Government Plans Strategic Investments to Expand Zakat Fund, Minister Shaheem Announces

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 announced. This significant step aims to enhance the country's Islamic finance system and address the growing needs of Zakat recipients. The announcement follows the recent passage of the Maldives' 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 explained that while the law does not mandate direct investments from the Zakat Fund, it allows for such initiatives if deemed necessary. The Minister highlighted the increasing demand for Zakat assistance, which has surpassed the current availability of funds. To tackle 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. The new Zakat law, effective from January, permits investments under the guidance of fiqh academies and fatwa councils. Minister Shaheem emphasized that this approach aligns with Islamic financial principles while addressing the growing needs of the population. Recent 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.