The scholars and experts say that the proper collection and distribution of zakat would alleviate poverty, adding that there is a need to upgrade the entire system of collecting and distributing zakat using modern technology, and a revamping of the Zakat Department, which they said should be independent and be given more powers.

An estimated SR60 billion is collected in zakat every year in the Kingdom, which was among the first countries to introduce an obligatory zakat collection system over 60 years ago, Al-Riyadh newspaper reported.

Dr. Ibrahim bin Saleh Al-Omar, dean of the Faculty of Economics and Administration at Al-Qassim University, said it is important to discuss and review the Kingdom’s current zakat collection system.

“Zakat is the first known system in the history of mankind that has the potential to create social justice among all members of society. We need to revamp how we collect zakat to realize its purpose,” he said.

According to Dr. Ibrahim, the Kingdom’s current system of collecting zakat is one of the country’s oldest financial systems and was introduced some 60 years ago. He added that the system needs to be improved, as it is not effectively realizing its goals.

“This is mainly because the Zakat Department is a branch of the Ministry of Finance. It is high time to reorganize the Zakat Department and make it one of the Kingdom’s major financial organizations. It should either be an authority or corporation with vast powers to ensure individuals, firms and companies pay zakat without any exemption,” he said. He added that over SR60 billion in zakat money is collected in the Kingdom each year. 

“Considering the robust growth that the Saudi economy has been seeing over the past few years, this amount could increase if zakat were collected properly,” he said.

Dr. Ibrahim further suggested the Zakat Department should be given further powers that would lead to the proper distribution of revenue to deserving people and investments that would generate more cash for the needy.

“This reorganized body should undertake a headcount of all citizens and foreigners as well as companies in the Kingdom. Then the system of zakat collection should also be reviewed in a way that takes into account the financial position of both individuals and firms,” he said.

Echoing the same view, Dr. Abdul Aziz Al-Shawi, associate professor at Al-Qassim University’s Shariah faculty, said that the new body should take advantage of modern technology to streamline collection and distribution. “The proposed new body can utilize advanced technologies to estimate the property and wealth of both individuals and firms,” he said.

He added that economists, experts and scholars could be consulted through conferences, seminars and workshops held in conjunction with universities, financial consultancy firms, and research centers within the Kingdom and abroad.

Shawi also underlined the need for a statistical report on the financial position and living standards of people in the Kingdom and a list of people who are eligible to receive zakat. He added that one of the primary goals of zakat is to ensure people are financially self-reliant.

“The reorganized zakat body should invest surplus amounts of money into mega-development projects. This would help the body play a vital role in the Kingdom’s development rather than just being a mere department that collects and distributes money.

Dr. Saleh Al-Tuwaijri, a lecturer at Al-Qassim University, spoke about the importance of transforming the Zakat Department into an independent body with vast powers that would be directly accountable to the Kingdom’s rulers.

Ibrahim Al-Moshaigeh, another professor at Al-Qassim University, echoed similar views. He said that zakat should not be individually distributed but needs to be distributed in conjunction with the Kingdom’s rulers.

“The proper implementation of zakat would lead to prosperity and the alleviation of poverty,” he said.

Al-Moshaigeh urged the authorities to bring all real estate owners under the purview of the zakat system. “The Kingdom is witnessing a boom in the real estate sector. However, many real estate owners are not paying zakat,” he said.

On his part, Saleh bin Ibrahim Al-Soraikh, director general of the Zakat and Revenue Department in Al-Qassim region, said that the department is working hard to introduce modern technology.

“An e-governance system has been introduced in all of the department’s branches across the Kingdom. We’re striving hard to establish a system that would lead to electronically linking everyone who needs to pay zakat to the department,” he added.