A report on the performance of Saudi banks in 2004 has shown that bank assets increased by 18 percent in 2004 over 2003. Assets stood at SR422.3 billion in 2004 compared to SR356.3 billion in 2003. Saudi banks saw their profits rise 36 percent to SR16.6 billion during the same year. Such figures are seldom attained by financial institutions anywhere in the world.
The release of the figures coincided with the announcement of a fatwa (religious edict) by the Islamic Research Center, the highest religious authority at Al-Azhar University in Egypt, authorizing the paying of zakah (alms) from money deposited in banks as capital sums.
This is an important resource that could be used to fight against poverty in this country. If the amounts taken as zakah from these vast capital sums were added to the zakah levied on stretches of land reserved for investment in real estate and other forms of land speculation, we would have at our disposal more than SR10 billion annually. Such a sum is more than enough to eliminate poverty if the money were spent for that purpose.
We do not lack resources but we continue to lack an approach and a mechanism for implementing the programs that would allow these funds to help the poor and needy.
Compared to other Arab countries, the Kingdom has very few charitable societies or funds earmarked to help the poor. We need to encourage the establishment of more charitable bodies and create more funds — especially for women and their requirements. This could be done through close coordination and cooperation at both local and national levels involving all those willing to join such effort. Those involved should have the highest level of professionalism and be trained to carry out charitable work which is very different from ordinary work. Neither should we hesitate to benefit from the experiences of others whether from East or West.
