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This paper discusses the role of zakat as a mechanism for poverty eradication. Zakat is defined as 'purification' or 'growth'. Zakat enables the wealthy or rich people to purify their hearts from greed by giving a part of their wealth to the needy. The needy who receive the zakat are then able to fulfil their needs, and, thus, the economic wealth bestowed by Allah s.w.t is spread to all the people and real economic growth is achieved. Zakat, if managed effectively and efficiently, should bedoi:10.17576/pengurusan-2013-39-13 fatcat:2z7a4sub2ffpbm5sxh3lwwm75a