Objective of Zakat as an Alternative to Riba

Since Riba has been prohibited in Islam and has been replaced with different alternative financial tools in Islam, zakat is one of socio financial tools to eliminate Riba from Muslim society as mentioned in the following Quranic verse:

وَمَا آتَيْتُمْ مِنْ رِبًا لِيَرْبُوَ فِي أَمْوَالِ النَّاسِ فَلَا يَرْبُو عِنْدَ اللَّهِ ۖ وَمَا آتَيْتُمْ مِنْ زَكَاةٍ تُرِيدُونَ وَجْهَ اللَّهِ فَأُولَٰئِكَ هُمُ الْمُضْعِفُونَ

And whatever you give for interest to increase within the wealth of people will not increase with Allah. But what you give in Zakat, desiring the countenance of Allah – those are the multipliers. (Surat al-Rum 30:39)

The above Quranic verse makes it clear that nay wealth gained through the payment or receipt of interest does not increase in value in the eye of Allah. Instead, it is seen as an unjust and unethical practice that does not earn any spiritual rewards. Zakat, on the other hand, is a form of obligatory charity and wealth purification in Islam. If it is given with a sincere desire to earn Allah’s pleasure, it will be multiplied in terms of spiritual rewards and blessings besides, multiplying the wealth of its givers. Hence, zakat serves as an alternative to Riba by promoting economic justice, ethical finance, alleviate poverty besides, fostering economic stability.