“Zakah” on Money
“In The name of Allah the Merciful”
“Alms are for the poor and the needy and those employed to administer (the funds); for those whose hearts have been (recently) reconciled (to the truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: thus is it) ordained by Allah, and Allah is full of knowledge and wisdom”
It is deducted from the depositors and the investors of the Islamic banking units upon their request. “Zakah” is also paid from the profits made by the bank as it is considered to be one of the alms channels.
The bank distributes “Zakah” after approval from The Shari’a Supervisory Board in accordance with the following:
- It is disbursed among at least 3 channels of spending “Zakah” including the Debtors’ Fund.
- Societies authorized by the Ministry of Social Affairs.
- The authorized societies of students’ welfare.
- The governmental hospitals.
The Debtors Fund
The fund is established by a Fatwa from The Shari’a Supervisory Board. It is covering risks and losses of the investors, dealing with the Islamic banking units when they face unexpected and uncontrollable circumstances that are difficult to be overcome.
The resources of the Fund
- 1/8 of “Zakah” that is deducted from the profits made by the bank.
- 1/8 of “Zakah” that is deducted from the depositors’ revenues upon their request.
- 1/4 of revenues resulted from the Fund investment.
- 2% of the total divisible revenues after deducting all expenses and before deducting the depositors’ portion to replenish the fund.
- Aids, donations, and wills approved by The Sharia Supervisory Board to be accepted by the bank.