Abstract
The research aims to know This paper presents suggested mechanisms for Islamic financing through Al-Zakah foundation. These mechanisms are based on the principle of "loaning for borrowing" in a way that helps to collect Al-Zakah from its payers and encourages saving and investment. The paper also presents a model for analyzing a person's economic behavior under the principle of loaning for borrowing which includes deriving a function of the saving utility. The study comes up with a way of specifying the income level that determines who should pay Al-Zakah and who should receive it and how to use the suggested model in drawing the political policies especially those that wish to eliminate poverty and help individuals improve their living conditions. The study also shows the impact of an individual's behavior on the growth of the country's economy and fulfillment of the society's needs after implementing the suggested financing mechanisms. Finally, the paper sets some general conclusions on the role of Al-Zakah foundation, the possibility of building an Islamic economic theory, the characteristics of the Islamic economic system, and the importance of the economic analysis in jurisprudence.
