Purification of Wealth in Islam

-Zakat-

Wealth in Arabic is known as Al –Ghina, which means “no need or need less “and wealthy is known as al-ghaniyu meaning self sufficient. As Allah says,” To Him belongs all that is in heaven and on the earth for verily God – He is free of all wants, worthy of all praise “(Qu’ran 22.64). Another verse ALLAH says,” Thy Lords is self sufficient, full of mercy (Qur’ an 6:133).  From the two verses in can be derived that wealth in Islam consists of two elements of life, the physical and the spiritual.  The first dimension represents the possession of material which is known as “Maal”, basically means ‘property, assets or whatever mankind possesses. The second one indicates a spiritual dimension of mankind such as knowledge or virtue that resides in their souls.

 

The first dimension of wealth such as property or assets or other valuable things may be used to gain the second dimension of wealth, which is knowledge and virtue, through education and training. Knowledge may also bring in the first dimension of wealth. Knowledge will lead to a profession, and bring more wealth to mankind.

 

One of the most important principles of Islam is that all things belong to God, and that wealth is therefore held by human beings in trust, therefore all wealth belong to Allah and man is only a trustee, as The Quran says ‘To Him (God) belongs that is the heaven and all that is on the earth, and all that is between them, and all that is under the soil”. The Quran further says “and give them something out of the wealth that God has bestowed upon you”. (Quran 24:33). This means that it is God who owns the wealth and that the wealth has been bestowed by Him. God is the absolute owner and man is just a trustee.   This trust requires man to carry out the duties placed on him by Allah as His vicegerent on earth and assume accountability concerning them.

 Islam provides guideline on how Muslims should spend their wealth while they are alive and how it should be distributed when they pass away. In that sense, wealth would be blessed, which brings benefits to oneself and others: as the Prophet Muhammad (PBUH) said “the upper hand is better than the lower hand”. The upper hand is the hand that gives benefit to others whereas the lower hand is the hand that receives. In Islam wealth is vital to enhance and develop the economic system. With wealth Muslims will able to serve ALLAH through giving alms or Zakat (one method of wealth purification). The Prophet (PBUH) said: ‘Blessed is the wealth of a Muslim from which he gives to the poor, the orphans and the needy travelers”. Islam has always emphasized the significance of attaining ALLAH Blessings by giving to others.

 

 The word Zakat means both 'purification' and 'growth'. Our possessions are purified by setting aside a proportion for those in need, and, like the pruning of plants, this cutting back balances and encourages new growth. 

 

 Zakat is a type of wealth which is only obligatory on certain kinds of wealth, such as:

1-     An’aam livestock (camels, cattle and sheep)

2-     Gold and silver and, nowadays, paper currency

3-     Trade goods

4-     What is produced by the earth, which includes two things:

a.      Crops and fruits. The scholars are unanimously agreed that it is obligatory to pay zakat on four kinds: wheat, barley, dates and raisins; they differed with regard to other kinds.

b.     Rikaaz (buried treasure), i.e., wealth of the kuffaar buried in the ground that is found by a Muslim. 

 

Shaykh al-Islam Ibn Taymiyah (may Allah have mercy on him) narrated in Majmoo’ al-Fatwa (25/10) that Ibn al-Mundhir (may Allaah have mercy on him) said: 

The scholars are unanimously agreed that zakat is obligatory on nine things: camels, cattle, sheep, gold, silver, wheat, barley, dates and raisins, if they reach the nisab (minimum threshold) for each type at which zakat becomes due. Zakat for each of these kinds of wealth is obligatory subject to certain conditions, and a specific amount of the wealth must be given as defined by the principle of shariah. 

There are eight categories of people who may receive the collected Zakat: This category of people is defined in surah at-Taubah (9) verse 60:
" The alms are only for the poor and the needy, and those who collect them, and those whose hearts are to be reconciled, and to free the captives and the debtors, and for the cause of Allah, and (for) the wayfarers; a duty imposed by Allah. Allah is knower, Wise." 

The eight categories /asnafs are:

1. The Poor (Wal Masakin)– those people who do not have enough to cover their basic needs and have no sufficient amount for their subsistence and their dependents. They do not have the opportunity of employment according to their status through which they can earn their living. The students, researchers and scholars can also be helped by

Zakat if they are unable to continue their work du to financial constraints. For those who can not marry due to financial problems can also be helped by Zakat.

2. The Destitute (Fuqara) -Those with no property or income at all and have nothing for their subsistence and basic necessities of life.

3.The Zakat Collectors and Administration (Amil)– to pay expenses for Zakat collection, administration and development to ensure that the Zakat programs can be carry out efficiently and effectively.

4.The new Converts (Muallaf)-Normally new Muslims or those close to becoming Muslim. The Zakat fund can be used to help the men and women who have been weaned from hostility to Islam, who would probably be persecuted by their former associates, and require assistance until they establish new connections in their new environment.

5. Freeing Slaves – (Al-Riqab) Islam took various measures for uprooting the system of slavery, and the zakat fund can be used to free a Muslim from very oppressive conditions and to free a Muslim who’s trapped in prostitution.

6. Debtors-to help those heavily indebted with paying their debts with Zakat funds if a person can not pay his debt by his own earning he will be helped by Zakat.

7. In the way of Allah or fi sabillillah – to pay the activities of Dakwah, seminars and workshop carried by universities, schools and associations that help to develop Muslims.

8. Traveller (Ibnu Sabil) - who finds themselves in difficult circumstances during their journey, the Holy Qur’an urged Muslim to take care of the stranded travelers.

Zakat doesn’t become obligatory on a Muslim if he doesn’t have a minimum amount in his possession that has remained unchanged for a whole lunar year; any increase in that money during the year waits for the following year and any decrease as along as the total amount is still above the minimum amount is exempted.

 

Written by Nibrasul Huda Ibrahim Hosen

References: INCEIF 2006 –Wealth and Planning Management.