AZAM Boosts Income and Inclusion for Asnaf Entrepreneurs
Alliance Islamic Bank’s Zakat Microfinancing Programme (AZAM) is proving to be a powerful catalyst for economic empowerment, enabling asnaf micro-entrepreneurs to build sustainable livelihoods through inclusive, interest-free financing.
According to an independent evaluation by Satu Creative, early participants of AZAM saw a 36% average increase in business revenue within a year—clear evidence of the programme’s effectiveness. The study, which assessed the first cohort of 36 entrepreneurs, also found that over 90% reported improvements in their lives, including better healthcare, education, and family well-being.
As Malaysia’s first Islamic social finance initiative of its kind, AZAM reimagines zakat as a vehicle for long-term economic resilience. Using a revolving fund based on the Qard (benevolent loan) concept, the programme channels zakat into interest-free microfinancing for asnaf entrepreneurs. As loans are repaid, the funds are reinvested to support new participants—ensuring a continuous cycle of impact.
Grounded in the principles of Value-Based Intermediation (VBI) and Maqasid Shariah, AZAM champions dignity, shared responsibility, and financial independence. The programme is delivered in collaboration with Lembaga Zakat Selangor (LZS), which identifies and verifies eligible recipients, and Amanah Ikhtiar Malaysia (AIM), which manages disbursement, repayment, and entrepreneur development training.
“The true success of AZAM lies not just in revenue growth but in the lives it transforms,” said Rizal IL-Ehzan Fadil Azim, CEO of Alliance Islamic Bank. “It’s about restoring dignity and enabling communities to thrive through meaningful financial inclusion.”
Following its success in Selangor, AZAM is poised for national expansion, with discussions underway with several State Religious Councils and Zakat Authorities. Alliance Islamic Bank also plans to scale the programme through wakalah-based zakat contributions, allowing individuals and institutions to channel their zakat via LZS directly into AZAM’s revolving fund. This will further widen access to financing and deepen community impact.
AIS welcomes partnerships with the private sector, government agencies, and NGOs to amplify the programme’s reach and contribute to its mission of “Building Alliances to Improve Lives.”
To learn more about AZAM, visit: www.alliancebank.com.my/Islamic/Business/Financing/zakat-microfinancing
