UAE: New Zakat Law Approved
Khaleej Times, 19/03/2025: The UAE has approved a new zakat draft law, imposing fines of up to Dh1 million and imprisonment for illegal collection.
The Federal National Council (FNC) has passed a comprehensive federal law regulating the collection, distribution, and management of zakat across the UAE. The decision, led by the Chairman of the General Authority for Islamic Affairs, Endowments, and Zakat, aims to enhance transparency and accountability in the administration of zakat funds. The new law governs all aspects of zakat processes, including the investment of surplus funds in line with Sharia principles, and applies to all individuals and entities engaged in zakat activities within the UAE, including those in free zones. Certain organisations may be exempted by the Cabinet, provided they meet registration and reporting requirements.
The law introduces strict penalties for violations. Collecting, receiving, or distributing zakat without authorisation is considered a crime against public funds, punishable by imprisonment, fines of up to Dh1 million, or both. Misuse of funds, unauthorised deductions, and submitting false documents may result in further fines and imprisonment. Authorised entities also face fines of up to Dh1 million for violations such as distributing zakat abroad without permits, failing to comply with regulations, or mismanaging investments. All entities must regularise their status within a year of the law’s enactment, with an option for extension.
A key feature of the law is the creation of the ‘National Zakat Platform,’ which is a unified digital system to monitor authorised entities, beneficiaries, and fund allocations. This platform aims to ensure zakat funds are distributed efficiently to rightful beneficiaries and managed transparently. The law also restricts zakat distribution outside the UAE to exceptional circumstances like natural disasters, requiring official approval through the platform.
The law maintains the religious integrity of zakat by requiring investment surplus to be used exclusively for zakat purposes, and bars deductions for managing authorities. After extensive debates, the FNC upheld the original provision allowing traditional zakat giving to relatives and acquaintances without the need for excessive administration.
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