JEDDAH, 28 January 2007 — Saud Ounallah, assistant chairman of Jeddah Chamber of Commerce & Industry (JCCI), signed an agreement with Hussam Sadaka, director of the Sadaka Office for Financial and Legal Consultations, in order to organize the procedures of collecting Zakah (compulsory Islamic alms giving) from businessmen and businesswomen.
“Hussam Sadaka will be in charge of revising files related to businessmen and businesswomen of the JCCI,” said Adnan Mandoura, general manager, business sector and committees. The agreement will avoid any miscommunication and disagreements between both business executives and the Saudi Zakah Department.
Zakah is calculated as 2.5 percent of annual income including capital gains, but has various exceptions and qualifications. For example, food and medicine and other necessary expenses are legitimate Zakah exemptions.
As financial mechanisms have become more complicated in modern times, much confusion has emerged among Muslim entrepreneurs and investors in terms of calculating the annual alms-payment. “For example, there is a disagreement over whether loans taken out to complete projects are included in the calculation of Zakah ,” he said. “In fact, these loans aren’t counted. This new agreement should help clear up some things.”
The office will put a criterion for collecting Zakat at the JCCI.
Saleh Al-Turki, chairman of the JCCI, urged this cooperation between the office and the JCCI in order to support the investment environment and encourage the private sector to invest and make use of the economic boost that the Kingdom is living today.