President Ratifies Zakat Act Establishing Legal Framework for Maldives’ Zakat System

President Dr Mohamed Muizzu ratified the Zakat Bill today, which was passed by the parliament last Wednesday.

The Act will come into effect on 1 January 2026.

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The legislation establishes a comprehensive legal framework to govern the payment, receipt, and distribution of Zakat in the Maldives, ensuring that the system operates in accordance with Islamic principles.

A central feature of the Act is the creation of a Zakat Fund to safeguard contributions, distribute them to eligible beneficiaries, and invest funds in compliance with Shariah. The Fund will be held in a dedicated account with the Maldives Monetary Authority, separate from public accounts, with the Authority serving as custodian. All monies previously held under the Zakat Fund established by the Public Finance Act (Act No. 3/2006) will be transferred to the new Fund.

The President, acting on advice from the Minister responsible for Islamic affairs, will determine national Zakat policies and establish a Zakat Council to advise the Minister and the Maldives Zakat House on administration. With the Act in force, the Maldives Zakat House will become a government agency under the Ministry, with all responsibilities, assets, and budgets transferred to the new agency. A Shariah Advisory Committee appointed by the President will provide guidance and oversight for the system.

Article 49 of the Act outlines offences under the law, including the misuse of Zakat funds, distributing Zakat to ineligible beneficiaries, or diverting funds for purposes not specified in the Act. Violations carry fines ranging from MVR 1,000 to MVR 100,000.

The Bill has been published in the Government Gazette, signalling the formal start of the Maldives’ regulated Zakat system from 1 January 2026.