The role of economic solidarity in the Islamic economy and its impact on welfare in the city of Erbil

Abstract

Economic Takaful -solidarity- plays a pivotal role in the Islamic economic system, serving as one of its fundamental principles aimed at achieving social justice and solidarity among members of society, Takaful is built upon several key mechanisms such as zakat, sadaqah (charitable giving), waqf (endowments), and donations, all of which contribute to narrowing the gap between the rich and the poor and ensuring the basic needs of vulnerable groups in the city of Erbil are met. Economic Takaful has significantly enhanced social welfare by supporting those in need, creating job opportunities, and reducing poverty. It has also strengthened social cohesion and contributed to societal stability, especially in times of economic challenges and high unemployment rates. Local experiences have shown that charitable institutions and Islamic cooperative organizations have played an active role in directing resources toward developmental projects.