<p>This study aims to find out (1) the procedure of distributing productive <em>infaq</em> to empower the SMEs’ economy and (2) the effectiveness of productive <em>infaq</em>-based economy empowerment for SMEs growth by BAZNAS through Sharia Financial Institutions in Pekalongan. This research applies a qualitative method using a phenomenology approach, where BAZNAS serves as the primary data. During data collection, this research uses triangulation: observation, interviews, and documentation. Additionally, the sample was selected based on a purposive sampling technique. This study finds out that productive <em>infaq</em> is allocated by sharia financial institutions. Also, the distribution of ZIS (alms and <em>infaq</em>) through the non-profit institutions does not apply profit sharing between BAZNAS and the institutions because it is under <em>qardul hasan</em>. BAZNAS utilizes the productive <em>infaq</em> to increase the capital for business people. If the business has achieved its targets and objectives, the program can be found to be effective. <em>Infaq</em> of Sharia Financial Institutions in 2017-2018 reached 160 million IDR that has been distributed to the SMEs. As a result, the distribution can be considered very effective and may need improvement to get economic growth in Pekalongan.<em></em></p>