The government will invest from the Zakat Fund and boost its resources over the next two years, Minister of Islamic Affairs, Dr Mohamed Shaheem Ali Saeed has said, marking a significant step toward enhancing the country's Islamic finance system.
This move follows the recent passage of the nation's first-ever Zakat law, which provides a legal framework for managing and expanding the fund in accordance with Islamic Shariah principles.
Speaking on PSM News’ ‘Raajje Miadhu’ programme, Minister Shaheem emphasised that while the law does not mandate direct investments from the Zakat Fund, it opens the door for such initiatives if deemed necessary.
The Minister highlighted the growing needs of Zakat recipients, which have surpassed the current availability of funds. To address this, the government aims to establish a permanent inflow of money into the fund through strategic investments, ensuring that more people can benefit from Zakat distributions, he added.
The new Zakat law, which will come into effect from January, allows for investments to be made from the fund under the guidance of fiqh academies and fatwa councils. Minister Shaheem explained that while the law does not require investments, it provides the flexibility to do so under certain conditions. This approach is designed to align with Islamic financial principles while addressing the increasing demand for Zakat assistance.
The past two years have seen record-breaking Zakat contributions in the Maldives, with over 6.4 million deposited into the fund last year alone. The introduction of the Zakat Act is part of broader efforts to strengthen the Zakat system, ensuring transparency and public confidence.