Salam-Based Microfinance by BoK ? III

Salam has traditionally been understood as a mode of agricultural finance. Indeed, as scholars point out, one of the reasons why salam is admissible as an Islamic mode, even while violating the basic Shariah rule of “do not sell what you do not have”, is because of its economic significance.  It provides a mechanism to…

Islamic Participatory Microfinance by BoK ? II (Abu Halima)

The Abu-Halima Greenhouses Project of IRADA, designed in 2011, uses a composite model of intervention that combines several “smart” factors and is designed to address several critical social issues including lack of food security, unemployment and poverty. It aims to open new economic opportunities for young university graduates with formal education in agriculture. The project…

Islamic Participatory Microfinance by Bank of Khartoum

The name is now familiar among Sudan’s poor, unemployed and recent pass-outs from universities. The Irada program of Bank of Khartoum is experimenting with new and innvovative models of intervention to make a dent on chronic social problems, such as, poverty and unemployment. As part of the Sudanese economic system, it operates as a Shariah…

Zakat Management by Islamic Community in Bosnia & Herzegovina

One of the delegates at the World Zakat Forum held at New York City during 28-29 May 2014, who made an instant impact among the participants with his excellent presentation and unbounded enthusiasm was Elnur Salihović. Br Elnur heads the Zakat Office of the Islamic Community in Bosnia and Herzegovina. My brief interaction with him…

Business Zakat Accounting: Fiqhi Basis

The available zakat accounting standards as well as laws governing business zakat reflect a sort of consensus that adjusted net working capital of a business may be regarded as the base for computation of zakat liability. The second accepted alternative is the adjusted growth capital which essentially arrives at the same outcome, given the accounting…

Business Zakat Accounting & Taxation in Malaysia

Unlike Saudi Arabia, Malaysia doesn’t have an integrated zakat and taxation system. Zakat management like all religious matters in Malaysia is the reponsibility of each of its thirteen states  and a prerogative of its ruler (sultan). The Shariah-legal and regulatory framework, infrastructure for collection and distribution of zakat is provided the respective State Islamic Religious…

Business Zakat Accounting & Taxation in Saudi Arabia

Saudi Arabia is one of the few countries in the world to have fully integrated zakat with income tax. It established the Department of Zakat and Income Tax (DZIT) under the Ministry of Finance by the Ministerial Resolution no. 394, dated 7/8/1370 H. (14/06/1951). While its headquarter in Riyadh deals with large zakat and tax payers, the other…

A Response to Proposed Core Principles for Zakat Management

A quick review of the document prepared by Working Group led by Bank Indonesia on proposed core principles for zakat management raises certain important questions that should be addressed before setting out the principles. Uniqueness of a Zakat Institution (ZI) A zakat institution is NOT a bank though it may be seen to engaged in…

Proposed Core Principles for Zakat Management

A major initiative to transform the global zakat system is in progress. Led by experts from Bank Indonesia, BAZNAS, the apex zakat body in Indonesia and IRTI-IDB, a meeting to be held during the last week of this month in Jakarta will deliberate upon various issues relating to zakat management and to formulate the core principles “as a…

A Welcome Initiative for Zakat Management in Bangladesh

The development of zakat management system in Bangladesh is long overdue. While commercial microfinance as a tool of poverty alleviation has been under considerable limelight, the same is not true for the zakat. Bangladesh is one of the world's most densely populated countries with 150 million people, 26 percent of whom live below the national…

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