UAE | Government

Banks to pay Zakat to federal fund

The UAE Cabinet has issued a decision obligating local Islamic banks to transfer 2.5 per cent of their annual profits to the Zakat Fund, Gulf News has learnt.

  • Gulf News Report
  • Published: 00:17 March 27, 2008
  • Gulf News

Dubai: The UAE Cabinet has issued a decision obligating local Islamic banks to transfer 2.5 per cent of their annual profits to the Zakat Fund, Gulf News has learnt.

The decision is meant to streamline the distribution of Zakat to needy people and charities. Earlier, Islamic banks distributed Zakat to underprivileged people and charitable organisations in the UAE on their own. However, they will no longer be allowed to distribute Zakat by themselves. Zakat, the third pillar of Islam, is an amount of money that every adult mentally stable and financially able Muslim has to pay to support the poor and the needy.

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