Blitz Bureau
Anew draft federal law regulating the collection, distribution, and management of zakat in the UAE was passed by the Federal National Council (FNC) recently, reported Khaleej Times.
The law introduces strict penalties for violations, including fines of up to Dh1 million and imprisonment, as part of wider efforts to enhance transparency, accountability, and governance over zakat funds.
The new legislation marks a significant step in developing a comprehensive system to regulate zakat activities across the country, said Omar Habtoor Al Darei, Chairman of the General Authority for Islamic Affairs, Endowments, and Zakat. It enhances governance, ensures zakat reaches eligible recipients efficiently, and encourages broader community participation, ensuring that “zakat money is distributed to its rightful beneficiaries under the highest levels of transparency and accountability and reinforces the public’s confidence in zakat institutions and promotes social solidarity in the UAE,” he added.
The draft legislation governs all processes related to receiving, collecting, distributing, and disbursing zakat, including the investment of surplus funds, in line with Sharia rulings and national regulations, the paper added. It applies to all individuals and entities engaged in zakat activities within the UAE, including those operating in financial and non-financial free zones.
However, the Cabinet may exempt certain organisations from parts of the law, provided they comply with registration and reporting requirements. The law introduces strict penalties for violations involving zakat funds. Crimes against zakat will be treated as crimes against public funds. Individuals found collecting, receiving, or distributing zakat in violation of the law may face imprisonment, fines up to Dh1 million, or both. They will also be required to return any funds unlawfully collected.
Additionally, anyone who obtains zakat funds through false or forged documents, knowing them to be inaccurate, may be punished with imprisonment of up to one year, fines of up to Dh200,000, or both. Entities currently engaged in zakat activities must regularise their status within one year of the law’s enactment. The Cabinet may extend this deadline upon recommendation from the Chairman of the Authority.
