Author: Ahmed Ashour
The UAE has recently enacted Federal Decree-Law No. 4 of 2025 regarding the National Zakat Platform, introducing a new federal framework governing the collection, receipt, distribution, disbursement and investment of Zakat funds within the State. The law was published in the Official Gazette and enters into force three months from the date of publication.
As part of the UAE’s ongoing efforts to strengthen governance, transparency and social solidarity, the law introduces clear permitting requirements, standardised procedures, digital documentation and robust financial audit mechanisms. These measures aim to safeguard Zakat funds from misuse, ensure compliance with Shari’ah principles and reinforce public trust in Zakat institutions.
The framework represents a significant development in the regulation of Zakat activities in the UAE and directly affects all entities involved in collecting or distributing Zakat.
The law establishes the National Zakat Platform as a unified digital system operated by the competent authority. The platform functions as the central mechanism through which all Zakat-related activities must be recorded, monitored and managed.
In particular, the platform enables the authority to:
All Zakat-related financial transactions must be conducted through approved systems and procedures and must be fully documented on the platform.
Any entity seeking to collect or distribute Zakat must obtain a Zakat Permit. To qualify, the entity must:
Permits are issued for a period of one year and are renewable annually.
Authorised entities must comply with a range of ongoing obligations. In particular, they must:
The law mandates the introduction of a Unified Zakat System designed to standardise Zakat practices across the UAE. This includes:
These measures promote consistency, transparency and accuracy in Zakat calculation and reporting.
As a general rule, Zakat funds may not be distributed outside the UAE. The law permits limited exceptions in exceptional humanitarian circumstances, such as natural disasters.
In such cases, the authorised entity must obtain approval through the National Zakat Platform and coordinate with the relevant authorities before distributing Zakat outside the State.
The law permits the investment of surplus Zakat funds, subject to strict conditions. An authorised entity must demonstrate that a genuine surplus exists and that no eligible beneficiaries within the State are available to receive the funds.
Any investment must be strictly Shari’ah-compliant, low-risk and consistent with the nature and purpose of Zakat. All profits generated must be distributed in full to eligible beneficiaries, without any deduction by the authorised entity or the competent authority. All investment activities must be fully documented on the National Zakat Platform.
The law allows administrative deductions within clearly defined limits. The competent authority may allocate up to 5% of Zakat funds to cover its administrative costs. Authorised entities may deduct additional amounts to cover approved administrative and support expenses.
In all cases, the combined total of administrative deductions must not exceed 12.5% of total Zakat funds.
All data recorded on the National Zakat Platform is treated as strictly confidential. Disclosure is permitted only for purposes related to implementation of the law, in accordance with applicable legislation, or pursuant to a judicial order.
To ensure effective oversight, authorised entities must:
The law also provides that all Zakat-related transactions are fully exempt from fees, including judicial fees and expenses relating to lawsuits connected to Zakat funds.
The law introduces strict and proportionate penalties, including:
Entities licensed under Federal Law No. 3 of 2021 must obtain a separate Zakat Permit to engage in Zakat-related activities and must comply fully with this law.
Federal Decree-Law No. 4 of 2025 establishes a clear, unified and transparent framework for the governance of Zakat in the UAE. Through a centralised digital platform, strict permitting requirements, standardised procedures and robust oversight mechanisms, the law strengthens accountability, safeguards Zakat funds and reinforces public trust.
For authorised entities, compliance with this new framework is not optional. Early review of governance structures, operational processes and reporting systems will be essential to meeting regulatory expectations and fulfilling Zakat’s humanita
Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.rian and religious purpose in accordance with the law.
The UAE has recently enacted Federal Decree-Law No. 4 of 2025 regarding the National Zakat Platform, introducing a new federal framework governing the collection, receipt, distribution, disbursement and investment of Zakat funds within the State. The law was published in the Official Gazette and enters into force three months from the date of publication.
As part of the UAE’s ongoing efforts to strengthen governance, transparency and social solidarity, the law introduces clear permitting requirements, standardised procedures, digital documentation and robust financial audit mechanisms. These measures aim to safeguard Zakat funds from misuse, ensure compliance with Shari’ah principles and reinforce public trust in Zakat institutions.
The framework represents a significant development in the regulation of Zakat activities in the UAE and directly affects all entities involved in collecting or distributing Zakat.
What is the National Zakat Platform?
The law establishes the National Zakat Platform as a unified digital system operated by the competent authority. The platform functions as the central mechanism through which all Zakat-related activities must be recorded, monitored and managed.In particular, the platform enables the authority to:
- Register authorised entities;
- Record eligible beneficiaries and approved allocation percentages;
- Track Zakat funds collected and distributed; and
- Document all related financial and operational data.
All Zakat-related financial transactions must be conducted through approved systems and procedures and must be fully documented on the platform.
Key conditions for obtaining a Zakat permit
Any entity seeking to collect or distribute Zakat must obtain a Zakat Permit. To qualify, the entity must:
- Hold a valid licence to operate in the UAE;
- Submit a compliant Zakat collection and distribution plan;
- Demonstrate compliance with applicable accounting and Shari’ah standards;
- Open a dedicated Zakat bank account with a national bank; and
- Satisfy any additional conditions imposed by the competent authority.
Permits are issued for a period of one year and are renewable annually.
Obligations of authorised entities
Authorised entities must comply with a range of ongoing obligations. In particular, they must:
- Register on the National Zakat Platform;
- Verify that beneficiaries are not linked to prohibited or terrorist lists;
- Ensure that Zakat reaches eligible recipients and retain proof of disbursement;
- Disburse Zakat exclusively through approved banking or digital channels;
- Verify beneficiary identity and eligibility through appropriate social assessments;
- Maintain accurate electronic accounting records; and
- Notify the competent authority of any legal or structural changes within thirty (30) days.
The unified Zakat system
The law mandates the introduction of a Unified Zakat System designed to standardise Zakat practices across the UAE. This includes:
- Uniform criteria for calculating Zakat, including Nisab and Hawl;
- Standardised Zakat declaration templates; and
- The potential mandatory use of electronic and digital payment methods.
These measures promote consistency, transparency and accuracy in Zakat calculation and reporting.
Distribution of Zakat outside the UAE
As a general rule, Zakat funds may not be distributed outside the UAE. The law permits limited exceptions in exceptional humanitarian circumstances, such as natural disasters.In such cases, the authorised entity must obtain approval through the National Zakat Platform and coordinate with the relevant authorities before distributing Zakat outside the State.
Investment of surplus Zakat funds
The law permits the investment of surplus Zakat funds, subject to strict conditions. An authorised entity must demonstrate that a genuine surplus exists and that no eligible beneficiaries within the State are available to receive the funds.Any investment must be strictly Shari’ah-compliant, low-risk and consistent with the nature and purpose of Zakat. All profits generated must be distributed in full to eligible beneficiaries, without any deduction by the authorised entity or the competent authority. All investment activities must be fully documented on the National Zakat Platform.
Administrative deductions
The law allows administrative deductions within clearly defined limits. The competent authority may allocate up to 5% of Zakat funds to cover its administrative costs. Authorised entities may deduct additional amounts to cover approved administrative and support expenses.In all cases, the combined total of administrative deductions must not exceed 12.5% of total Zakat funds.
Confidentiality, oversight and fee exemptions
All data recorded on the National Zakat Platform is treated as strictly confidential. Disclosure is permitted only for purposes related to implementation of the law, in accordance with applicable legislation, or pursuant to a judicial order.To ensure effective oversight, authorised entities must:
- Submit audited annual Zakat accounts;
- Maintain full separation between Zakat funds and other financial accounts; and
- Record final audit results on the National Zakat Platform.
The law also provides that all Zakat-related transactions are fully exempt from fees, including judicial fees and expenses relating to lawsuits connected to Zakat funds.
Penalties for violations
The law introduces strict and proportionate penalties, including:
- Imprisonment and/or fines of up to AED 1,000,000 for unlawful collection or distribution of Zakat;
- Fines ranging from AED 100,000 to AED 1,000,000 for violations by authorised entities;
- Imprisonment and fines for obtaining Zakat using false or forged documents; and
- Extension of liability to directors, managers and employees involved in the offence.
Entities licensed under Federal Law No. 3 of 2021 must obtain a separate Zakat Permit to engage in Zakat-related activities and must comply fully with this law.
Conclusion
Federal Decree-Law No. 4 of 2025 establishes a clear, unified and transparent framework for the governance of Zakat in the UAE. Through a centralised digital platform, strict permitting requirements, standardised procedures and robust oversight mechanisms, the law strengthens accountability, safeguards Zakat funds and reinforces public trust.For authorised entities, compliance with this new framework is not optional. Early review of governance structures, operational processes and reporting systems will be essential to meeting regulatory expectations and fulfilling Zakat’s humanita
Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.rian and religious purpose in accordance with the law.