Investing zakat funds : between legitimacy and prohibition

Abstract

Since investment is an important issue and is closely linked to Zakat, which is one of the pillars of Islam and one of its fundamental obligations, it is essential to examine the nature of this obligation and clarify its legal ruling under Islamic law. This is followed by an exploration of the concept of investment and its relationship to wealth, particularly Zakat funds, through an analysis of the relevant Islamic legal evidence, the objectives of Sharia (Maqasid al-Sharia), and the jurisprudential rulings governing investment. This study also examines and compares the various juristic opinions related to the subject in order to determine the Islamic legal ruling on investing Zakat funds for the benefit of eligible recipients through the authority of the ruler or his authorized representative. It seeks to establish whether such investment is permissible and legitimate, or whether Zakat funds should be exempt from such practices due to considerations such as the requirement for their immediate distribution. Furthermore, the study investigates whether Zakat funds may be utilized as a source of financing for investment projects intended to benefit the poor and achieve the objectives of Zakat, provided that such investments do not contradict any explicit Islamic legal text. It also emphasizes the necessity for the ruler or the responsible authority to adhere to a set of specific conditions and regulations governing such investments. Finally, the study evaluates and weighs the different juristic opinions, adopts the strongest view based on comparative analysis, and concludes with a number of findings and recommendations.