Causes of Poverty in Islam

Poverty is a complex issue influenced by a variety of factors. In the context of the Islamic community, several specific causes contribute to the persistence of poverty. Below are some key factors:

The negligence of zakat (obligatory almsgiving) and the reluctance of wealthy individuals to fulfill this duty, alongside the failure to offer optional charity (sadaqah). Zakat represents a crucial source of support for the poor and needy, as they are the primary recipients of these funds, ultimately aiding them in achieving financial stability and meeting their essential needs.
The hoarding of wealth, which is prohibited by the Qur’an. Allah states: (And those who hoard gold and silver and do not spend it in the way of Allah, give them tidings of a painful punishment). Scholars have differing views regarding the definition of hoarding, with some arguing that it refers to failing to invest wealth—regardless of whether zakat is paid—while others contend that hoarding does not apply to wealth that has its zakat paid.
Usury (riba) has several deleterious effects, including discouraging lenders from engaging in lawful work and imposing prohibited interest rates on their funds. This practice can lead to stagnation in production and negative consequences for the economy.
Excessive spending and wastefulness on non-essential items, while ignoring the needs of individuals who strive to secure basic necessities.
Market monopolies (ihtikar), which drive up the prices of goods, making them unaffordable unless individuals tap into substantial savings.

Combating Poverty in Islam

Islam provides its followers with various methods and strategies to address and eradicate poverty. Below are some of these approaches:

Encouraging hard work and economic activity, as labor constitutes the foundation of a thriving economy and is the primary means of earning a livelihood.
Supporting family members and other individuals within the community. Allah emphasizes the importance of kindness to relatives, while believers are also encouraged to extend this support to others through zakat, vows, food donations, sacrificial offerings, and other forms of voluntary charity.

Definition of Poverty

Poverty is linguistically defined as a state of need or hardship. The term “poor” refers to someone whose circumstances have severely compromised their ability to support themselves; metaphorically, their backbone is viewed as ‘broken’ under the weight of their needs. In a broader sense, a poor person lacks sufficient financial resources and is unable to earn a living or work.