Zakah

The third of the five core pillars of Islam is to pay an amount of one’s wealth to charitable causes, known as zakah in Arabic. The Quran commands Muslims to pay the zakah in several places in the Quran and praises those who “give out from what they have been provided with”[1]. The word zakah in Arabic means purity and growth. The Prophet Muhammad ﷺ said, “Whoever does three deeds will taste the flavour of faith: One who worships Allah alone, declares there is none worthy of worship but Allah, and who gives zakah from his wealth each year with a cheerful and earnest soul.”[2] Zakah differs from the capitalist system as it requires yearly payment on excessive wealth, preventing wealthy individuals from hoarding their surplus wealth. Zakah is taken from 4 types of wealth: Livestock, crops and fruits, gold and silver, and trade items. On savings, gold, silver and trade goods held above a minimum threshold (nisab) for a full lunar year, the rate is 2.5% (Sahih al-Bukhari 1454). According to the Journal of Sustainable Agriculture 2012[3], the world's farmers produce enough food to feed 1.5x the global population. The zakah taken from crops and fruits is between 5-10% (Sahih al-Bukhari 1483) and given to those who need it most. The Quran names eight groups who may receive zakah, including the poor, the needy, those in debt and travellers in need (9:60). The Prophet Muhammad ﷺ said, “Give in charity because a time will come when a person will carry his object of charity from place to place (and he will not find any person to take it) and any person whom he shall request to take it, I will reply, ‘If you had brought it yesterday I would have taken it, but today I am not in need of it.’”[4]

Zakah reminds us that our wealth is a blessing and a test from God that should not be taken for granted. Whilst Islam is not anti-capitalist, zakah and the Islamic financial system provides measures to regulate and restrict uncontrolled greed and capitalism.

[1] Quran 2:3.

[2] Abu Dawud, 1582.

[3] https://www.researchgate.net/publication/241746569_We_Already_Grow_Enough_Food_for_10_Billion_People_and_Still_Can't_End_Hunger

[4] Sahih al-Bukhari 1411; Sahih Muslim 1011.