Should Zakat Be Used for Humanitarian Finance?

On March 26 a very interesting document “An Act of Faith: Humanitarian Financing and Zakat” prepared by Chloe Stirk was launched at an event hosted by Development Initiatives and Muslim Charities Forum in London. The paper echoes the concerns expressed by UN Humanitarian Summit at the ever-increasing demand and supply gap for humanitarian funds. For instance, the paper points…

Revisiting Islamic Philanthropy for Sustainable Opportunities Finance

2nd Yayasan Tun Ismail Berdafter Public Lecture on Islamic Finance at Kuala Lumpur Plan of Lecture: Opportunities Finance in Islam Institutions of Islamic Philanthropy 2.1. Institution of Zakat 2.2. Institution of Waqf Meeting the Resources Gap 3.1. Estimating the Resource Gap 3.2. Estimating the Potential Resources from Zakat 3.3. Estimation of Potential Resources from Waqf…

Growing Potatoes on the Shores of Nile: A Successful Experiment in Islamic Microfinance

An abundance of fertile arable land, water resources on the shores of Nile and the presence of a hardworking farming community in the region have led a Sudanese microfinance outfit, the Al-Anaam Microfinance Company to partner with several financial institutions, e.g. the Bank of Sudan, the Islamic Development Bank, the Farmers’ Bank, the Investment Bank…

Challenges to Zakat Mobilization: Case of Sudan

The following are some of the critical success factors and challenges to optimizing zakat collection from crops, livestock, trade and business, salaries and professional incomes, minerals and other sources. A problem that persists across all categories of zakat is identified as lack of public awareness of the mandatory nature as well as the rules of…

Trends in Zakat Mobilization in Sudan

The zakat system in Sudan has evolved over time. The system has been fine-tuned over the years with proactive changes in the legal and regulatory framework. The formal organization of zakat in Sudan began in the 1980s with private foundations collecting zakat in accordance with Shariah law. This formed the basis of successive laws of…

Hierarchy of Principles for “Good” Zakat Laws

Zakat laws across the globe display wide variation. They vary in their goodness. They vary with respect to clarity, coherence and complexity. Goodness of the laws is about the content of laws, their architecture, their language and their accessibility. While it is not surprising that zakat laws and their subordinate regulations may be complex there is no reason…

Proposed Zakat Law for Maldives

The following is a draft of proposed zakat law for Maldives. It has been prepared following the "hierarchy of core principles" that I intend to elaborate in my next blog. Comments are welcome. THE ZAKAT ACT, 201x (DRAFT)   CONTENTS Chapter I: General Provisions Title, Definitions, Objectives, General Principles Chapter II: Zakat Management Infrastructure General, Zakat…