Leveraging Qardhul Hasan Practices from Zakat Funds for Sustainable Development: a Maqasid Sharia Perspective and Its Contribution to SDGs in Malaysia
Authors: Adnan Nurul Ilyana Muhd , Ghani Nik Abdul Rahim Nik Abdul , Ahyani Hisam , Syamsudin  , Soleh Irfan , Slamet Memet , Mutmainah Naeli , Lousada Sérgio António Neves , Sofiani Trianah 
Published: December 2024

Objective: This study aims to examine the implementation of qardhul hasan from zakat funds within the framework of maqasid sharia, focusing on its potential contributions to sustainable development, particularly in relation to the achievement of the Sustainable Development Goals (SDGs). Specifically, the study explores how zakat funds, when used for qardhul hasan, can contribute to SDGs related to poverty alleviation, economic inclusion, and social justice in Malaysia.
 
Theoretical Framework: This research applies Islamic finance theory, particularly maqasid sharia, in the context of zakat fund distribution. Maqasid sharia emphasizes the protection and welfare of the community, aligning with the principles of sustainable development. The theory of sustainable development is linked to Islamic financial practices, particularly in how qardhul hasan can serve as a tool for economic empowerment and social equity.
 
Method: A qualitative research approach is employed in this study, utilizing content analysis and semi-structured interviews. Data are collected from various sources, including academic journals, articles, and reports on zakat fund practices in Malaysia. The study evaluates the governance of zakat funds, specifically focusing on the implementation of qardhul hasan as a sustainable financial instrument.
 
Results and Discussion: The study finds that qardhul hasan, when implemented effectively with maqasid sharia principles, can play a crucial role in promoting sustainable development by contributing to poverty alleviation, economic empowerment, and social inclusion. However, challenges remain in the implementation process, including the lack of standardized guidelines for zakat fund governance and the need for greater awareness among stakeholders regarding the potential of qardhul hasan. The study emphasizes the importance of clear governance frameworks and strong partnerships between the government, religious institutions, and the community in ensuring the effectiveness of zakat fund distribution.
Research Implications: This research offers practical recommendations for policy makers and practitioners in Islamic finance to enhance the governance of zakat funds. It suggests improving transparency, establishing clear parameters for qardhul hasan, and raising awareness about the role of zakat in achieving SDGs. Collaboration among various stakeholders is essential for maximizing the social and economic benefits of zakat funds.
 
Originality/Value: The originality of this study lies in its exploration of qardhul hasan as a tool for sustainable development, offering insights into its role in advancing the SDGs, particularly in the Malaysian context. This study contributes to the literature on Islamic finance and sustainable development, providing a model for integrating maqasid sharia into zakat fund governance to support sustainable and inclusive societies.