The Federal National Council (FNC) passed a draft law on the National Zakat Platform to regulate the collection, distribution, and management of zakat, according to an FNC statement.

A new platform: A National Zakat Platform will be established and include data on authorized entities, eligible categories, percentage allocations, and information on zakat funds. All zakat-related transactions will be made through the platform, and distributions heading outside of the UAE require submitting a special request.

Stricter penalties: The new law stipulates fines of between AED 100k and 1 mn, and imprisonment, for infringements of the new law as the government pushes for more transparency surrounding zakat.

Investing surplus zakat: The new law requires proof of a surplus of zakat, as well as an absence of alternative eligible categories, to greenlight investing the funds.

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