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In Islamic finance, an obligatory almsgiving, considered one of the five pillars of Islam, which can have implications for investment and asset management.
Zakat is an obligatory form of almsgiving in Islam, one of the five pillars of the faith, where Muslims are required to donate a certain portion of their wealth annually to those in need. In finance, zakat can affect how assets are managed, as it considers wealth beyond basic needs, influencing investment strategies and asset allocation in Islamic finance.
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