Pres. Muizzu ratifies Zakat bill, establishing new national fund and oversight structure
The Zakat Bill establishes a new Zakat Fund to be held at MMA for trustworthy management, distribution to beneficiaries and Shari'ah-compliant investments
President Dr. Mohamed Muizzu
President Dr. Mohamed Muizzu has ratified the Zakat Bill, marking its formal enactment following its unanimous approval by 63 lawmakers of the People’s Majlis during the final sitting of the Majlis in its concluding session of the year.
This government-sponsored bill is presented as an effort to strengthen the processes involved in the payment, collection and distribution of Zakat funds and assets across the Maldives.
Central to the legislation is the establishment of a new Zakat Fund intended to ensure what the government describes as the trustworthy management of Zakat proceeds.
The fund is designed to facilitate distribution to eligible beneficiaries and for specified needs, while also enabling investment of these funds in Shari’ah-approved avenues to generate returns.
The Zakat Fund will be maintained in a separate account within the Maldives Monetary Authority (MMA), distinct from general public accounts, under guidelines set by the Ministry of Finance and Planning.
MMA will act as the custodian of the fund. With its creation, the existing Zakat Fund previously established under the Public Finance Act will be merged into the new structure, including all related financial assets.
Under the new law, national Zakat policy, including the collection and distribution of Zakat assets and funds, will be determined by the president in consultation with the minister responsible for Islamic affairs.
The legislation also requires the formation of a Zakat council, which will advise the minister and the Zakat House on administration and oversight of the national Zakat system and coordinate its operational functions.
The Zakat council must be established within two months of the bill’s ratification and enactment. It will consist of the Islamic Minister, a Director General, an official designated by the central bank, an official from the Centre for Holy Quran, an official from the Ministry of Finance and Planning, an official from the Fatwa Council, an additional official from the ministry, and two experts with knowledge of Zakat matters.
Following its ratification, the bill has been published in the Government Gazette and the law is set to take effect on 1 January 2026.
