Abstract :
This study aims to explore Sharia-compliant methods for investing zakat funds to support small and medium enterprises (SMEs). Using a descriptive method, the study examines key Islamic financing contracts such as Ijarah (leasing), Musharakah (partnership), Mudarabah (profit-sharing), and Qard al-Hasan (benevolent loan). The main findings indicate that properly structured zakat investments can empower SMEs, stimulate economic development, and contribute to poverty alleviation, provided that project selection, risk management, and Shariah compliance are carefully observed. The study contributes to the literature by highlighting practical approaches for zakat fund deployment and offering recommendations to enhance institutional capacity and ensure effective monitoring of zakat-financed projects.