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Zakat 'Nafaa' Program guidelines announced

Mohamed Rehan
06 November 2022, MVT 16:49
An individual paying Zakat during 2022 zakat period; Ministry of Islamic Affairs announced Zakat 'Nafaa' Fund to facilitate economic empowerment for low income earning or poor families-- Photo: Fayaz Moosa | Mihaaru
Mohamed Rehan
06 November 2022, MVT 16:49

The guidelines of Zakat 'Nafaa' ("benefit") Program have been announced. The program aims to fund local families up to MVR 150,000.

The initiative was launched by Ministry of Islamic Affairs and Ministry of Economic Development, earlier on February 28, 2022. Under the initiative poor families and families with financial shortages will be assisted.

According to the regulations, apart from a financial aid of MVR 150,000 to economically constrained families, SME fund financial instruments can be facilitated at zero-interests with a repayment plan for families that are in need of loan instruments.

The financial instruments will be facilitated for families registered with Ministry of Islamic Affairs as economically poor families.

The regulations highlighted management, vetting, and funding procedures along with explanations of the phases the initiative will be carried out in. Meanwhile, Ministry of Islamic Affairs signed with all relevant parties on Sunday, November 6, to commence the initiative.

A special steering committee must be created to ensure management of the initiative. Members of the committee will be responsible with regulatory responsibilities, overseeing protocols and procedures. The committee consists of;

- Three members from Ministry of Islamic Affairs

- Two members from Ministry of Economic Development

- One member from Maldives Fund Management Corporation

- One member from SME Development Finance Corporation

- One member from Business Center Corporation; and,

- One member from Agro National Corporation

The committee's chair and vice-chair will be appointed by Ministry of Islamic Affairs by discussing it with Ministry of Economic Development.

Areas of assistance under the Zakat 'Nafaa' Fund

- Housing

- Poultry farming

- Hydroponic agriculture

- Reef fishing

- Tailoring

- Training / on-the-job training / apprenticeship

Additional to these, the steering committee under its discretion has authority to specify other areas to aid. All funding areas must be legitimate or legally accepted ventures in accordance to Islamic Shari'ah.

The five-year program aims to economically benefit families with low income earning, and facilitate them with further stability.

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