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.



Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.