Saudi Arabia Automates ‘Zakat al-Fitr’ to Maximize Economic, Social Impact

A team from Saudi Arabia’s Ministry of Commerce inspects rice sales outlets, one of the main commodities for Zakat al-Fitr. (SPA)
A team from Saudi Arabia’s Ministry of Commerce inspects rice sales outlets, one of the main commodities for Zakat al-Fitr. (SPA)
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Saudi Arabia Automates ‘Zakat al-Fitr’ to Maximize Economic, Social Impact

A team from Saudi Arabia’s Ministry of Commerce inspects rice sales outlets, one of the main commodities for Zakat al-Fitr. (SPA)
A team from Saudi Arabia’s Ministry of Commerce inspects rice sales outlets, one of the main commodities for Zakat al-Fitr. (SPA)

Saudi online platforms are making it easier for Muslims to pay Zakat al-Fitr as Islam’s holy month of fasting, Ramadan, wraps up.

This mandatory contribution of food or money before Eid al-Fitr prayers helps the needy and ensures fair distribution. Eid al-Fitr begins on Wednesday.

Experts speaking to Asharq Al-Awsat confirmed that these digital services meet people’s needs efficiently and securely, providing a trusted way to fulfill Zakat al-Fitr.

Dr. Mohammed bin Duleim Al-Qahtani, an economic analyst and academic at King Faisal University, highlighted Saudi Arabia’s move toward automating its operations, including charity distribution, via platforms like “Ehsan.”

This ensures speedy and fair delivery of Zakat al-Fitr to needy families.

Al-Qahtani stressed that government oversight of e-payments and local markets helps stabilize prices and ensures fair distribution of funds.

The analyst also noted that 80% of Saudis prefer electronic Zakat payments for its efficiency and fairness.

The average contribution is around SAR 21 per person, totaling about SAR 315 million ($84 million) annually, benefiting some 52,000 needy families.

Dr. Salem Bajaja, an academic at King Abdulaziz University, highlighted the government’s efforts through the Zakat, Tax, and Customs Authority to encourage timely and proper Zakat payments, including Zakat al-Fitr, using the Ehsan platform.

He noted that this ensures that Zakat reaches the right beneficiaries, as outlined in the holy Quran.

The Ehsan platform recently began digital collection of Zakat al-Fitr in April, ensuring its distribution to recipients across the Kingdom.

Zakat al-Fitr payments are part of the National Charity Campaign’s fourth edition, aiming to empower society and fulfill religious duties. Through the Ehsan platform, donors specify recipients and regions for distribution.

The Ehsan platform promotes humanitarian values and transparency in charitable work. It also aids non-profit organizations in resource development and facilitates donations.



Gold Extends Slide to 1-week Low on Curbed Safety Demand, Stronger Dollar

A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
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Gold Extends Slide to 1-week Low on Curbed Safety Demand, Stronger Dollar

A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo
A view shows an ingot of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk/File Photo

Gold prices extended declines on Tuesday, hitting a more than one-week low, pressured by a jump in US dollar and easing safe-haven demand after reports of a possible Lebanon-Israel ceasefire.

Spot gold was down 0.4% at $2,614.56 per ounce as of 0845 GMT, after hitting its lowest since Nov. 18 earlier in the session. US gold futures edged 0.1% lower to $2,614.80, Reuters reported.

The precious metal fell 3.2% on Monday, its deepest one-day decline in more than five months, on news that Israel looked set to approve a US plan for a ceasefire with the Iran-backed Hezbollah, with further pressure from Trump's nomination of Scott Bessent as the US Treasury secretary.

Meanwhile, the Kremlin said it had noted that Trump's circle was speaking about a potential peace plan for Ukraine.

"This has reduced the geopolitical risk premium, leading to a decline in gold prices," said Soni Kumari, a commodity strategist at ANZ, adding that a stronger US dollar is also weighing on investor appetite for gold. The dollar was up by 0.3%, after US President-elect Donald Trump vowed tariffs against Mexico, Canada and China, reducing gold's appeal for holders of other currencies.

"So now the focus will shift back to, what Fed is going to do in December meeting," Kumari said. Federal Reserve Bank of Minneapolis President Neel Kashkari, typically on the hawkish end of the US central bank's policy spectrum, said he is open to cutting rates again next month.

Traders will also keep a close eye on US consumer confidence data and the minutes from the Fed's November meeting later in the day.

"I expect gold to trade in a narrow range in the short term, with a slight upward drift," Matt Simpson, a senior analyst at City Index said.

Spot silver slipped by 0.1% to $2,614.80 per ounce, platinum shed 1.1% to $928.40 and palladium was down 0.2% to $971.10.