This paper investigates the impact of zakat on the reduction of poverty in Egypt by estimating the
resource gap between reducing poverty and the potential collection of zakat.
Also, this paper discusses the role of zakat on financial inclusion and illustrates the experience of
Malaysia and Indonesia in using zakat as a tool to reduce poverty and income inequality.
Finally, it compares between the resource gap of poverty reduction and the potential zakat
collection in Egypt; to determine whether zakat can eradicate or eliminate poverty. We used poverty
gap to estimate resource shortfall to poverty reduction.