The Federal National Council (FNC) approved a new draft federal law on Tuesday that would govern the UAE’s zakat collection, distribution, and administration. As part of broader initiatives to improve accountability, transparency, and governance over zakat funds, the law establishes severe consequences for infractions, including fines of up to Dh1 million and imprisonment.
According to Dr. Omar Habtoor Al Darei, Chairman of the General Authority for Islamic Affairs, Endowments, and Zakat, the new law is a major step in creating a comprehensive framework to control zakat operations nationwide. “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 continued, adding that it also improves governance, guarantees that zakat reaches eligible recipients efficiently, and fosters wider community participation.
In accordance with Sharia rules and national norms, the draft legislation regulates all procedures pertaining to the receipt, collection, distribution, and disbursement of zakat, including the investment of excess monies.
It is applicable to all people and organizations doing zakat in the United Arab Emirates, including those doing business in free zones that are both financial and non-financial. However, if some organizations follow the registration and reporting requirements, the Cabinet may exempt them from some law provisions.
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