The Influence of Global Financial Trends on Zakat via Stock Investment: A Comparative Study between the United Arab Emirates and Indonesia

Abstract

The purpose of this study was to analyze and compare the influence of global financial trends on zakat through stock investments between the United Arab Emirates and Indonesia, as developed and developing countries. Also, this study would prove a theory that states return in the stock market, which is called market value would affect the nisab of zakat. This study used secondary data in qualitative research which tried to describe how zakat on stock was influenced by global financial trends. The global financial indicators which would be analyzed such as GDP, DJIA, UAE stock market, and Jakarta Composite Index. For this work, UAE and Indonesia as developed and developing countries were used as a case study. The Information on global financial trends post-COVID was collected since it made a huge trend. The results of the study indicated that global financial trends have a significant influence on the stock market. But the fluctuation in the stock market which had the potential to create market value as a nisab requirement did not influence zakat significantly. The research implies that zakat can be utilized as a promising investment alternative in the face of ever-changing global financial trends. This study contributes to the literature on zakat and stock investment and serves as a reference for practitioners, researchers, and decision-makers in global finance and investment.      

Keywords: Global Financial Trends, Zakat, Stock Investment