Abstract—Despite the advent cognizance of astronomical technique for the calculation of geographically related problems (positioning system, orbital and space navigation), when it comes to the development of Islamic calendar, Muslim scientists are too deeply bound with shariah issues. Majority of Muslim scientists are not in favor of the use of astronomical technique for the determination of the onset of an Islamic mo nth. Hence, a reliable Islamic calendar for business purposes never exists, and the Islamic calendar as the basis of Islamic accounting system is totally neglected. The use of the Gregorian that replaces an Islamic calendar actually has created huge unconsciously embezzled zakat (obligatory alms). Because the Gregorian calendar is some 11.5 days longer than the Islamic calendar, the use of the Gregorian calendar as the basis of Islamic accounting system has therefore created zakat payment deficit of about one year in every thirty-year operation of Muslims’ business.
This paper addresses the development a robust estimation model of the potential loss of the payable zakat from the collective possession of five different assets from stock market. Whilst the period of the assets ownership is only less than twenty years, the total zakat deficit is at the tune of almost US$10 million. With minor modification, the algorithm can be well suited for the use of financial statement data of any Islamic business in the future, inclusive Islamic banking. Advanced numerical and statistical analyses were utilized to achieve a relative accuracy of the estimate better than 0.5% of the stock price.
As zakat is obligatory alms for the purification of Muslim’s soul, an appropriate repayment scheme will generate unimaginably potential of Muslim s’ contribution to the global economy development, especially in eradicating poverty. The paper discloses its potential; hence it is also a breakthrough strategic path for the development of a flawless shariah economy in the future.
Index Terms—Flawless shariah economy, pseudo shariah economy, Muslims’ civilization debt.
T. Saksono is an Associate Professor in the Faculty Technology Management and Business, University Tun Hussein Malaysia (e-mail: firstname.lastname@example.org).
D. Martin @Daud Juanil is an A ssociate Professor in the Faculty Technology Management and Business, University Tun Hussein Malaysia (e-mail: email@example.com).
N. Sharipah Sultan Sidi is a Professor and Dean in the Faculty Technology Management and Business, University Tun Hussein Malaysia (e-mail: firstname.lastname@example.org).
Cite: Tono Saksono, David Martin @Daud Juanil, and Noor Sharipah Sultan Sidi , "Undisclosed Potential of Muslims’ Contribution to Global Economy Development ," International Journal of Trade, Economics and Fiance vol. 2, no. 6, pp. 455-461, 2011.