Exploring the Lived Meaning of Productive Zakat in the Economic and Spiritual Transformation of Mustahik in Urban Indonesia

Abstract

Zakat, as a core institution in Islamic economics, has increasingly been implemented in productive forms to support long-term poverty alleviation and self-reliance among Muslim communities. While previous studies have examined its economic outcomes, limited attention has been paid to how recipients (mustahik) experience and assign meaning to this support within their personal, spiritual, and social lives. Despite measurable improvements in income and business activity, little is known about how mustahik interpret the transformative process they undergo after receiving productive zakat particularly in terms of identity, dignity, and faith. This study employs an interpretative phenomenological approach to explore how mustahik construct meaning from their experiences with productive zakat and how this influences their internal transformation. Data were collected through in-depth, semi-structured interviews with eight participants who had received productive zakat in urban Indonesia. Thematic analysis revealed four key themes: rediscovery of dignity through self-reliance, internalization of religious motivation, reconstruction of social roles, and a heightened sense of gratitude and accountability. These themes indicate that productive zakat fosters not only economic empowerment but also spiritual growth and social reintegration, revealing a holistic model of beneficiary transformation. These findings contribute to a deeper understanding of zakat as a faith-based development tool that affects both material and immaterial dimensions of well-being, offering valuable insights for future policy design and research in Islamic social finance.