Page 1 of 15

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 07

August 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 286

Comparative Studies on Contemporary Zakat Distribution: A

Practical Experience of Some Selected Muslim States

Sheriff Muhammad Ibrahim

Universiti Sains Islam Malaysia (USIM) Bandar Baru Nilai, Negeri Sembilan Malaysia

Abstract:

Zakat is the major source of Islamic revenue

mobilization aiming at redistribution of

wealth from the rich among the societies to

the less privileged ones. In the Islamic

traditions, zakat is collected upon acquiring

certain amount of wealth and passing the five

stipulated conditions for zakatabilty, and is

given to certain category of people. In the

early Islamic communities, zakat has played

important roles in reducing poverty and

establishing social welfare. Unfortunately,

successive Muslim communities fail to

administer zakat in a central body as it was

the practice in the ancient Islamic era.

Recently, Many Muslim states and

communities consider the institutionalization

of zakat system under the auspices of law and

constitution. This study aims to examine the

practices of zakat distribution in Malaysia,

Sudan and Kuwait the three countries are

assumed the leading countries in cooperate

zakat management. The study finds that both

countries adopt zakat distribution system

suitable for their environment and level of

poverty. This study will help other Muslim

states and communities in developing or

improving the already existing zakat system.

Introduction

The Contemporary practices of zakat

management among Muslim communities

are viewed in three situations. These include;

a situation where the community is a

dominant Muslim community like Middle

Eastern countries, which can practice the

provision of Shariah at liberty; community

consisting of Muslims and non-Muslims

enjoying similar citizenship like Nigeria and

Malaysia; and Muslim minority states that

are not favored by the constitution of the land

to practice shariah (Sheriff & Amir 2015).

Most predominant Muslim states

take a wide variety of approaches to zakat

management among which are: (1) to ignore

the state’s involvement into zakat

management; (2) establish voluntarily entities

charged with zakat collection and attribution;

(3) to officially engage in zakat management

under government agencies. There are forty

predominant Muslim states in the world, out

of which sixteen institutionalize the zakat

management while twenty four do not. Lewis

(2006) sighted the example of Turkey after

the establishment of secular legal system

based on European civil codes.Most of these

countries justify their lack of involvement in

zakat based on excuses like: duplication of

taxation. These taxation models are

established and used by European and North

American countries. However, there are

empirical studies indicating that countries that

do not pertain to the legal rulings regarding

zakat, have a higher percentage of zakat

giving rates than those who commit to the

legal rulings of zakat (Riaz 2007). A study

carried out in Turkey presented that in 2006,

69% of the Muslims paid their zakat dues.

Page 2 of 15

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 07

August 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 287

On the other hand, surprisingly, only 60% of

Pakistanis paid Zakat despite the fact that the

zakat payment is made compulsory by the

Pakistani law (Riaz 2007).Many states faced

problems in the absence of zakat laws, as it

led to; the allocation of funds to the non- legitimate beneficiaries; multiplication of

payments; and some issues related to

transparency and accountability. For these

and other relevant reasons, some states

established government supported entities,

charged with the collection and distribution

of zakat (Prihatna 2005). Muslim states that

considers making zakat payment compulsory

by law includes, Saudi Arabia, Pakistan,

Libya, Sudan, Malaysia and Yemen (Act No.

89 of 1971, Libya), (Powell 2011) (Kahf

1989 and 1997) and (Zuhaili 2007).

Although, this states considers to fully

involving in zakat management and services,

each state adopted different methods of zakat

administration suitable to the existing laws of

the land. Among the reasons leading to the

establishment of zakat management

institutions are the incident of 9/11. Some

investigations revealed that there are a

number of “terrorist” suspected organizations

that benefited from the Islamic charities

(Baron 2005). This report attracted both, the

Muslim governments and the individual

donors to consider the need for government

involvement in the management of the zakat

funds. This is to ensure that the funds are

administered in line with the desired purpose

(Prihatna 2005). Countries like Egypt,

Jordan, Kuwait, Iran, Bangladesh, Bahrain,

Lebanon, Qatar, the UAE, Indonesia and

Oman, established centralized bodies for

zakat collection and distribution.

Challenges Facing the

Contemporary Zakat Distribution

Zakat distribution is not free from

challenges affecting its expedition, as

was the case for zakat collection and

management. Major problems

connected to zakat distribution

includes; the issues regarding the

determination of haddkifayah, the

location of zakat distribution; and

planning in zakat distribution. This

section discusses the scholastic views

on these issues with an aim to arrive at

the best practices of zakat distribution.

Hadd Kifayah (Minimum

amount for sustenance)

Hadd kifayah refers to the specific

amount supposed to be distributed to

each zakat recipients to fill the gap of

poverty. Questions related to the

minimum amount to be allocated to

each zakat recipients are discussed by

scholars. The most common questions

usually come in form of; ‘can zakat

recipients be given what will be

sufficient for him for the rest of his

life?’ or ‘is he given what will sustain

him to the end of the zakat year?

Imam Shafi’i maintained that the

group of poor and needy is to be given

what will sustain their needs for their

life time. This is referred to kifayatul

umr (minimum amount for life

sustenance) in the Shafi’i school of

thought. The Shafi’i school maintained

that by receiving zakat, it is expected

Page 3 of 15

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 07

August 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 288

that the receiver will no longer be poor

in the future (al-Nawawy 1997).

This view may not be consistent

considering the large number of

potential zakat recipients across the

globe. The application of this view

may result in deprivation of some in

favor of others.

The most logical view regarding the

concept of kifayatul umr is shared by

Ramli (1993) as; provisions of

economic empowerment for the zakat

recipients that will enable him

establish his own business that could

sustain him for the rest of his life.

In contrast, the maliki and the

majority of hanbali scholars are of the

opinion that the zakat allocations

should not exceed the basic needs of

the recipients for the period of one

year (al-Maqdisi 1972), (al-Bahuti

1982), (al-Qarafi 1994).

Contemporarily, al-Qardawi (2006)

supports the later view, arguing that

since zakat is paid once in a year, the

receivers should also be limited to

yearly collection. Al-Qardawi cited the

practice of the prophet S.A.W. of

reserving only one year food for his

family consumption.

This study prefers the allocation of

zakat on one year sustenance. It is

believed by the research to be more

consistent with the concept of zakat,

whereas the allocation of zakat on life

sustenance may discourage the

recipients from working hard to earn

for their life and benefits their families.

Hanafi school of thought specifies a

limited amount of zakat to be paid of

not more than 200 dirham (silver).

They argued, that since 200 dirhams

determine the difference between the

zakat giver and the recipients, the

allocation of zakat should not exceed

that amount (a-zarkashi 1978), (al- Bahuti 1982).

However, it should be noted, that

the application of nisab in the present

days could not be consistent with the

value silver dirham as discussed

earlier.

For the allocation of Zakat to the

categories of recipients other than the

poor and needy, scholars agreed that

each should be given according to their

needs. For instance; the indebted

requires what is enough to free him

from his debts; the wayfarer requires

what will support his expedition; and

the amilun are paid based on what is

agreed upon the authorities in charge.

Location of Zakat Distribution

The most popular view regarding

zakat distribution is that zakat should

be distributed within the community

from where it is received. This view is

expressed by Abu Zahra as cited in

Shahatah (1989). Similarly, al-Qardawi

(2006) supports this view, justifying