Ramadan in UAE: What is the difference between Zakat Al Mal and Zakat Al Fitr?
What each type of Zakat means, how much to pay, and when it is due
Dubai: As Ramadan comes to an end, many people prepare to fulfil their charitable obligations. Two key forms of Zakat are commonly discussed during this time - Zakat Al Fitr and Zakat Al Mal. While both are essential, they serve different purposes and follow different rules.
What is Zakat?
Zakat (almsgiving) is one of the Five Pillars of Islam, which are the foundational acts of worship and practice in a Muslim's life.
It involves giving a portion of one's wealth to those in need, typically 2.5 per cent of savings, investments, and other accumulated assets that have been in the possession of the individual for a full lunar year.
What is Zakat Al Fitr?
Zakat Al Fitr is a mandatory charitable donation that must be paid before the Eid prayer.
It is typically calculated as around 2.5kg of rice or about Dh25 per person. Every Muslim - man, woman, child, or elderly, who possesses food or wealth in excess must donate.
Fidyah for those unable to fast is set at feeding one poor person with 3.25 kg of wheat or Dh20 per day. The same Dh20 per-person rate applies in Fidyah feeding cases.
On March 16, the UAE Council for Fatwa confirmed that Zakat Al Fitr may be paid in cash. The measure is intended to ease the process for donors while ensuring support reaches those in need ahead of Eid Al Fitr.
In a statement issued ahead of the Eid Al Fitr holiday, the council outlined the religious rulings governing Zakat Al Fitr, noting that it remains an obligatory charity prescribed to purify the fasting person and provide support to the poor.
What is Zakat Al Mal?
Zakat Al Mal is set at 2.5 per cent of accumulated wealth and assets.
It can be paid at any time of the year but is most commonly given during Ramadan for increased spiritual reward. It becomes due once the Nisab threshold is met for a full lunar year.
Adult Muslims whose wealth exceeds the Nisab threshold for a full lunar year are required to pay Zakat. This includes those with savings, investments, or other qualifying assets.
Meeting this obligation ensures support for those in need while fulfilling one of the core pillars of Islam.
What is Nisab and how is it calculated?
Nisab is the minimum amount of wealth a Muslim must possess before being liable to pay Zakat.
It is based on the value of 87.48 grams of gold or 612.36 grams of silver. Since the value of gold and silver fluctuates, the Nisab threshold changes accordingly.
Various assets are subject to Zakat, including gold, silver, cash, savings, investments, business inventory, and agricultural produce.
Personal belongings such as clothing, household furniture, and one’s primary residence are exempt. The key requirement is that the assets must exceed the Nisab threshold and be held for a full lunar year.
