The Role of Behavioural Economics in Enhancing Zakat Collection:

An Applied Approach from an Islamic Perspective on the Jordanian Zakat Fund

Dalia Ibrahim Mustafa

Noor Abed Alfatah Abualhaija

Deema Khalid Odeh

Lubna Khalaf

 

Abstract: Contemporary and classical Islamic economic theories are used to explore how behavioural economics can improve zakat collection and compliance in Jordan. Traditional economic approaches assume rational, self-interested agents, but cognitive biases, emotions, and social norms affect real-world decisions. Thus, Islamic values of ethical giving, communal responsibility, and spiritual accountability may influence individuals’ charitable giving practices. The study uses a literature review and stakeholder interviews to examine how nudging, framing, and social comparison can be ethically applied within a Shari’ah-compliant framework to increase zakat engagement. The paper presents practical, culturally grounded strategies for the Jordanian Zakat Fund, including a Takaful investment fund, SMS-based donation reminders, collaborations with Islamic banks, and a zakat rewards program. It also recommends modifying communications to match availability and effort-reduction biases. If Islamic financial institutions maintain voluntariness, transparency, and religious integrity, they can increase zakat engagement, according to the study. This research builds on Islamic behavioural economics and provides a policy-relevant model for improving zakat systems in Muslim-majority countries. It enables a more effective, trust-based, and sustainable zakat infrastructure in Jordan and beyond by integrating psychological insights with faith-based obligations.