This article critically analyzes the fiqhi issues relating to the use of zakat fund in developing microtakaful model. This is a theoretical paper using content analysis approach that delves into the works of Islamic scholars on the concept of zakat distribution and evaluates the use of zakat fund in the development of microtakaful model for zakat recipients from the Islamic perspective. The paper concludes that the zakat-based microtakaful model requires integrated effort between the industry players and zakat authorities. Some of the fiqh issues that seem to be an obstacle are the issue of tamlik (ownership transfer). This paper suggests the agency-based model in mitigating Shariah risk, particularly concerning the tamlik issue. The implementation of microtakaful using zakat will contribute to improve the method of zakat distribution. In addition, the findings suggest the need for conducting further research on a new proposed model based on agency contract to resolve the issue of tamlik in using zakat fund.
Microtakaful, zakat, poor, B40, model
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