Is zakat an Islamic economic system or a social welfare system, and if not, what is the Islamic economic system and the Islamic social welfare system? Is zakat the social welfare system, and when is an individual entitled to receive government aid from a Muslim or non-Muslim country?

The texts of Islamic law do not contain a definition for an "Islamic economic system." However, the Sharia has clarified the rulings related to economic life. It can be defined as the collection of general economic principles derived from the Quran and Sunnah, and the economic structure built upon them. Alternatively, it is the system that directs and regulates economic activity according to the principles and policies of Islam.

Among its principles are: the right to ownership, the prohibition of assaulting another's property, the permissibility of benefiting from what is on the earth, and the prohibition of usury (riba), gambling (maysir), and injustice. Among its manifestations are: permissible sales, partnership (sharika), profit-sharing (mudaraba), leasing (ijara), agricultural partnership (muzara'a), and permissible investment.

Zakat is an integral part of the Islamic economic system. It is a means of achieving social welfare, which is not limited to it but also includes charity (sadaqa), endowments (waqf), spoils of war (fay' and ghanima), and grants from the public treasury (bait al-mal). It obliges the wealthy to pay zakat and ensures sufficiency for the poor and needy. Islamic law has designated the poor as recipients of zakat, expiation (kaffara), and ransom (fidya) to narrow the scope of poverty.

A person is entitled to assistance from the Muslim state if they are unable to work and earn, or if they have no one to support them. Some Muslim countries have aid systems like retirement pensions, while non-Muslim countries have their own systems. A Muslim should be keen on earning a lawful living and being a giver, not a beggar, especially from a non-Muslim state, in accordance with the saying of the Prophet, peace and blessings be upon him: "The upper hand is better than the lower hand."