Funds of the Khilafa State - System Of Islam

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Funds of the Khilafa State (31)

Bismillah Ar-Rahman Ar-Raheem As Islam, with which Allah (swt) to His Messenger Muhammad (saw) (saw) , is a system of life, and a message for the whole world, it is absolutely necessary for it to have a State which implements it and carries it to the world. Islam has made this State the Khilafah State, and made it of a distinct form and a unique structure which differs from the structure of all the States in the world. It is different in its pillars upon which it is established, in the structures that it is formed of, in its constitution and laws that are taken from the Book of Allah (swt) and the Sunnah of His Messenger (saw) which are obligatory for the Khalifah and the Ummah to adhere to, implement and restrict themselves to, because they are from the Shar'a of Allah (swt) and not from the legislation of the people. Islam has entrusted the Khilafah State with the duty of taking care of the affairs of the Ummah, and entrusted it to be in charge of administering the funds received by the State and their expenditure such as to look after the affairs of the people of the citizens and the carrying of the Da'wah. The divine evidences have explained the sources of the State's financial revenues, their types and how they are collected, in the same way they clarified the beneficiaries of these funds and the areas over which they are spent.

We discuss in this book 'The Funds in the Khilafah State' and their rules. We explain their sources and types, from where they are collected, the time of their collection and the way they are collected, and the sections in which they are kept. We also explain those who are entitled to these funds and the areas of their expenditure.

Since the record of these funds and their collection requires the knowledge of the lengths, areas, measures and weights, we address that so as to become quite clear in a way that determines their reality and removes any vagueness about them. We evaluate these funds in lengths, areas, measures and weights that are used today, so that they are easily followed and fairly understood, far from any complications.

Since the monetary aspect has a special importance in the funds of the Khilafah State, because it is linked to the divine rules, we address it and explain its reality, the basis upon which it is established, the units that are related to, together with their weights, and also the problems faced and the way of solving these problems.

The rules of the funds of the Khilafah State are derived from the Qur'an and the Sunnah, after study and scrutiny of the sayings of the Sahabah, the Tabi'een (the followers) and their followers and the opinions of the Mujtahideen. All this is done based on the evidences proven to be the strongest in our view; for the divine rules are adopted based on the least amount of doubt (Ghalabat uz-Zun) without the stipulation of the evidences being definitive as is required when establishing the creed.

We ask Allah (swt) to help us and make it easy for us to put these rules into application in the coming Khilafah State. Indeed He is our protector (Mawla), and indeed He (swt) is the best protector and the best Helper.

16 Rabi'a Thani 1402 Hijra 20th February, 1982

The Author 1

30 Issuing Currencies

Each State adopts a specific unit of something, making it the basis to which goods and labour are related and by which they are measured. It coins the unit in a specific form and fashion which are specific to it along with a fixed weight and value. Societies have, from the earliest times, made this measuring unit from things with intrinsic value. They adopted gold and silver as a measure to which all goods and labour are related, because gold and silver have intrinsic value in the whole world. They coined currency pieces from them with a specific form and fashion as well as a specific and fixed weight and value.

The State which adopts gold or silver units as the basis for its currency follows the metallic system. If it makes the gold unit the basis for its currency which it coins as currency for itself, then it follows the gold principle or gold Standard. If it makes the silver unit the basis of its currency which it coins as its currency, then it follows the silver standard. If it makes the gold unit and silver unit-beside each other-as the basis for its currency which it coins as its currency, then it follows the gold and silver principle or the bimetallic standard.

As for the State which adopts paper currency as its currency such that goods and labour are exchanged with it, it follows the paper currency standard. If the paper it prints, as money and currency is representative of gold or silver, the State follows the representative paper currency standard. If the paper it prints and makes as its currency has gold or silver backing equal to a specific proportion of its value, it follows the paper currency standard of the secured type.

If the currency it prints, issues and makes as its money and currency is not a substitute for gold or silver, nor backed by gold or silver, the State is considered to be following the compulsory paper currency standard.

The Roman State adopted the fixed unit of gold with defined weight and value as the basis of its currency. It coined on this basis a unit piece of gold currency in a specific form and fashion, engraved with a specific inscription. It made this gold coined piece its money and currency, and submitted it for circulation, thereby adopting the gold principle in issuing its currency. It thus followed the golden ingots standard.

As for the Sassanid State, it adopted the silver unit as the basis of its currency. It made it of three weights, coining upon the basis of these weights silver Dirhams of specific form and fashion engraved with specific inscriptions. It made these silver coined pieces its money and currency, submitted them for circulation, thereby adopting the silver principle. It thus followed the silver ingots standard.

As for Muslims, they adopted the gold unit and silver unit as the basis for their money and currency. They utilised them together, except that they took Byzantine Dinars and Chosroes Dirhams as their money without coining their own specific money from the time of the Messenger (saw) and the Khulafa’a after him until the period of Abdul Malik bin Marwan. In his time, Abdul Malik bin Marwan minted specific Islamic currency, making it in specific form and fashion. He engraved it with a specific inscription and established it upon the gold and silver unit according to the weights of the Shari’ah Dinar and Dirham. The Muslims thereby proceeded on the gold and silver standard i.e. the bi-metallic principle. In the last days of the Abbassids, and the period of the Attabika in Egypt, Muslims coined, beside the gold and silver, copper currency to buy trivial things because copper’s intrinsic value is low. It was not representative of gold and silver; rather it stood on its own depending upon its value as copper. Since gold and silver became scarce in the Attabika period, they began buying all goods, whether expensive or cheap, with copper currency.

The world continued following the gold and silver principle based on the standard of ingots until the beginning of the 20th century. Each State would coin its own gold or silver currency in its own specific form and fashion, with specific fixed value or weight, until the major colonialist States abandoned the gold and silver principle just before World War I and adopted the compulsory paper money as their currency.

This is the reality of issuing currency, the reality of what Muslims followed in adopting and issuing currency and the reality of the Shari’ah rule regarding its issuing.

Therefore, Muslims must have gold and silver as their currency and the Khilafah State must make its currency of gold and silver. It must follow the gold and silver principle i.e. bi-metallic standard, as was the case in the days of the Messenger of Allah (saw) and the Khulafa’a after him. It must coin golden Dinars and silver Dirhams from the pure gold and silver material and with high value. It must make Dinars and Dirhams in a specific form and Islamic fashion unique to the Khilafah State, making the gold Dinar’s weight as that of the Shari’ah i.e. the Mithqal’s weight. Hence it should coin the Dinar as 4.25 grams for one Dinar which is the Dinar’s weight. It should make the silver Dirham’s weight the weight of the Shari’ah Dirham which is known as the weight of seven, i.e. 10 Dirhams weigh 7 Mithqals, and so it coins Dirhams as 2.975 grams for one Dirham.

It is possible for the State to coin gold Dinars, its parts and multiples in the following form:

Coins

Weight in Grams

1. One-quarter Dinar

2. One-half Dinar

3. Dinar

4. 5 Dinars

5. 10 Dinars

6. 20 Dinars

1.0625 g, the weight for which the thief ’s hand is cut.

2.125 g, the obligatory amount taken from

the Nisab of Zakat.

4.25 g

21.25 g, a quarter of the Nisab of Zakat

42.5 g, half of the Nisab of Zakat

85 g, the Nisab of Zakat

Using this form, it can coin pieces in the weight of the Nisab of Zakat, the Dinar’s weight which is the basis of weight in gold, the weight of one-half Dinar which is the obligatory amount taken from the Nisab of Zakat, and a quarter-Dinar piece which is the amount for which the thief ’s hand is cut.

The State can also coin silver Dirhams, its parts and multiples in the following form: Coins Weight in Grams 1. One-half Dirham 1.4875 g 2. Dirham 2.975 g 3. 5 Dirhams 14.675 g, the obligatory amount taken from the Nisab of silver 4. 10 Dirhams 29.75 g 5. 20 Dirhams 59.5 g

Coins

Weight in Grams

1. One-half Dirham

2. Dirham

3. 5 Dirhams

4. 10 Dirhams

5. 20 Dirhams

1.4875 g

2.975 g

14.675 g, the obligatory amount taken from the Nisab of silver

29.75 g

59.5 g

The State can also coin units smaller than that of silver to help obtaining trivial things. Since the silver contained in these silver units is little and it is difficult to deal with them as they are pure coins, specific portions of different valueless metals can be added to them. However, the proportion of silver in weight used in these coined units must be clarified in a manner preventing any confusion over it.

The Khilafah State must endeavour to bring the world back to deal with gold and silver to prevent a state like America from dominating world currency such that she plays with it according to her specific interests.

The Standard Measure of Gold and Silver

The Islamic State throughout its years preserved the standard measure of gold and silver so that they remained free of any impurity. It ensured it was kept completely pure so that they were of high standard measure. It used to prevent adulteration of gold and silver, implementing punishment on all who adulterated Dinars and Dirhams.

Therefore, gold Dinars and silver Dirhams must be pure without mixing them with any other metal and its adulteration must be prevented. Punishment must befall all who mix it with any other metals as this is fraud and fraud is prohibited. The Messenger of Allah (saw) said: “He is not one of us who deceives” and in another narration: “He who deceives us is not one of us.”

The Ratio of Gold to Silver

The Khilafah State must leave the exchange ratio between gold and silver without any restriction. Gold should be exchanged with silver, and silver with gold at the current market price according to supply and demand as was the case at the time of the Messenger of Allah (saw) and the Khulafa’a after him. The Messenger of Allah (saw) did not determine a specific ratio between gold and silver nor obliged a specific exchange price between them. He left Muslims to buy silver with gold and gold with silver as they wished, hand to hand, without imposing a specific ratio between them. He said: “Trade gold with silver as you wish, hand to hand.” Ibn ‘Umar said: “I used to sell camels in Baqi’. I sold with Dinars and took Dirhams and I sold with Dirhams and took Dinars, taking this for that and giving this for that. I came to the Prophet (saw) when he was at Hafsa’s house and said: ‘O Messenger of Allah (saw), Will you please wait so that I ask you. I trade camels in Baqi’, I trade with Dinars and take Dirhams and I trade with Dirhams and take Dinars, taking this for that and giving this for that.’ The Messenger of Allah (saw) said: ‘There is nothing wrong if you take its price of the day as long as you do not depart from each other where something is still left between you.’”

This is not buying gold for gold and silver for silver, a trade in which equivalence is obliged. “like for like” and “hand to hand.” He said: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates and salt for salt, like for like and hand to hand. Whoever increases or asks for increase has taken riba in which the taker and giver are the same (in sin)” narrated by Muslim.

The ratio between gold and silver changes and is not fixed, depending upon the abundance or scarcity of gold and silver metals and upon supply and demand. The ratio in the days of the Messenger (saw) was around 10:1, in the days of ‘Umar 12:1 then 14:1, and in 1971 it reached 45:1 then, a few months afterwards, 16:1. So the ratio between them is not fixed. Therefore restricting the exchange between gold and silver with a specific and fixed ratio is harmful because if the exchange price between gold and silver is fixed by a restricted statutory proportion, then it will be subject to difference between the statutory value and market value. If this difference occurs, within the State or in foreign markets, it will lead to hiding the currency whose price has risen and smuggling it overseas in case the external market value is higher than the internal statutory value.

The Benefits of the Gold and Silver Standard

When gold and silver were the currency circulating in the world, there were no currency problems at all. Currency problems did not arise except after the world abandoned the gold and silver system when the colonialist states invented colonialist economic and financial styles to consolidate their dominance over the world. They took currency as a means of colonisation and abandoned the gold and silver standard. They changed currency to other standards in which they gave consideration to bank deposits and compulsory currency that does not depend on gold and silver as currencies. They started to play with world currency according to their interests thus creating currency crises and economic problems. They increased the issuing of compulsory currency which created great inflation in currency, thus leading to decline in the purchasing power of currency. All this is due to abandoning the gold and silver standard.

The gold and silver is the only standard principle of eliminating this currency problems and the severe inflation which has spread throughout the world. It would create currency stability and steadiness in the currency exchange prices and advance of international trade. This is because the gold and silver standard bears numerous economic advantages such as:

1. The world production of gold and silver as commodities depends on the costs of exploration and mining, and the demand for them against the demand for other goods and services. This does not make the providing of currency to the world at the mercy of the colonialist states as is the case in the paper (currency) standard, a matter which enables states to place currency in the markets as they wish through the method of printing more (currency) whenever they wished to improve the currency and payments balance with other states.

2. The gold and silver does not expose the world to unexpected increase in the circulating currency as it happens with paper currency, thereby giving currency the attributes of steadiness and stability, and increasing confidence in it.

3. The gold and silver standard includes a measure for adjusting the imbalance in the payments between countries spontaneously without intervention by the central banks, as happens today whenever an imbalance occurs in the exchange price between world currencies. Increase of imports over exports in a State will increase the other State’s receipt of the state’s currencies and the outflow of gold and silver abroad. This will lead to a decrease in prices domestically, making domestic goods cheaper than the imported ones and resulting in decreasing imports ultimately. Furthermore, the state will fear the loss of its reserves of gold and silver if the imbalance of payments continued.Whereas, in the paper system, the State would resort the printing of paper currency whenever its payments balance is disturbed, for there is no restriction on such issuing, thereby leading to an increase in inflation and a reduction of the purchasing power of currency. As for the gold and silver standard, the State does not have the ability to increase the volume of currency paper as long as this currency paper can be transformed into gold and silver at a particular price. This is because the State fears that increase in it’s issuing can lead to increase in demand for gold such that it becomes unable to meet this demand, or gold flows abroad, thus the State loses its reserves.

4. Since gold is a currency unit that States can’t dominate, this gives it a great advantage in that any quantity of currency in the state is sufficient for what the market needs of currency exchange whether it is a little or a lot, since all goods are priced in exchange with it. So the production of other goods will increase and prices will decrease. Whereas, in the paper standard the increase in currency does not result in this. Rather it leads to reducing the purchasing power of currency, thus leading to inflation. This demonstrates that the gold and silver standard is the one that will put an end to inflation, whereas the paper standard makes it worse.

5. The gold and silver standard is characterised by the fact that the exchange price between different national currencies is fixed since each currency is valued by specific units of gold and silver. Hence the world will eventually have one currency in reality, of gold and silver, even though the currencies differ. The world will then enjoy free trade and movement of goods and wealth between different world States, eliminating the problems of hard currency and coins, thereby advancing international trade, as traders will not fear expanding into international trade as the exchange price is fixed.

6. The gold and silver standard will preserve for each country its gold and silver wealth. Thus the smuggling of gold and silver from one country to another will not arise. The State would not need to supervise the protection of its gold and silver as they will not move out except as prices for goods or wages paid to employees.

All these benefits are realised in a uni-metallic standard, whether gold or silver, or a bi-metallic standard of gold and silver. Moreover, the bi-metallic standard increases the size of the metallic principle which will result in greater total supply of currency, thus enabling the State to easily meet people’s need for currency. This generates greater flexibility and makes the purchasing power of the currency unit and the level of prices favourably disposed to an even greater degree of stability.

These are the merits and benefits of the gold and silver standard. It is not free of problems resulting from world monopoly, customs duty obstacles, concentration of the greater quantity of gold and silver in the treasuries of the super powers and the States which have high production capability and competition in international trade, intelligent scientists, experts and engineers, and because they adopt, at the same time, compulsory paper currency system instead of the gold and silver standard.

In order that the States adopting the gold and silver standard be able to overcome these obstacles and problems, particularly if the world super powers and the States with influence on international trade continued to follow other than the gold and silver principle, they must proceed along the policy of self-sufficiency. Thus they have to reduce their imports and work to exchange the goods they import with their own goods they have rather than with gold and silver. They must also endeavour to sell their goods for the goods they need, or with gold and silver, or the currency they require to import their goods and services.

Moreover, the country following the bi-metallic principle gold and silver should avoid fixing a constant exchange rate between the gold and silver units. They have rather to leave the exchange rate, proceed with the change of prices, because fixing a constant exchange rate between the two units will result in the disappearance from circulation of the currency unit whose market value exceeds its statutory value. This will leave only the cheaper currency unit, because the cheaper currency drives away the valuable currency from circulation.

The Sufficiency of Gold Present in the World

The gold standard is the correct standard preventing governments from issuing quantities of paper currency which has no reserves, thus leading to inflation. The gold system provides a fixed unit for international trade relations which encourage international trade. Is, however, the gold existing in the world sufficient to bring the world back to following the gold standard as in the past? Is it sufficient to provide the money required for trade dealings? Is there enough gold in the Khilafah State to enable it to return to the gold standard? In response to these questions, we say, Yes. The gold existing in the world is enough to return the world to the gold standard and it has sufficient flexibility to produce the money required to cover trade transactions and economic needs in the world, for the following reasons:

1. Throughout human history, no metal has ever enjoyed an interest similar to gold. All that man has mined of gold is being used until today despite having been mined thousands of years ago, since it does not perish leading to its disappearance. Rather, all that occurs is its exchange in the form of currency or jewellery, or using it into some form of manufacturing or re-melting it.

2. Gold in all previous times, up to the end of the 19th century, was sufficient for all trade activities and covering all world economic needs throughout all eras without the occurrence of economic or financial problems. Throughout the 19th century, in which economic growth increased to a great level, the world witnessed a great economic increase and a great reduction of prices and increase in wages without shortage in the quantity of gold currency displayed for use, despite the increased goods and services.

3. That which concerns people is not the real increase in currencies, but rather their purchasing ability. The purchasing ability of gold unit was great, creating steadiness and stability and causing prosperity and bloom. Whereas, the expansion in printing non-representative paper currency was a cause of huge economic and financial problems and the inflation increased resulting in decrease of the purchasing power of paper currency.

4. The economic system in which there are no restrictions like Tas’eer (fixing of prices) or monopoly does not concern itself with the quantity of currency existing in it, since any quantity of currency circulating is good enough to buy the goods and services in the market. Whenever the goods and services existing in the market increase while the quantity of circulating currency remains steady, this leads to making the currency unit capable of buying a greater quantity of goods and services. The opposite is also true i.e. if the quantity of goods and services decreases while the quantity of a currency remains steady, the currency unit’s purchasing ability ie. its ability to buy goods and services, decreases. Whatever the case, the circulating currency may be sufficient for currency exchange, no matter how much of it is in circulation.

5. What appears of visible shortage of gold is only due to the prevailing global inflation. If the world were to return to the gold standard then stability would return to currency prices, thus reducing the avid interest in gold, for gold would no longer be used in trading speculation. It would all be directed to trading transactions and economic needs, for the transactions of trading with gold and speculation with it will stop, as currency price stability will be achieved. This is because currency prices and their relation to each other will be determined by gold, thus making all currencies in the world virtually one currency which will lead to the inability of speculation with it and reduce the profits of trading with gold. This will lead to abundance in gold and its shortage will disappear.

These reasons in general demonstrate how the world can return to the gold standard, and how the gold existing in the world can fulfil currency need, cover the trading transactions and provide the required funds for economic needs.

As for the Khilafah State, whatever applies to other States also applies to it. So the above mentioned reasons demonstrate its ability to return to the gold standard. There are abundant quantities of gold present in the Islamic countries, accumulated in their banks and treasuries, completely sufficient to enable the Khilafah State to return to the gold standard. This is without even mentioning the quantities of silver in the Islamic countries, which will be a principal unit of currency in the Khilafah State’s together with the gold unit. This is because the Khilafah State currency is based upon the standard of gold and silver and upon the bi-metallic standard in relation to currency. All this will make it easy for the Khilafah State to return to the gold and silver standard.

Moreover, the Islamic countries possess abundant quantities of all raw materials necessary for the Ummah and the Khilafah state, thus making them in no need for other countries regarding the basic and essential goods. Thus the Khilafah State will be, through its reliance on domestic goods, in no need for importing foreign goods. This will hold back the moving of gold abroad and, instead, keep it in the country.

The Khilafah State also possesses important goods like oil which the whole world needs, enabling the Khilafah State to sell it for gold, goods which it needs or for currencies it requires to import goods and services. It can also prevent selling it to any country unless it gives its price in gold. Selling of such goods for gold will make the gold move into the country in abundance, thus increasing the reserves of gold in the Khilafah State.

The State’s self-sufficiency with domestic goods and its ownership of goods needed by all peoples who are ready to pay their price in gold, will hold back the transfer of gold abroad for a profitable return and increase the flow of gold into the country. This will enable it, to become influential, dominating world currency markets and preventing anyone from dominating its currency.

This demonstrates with absolute clarity the capability of the Khilafah State in returning to the gold and silver standard and illustrates that the gold existing in the Islamic countries is sufficient for achieving this and for providing the necessary currency.

How to Achieve the Return to the Gold Standard

The return to the gold standard requires the removal of the reasons that lead to abandoning it and the removal of the factors that lead to its decline. This requires the following:

1. Stopping the printing of paper currency.

2. Restoring the dealings with gold currency.

3. Removing custom duties in front of gold and all restrictions against its import and export.

4. Removing restrictions against owning, possessing, buying and selling of gold, and dealing with it in contracts.

5. Removing restrictions against the possession of the major world currencies and making competition free between them such that they take a fixed price in relation to each other and in relation to gold, without State intervention by reducing or floating their currencies.

Whenever gold is left free, it will have an open market in a short period, and accordingly all international currencies will take a steady exchange price in relation to gold. The international dealings with gold will develop where the payment of the prices of goods contracts estimated by gold, takes place.

If these steps are carried out by one strong State, then its success will encourage other countries to follow it, which will lead to advancing towards returning the world to the gold standard once again.

No State is more worthy to do this than the Khilafah State, since returning to the gold and silver standard in her view is a Shari’ah rule, and also because the Khilafah State is responsible for the world in terms of guidance and looking after the affairs.

By the help of Allah (swt) it was completed on Wednesday 19 Rajab 1402 AH 12 March 1982

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29 The Paper Standard

The paper standard takes paper currency as the tool of circulation. Paper currency is an expression for circulated vouchers issued for the benefit of its bearer, which represent specific debt secured by the State or currency authority that issued it if this paper is a substitute for gold or silver, or secured paper backed by gold or silver.

Paper currency can be a substitute for gold or silver possessed by the State such that it represents it completely i.e. the gold or silver backing this circulating paper represents 100% of this value. So the bearer of this representative paper currency has the right to exchange it into gold or silver, according to this cover, whenever he wants without any restriction or limit. This representative currency is considered, in reality, to be of the metallic system. All that happens is that instead of circulating gold or silver themselves, this representative currency takes their place in circulation in its capacity as their representative.

Also, this paper currency can be covered for a part of its value in gold or silver, in a specific and limited proportion. Such paper currency is known as “secured currency.” Despite this it is not covered completely by gold and silver, its trustworthiness results from the trustworthiness in the authority that issues it. The portion within it covered by gold or silver is currency representative of gold or silver, whereas the remaining not covered portion is secured paper currency whose circulation strength depends upon people’s confidence in the authority that issued it.

The third type of paper currency is paper currency without any gold or silver backing at all, nor is it representative of gold or silver. This is known as “compulsory paper currency” that is not exchangeable for gold or silver. Its value depends upon the strength of the public remission of debt which the law grants to it. It has no intrinsic value in itself; rather its value depends upon the law that obliges it, as compulsory currency. If the law were to abolish transactions involving it or people lost confidence in it, then it would become worthless.

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28 The Currency Standard

Currencies are of two types, metallic and paper. Metallic currency is taken from metals like gold, silver, copper, lead and nickel. Paper currencies are taken from paper as a substitute for gold or silver, or backed by gold or silver or both whether backed in full or partially, or it can neither have a substitute nor be backed by either of them.

The world proceeded in adopting gold and silver as the basis of currency and money until little before World War I when it stopped dealing with them. After World War I it returned to using gold and silver partially then began to decrease this dealing. In 1971, dealing with gold and silver was abolished completely when Nixon, the American President, officially announced on 15/7/71 the abolition of the Bretton Woods system of covering dollars with gold and linking the two at a fixed price.

The currency system is the host of principles upon whose basis manufacturing of currency and managing them are carried out in any State. The principal role for each currency system is to specify the principal currency unit to which relates the value of other types of currencies. So if, for example, the sole principal currency is limited to a specific value of gold, this unit is the principal currency for this system. The currency system’s name usually depends upon the nature of the principal currency that it adopts. So if the principal currency is gold this system is called the gold standard. If the principal currency is silver, it is called the silver standard. If the principal currency is composed of two units gold and silver it is called the bi-metallic standard. If the value of the principal currency unit is not linked in a fixed relationship with gold or silver, it is called a compulsory currency standard, whether it is taken from metals like copper currency or paper currency (bank notes). The Metallic Standard The metallic standard is the standard whose principal currency unit is composed of metals. Either the principal currency unit is composed of one metal or two metals.

Uni- Metallic Standard

This is the metallic currency standard depending upon one metal, gold or silver. This standard could appear in three forms which are:

1. The gold or silver coinage standard.

2. The gold or silver ingots Sabaik standard.

3. The gold or silver currency exchange Sarf standard.

The Gold or Sliver Coinage Standard

This is the standard in which gold or silver coin pieces circulate in a specific, established value or weight which is the circulating tool itself. There could also circulate, together with gold or silver pieces, paper as substitute for gold or silver representing it completely such that it can be exchanged at any time without any restriction or barrier. The Gold or Silver Ingot Standard This is the standard in which gold or silver pieces are withdrawn from circulation. The State or central banks preserve gold or silver ingots in their treasuries and issue paper currency as substitute for gold or silver which is submitted for circulation with the ability of being exchanged for gold or silver.

However, when the State designs this ingot standard it limits the absolute potential for exchanging gold or silver with compulsory currency. It limits this to within narrow limits and designs coin ingots in large quantities such that not everyone can purchase them, in order to preserve the reserves of gold or silver, allowing payment of them in case of deficit in payments balance and to prevent any smuggling of gold or silver abroad. Thus a State that adopts this standard as its currency standard creates a type of currency supervision and some control over the movement of gold or silver.

The Gold or Silver Currency Exchange Standard

This system is distinct in that the currency unit adopted by the country is not directly defined according to gold or silver. Rather, it is defined in relation to the currency of another country that is linked to gold or silver like what occurred in linking the currency of a satellite country with the colonising state’s currency which followed the gold or silver principle. As an example to that is that Syrian and Lebanese currency were linked to French currency during the “Mandate” period, and Egyptian and Iraqi currency were linked to English currency during the period they were under British dominion.

The Bi-Metallic Standard

This is the standard whose principal currency is composed of two units, gold and silver. It is inevitable for this standard to define a specific proportion in weight and measure between the gold and silver units, such that one can measure against the other and knows its exchange value it. In this system, gold unit pieces circulate together with silver unit pieces. Some States define a specific statutory range for exchanging gold units with silver units so that the currency exchange price is fixed between them.

Adopting the gold and silver standard requires defining the principal currency units of gold and silver in specific and fixed values and allowing people to buy, sell, import and export gold and silver without restriction. Also it enables them to change their currencies into gold and silver and vice versa, to facilitate foreign trade and allow people to change gold and silver ingots into coins and vice versa, for a simple cost taken by the coining house in the State.

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27 Currencies (An-Nuqud) in Islam

An-naqd is used in the language to mean the distinguishing of Dirhams and removing the counterfeit from them. It is also used for giving and taking Dirhams. An example for the latter meaning is the Hadith of Jabir regarding his camel which the Messenger of Allah (saw) purchased from him and he said: “He (Naqada) paid me its price” i.e. gave to me as Naqd immediately. It is also used for currency itself.

Currencies are known as that thing which people traditionally agreed to use as prices for goods and wages for labour and services, whether metallic or not, such that all goods, labour and services are measured with it.

People used to trade and exchange goods and services by barter before they knew currencies. However, because exchanging goods and services by barter is surrounded by many difficulties resulting in restrictions in trading transactions, societies thought of choosing a principal good with an intrinsic value that is easily exchanged to become a standard (Miqyas) to measure all goods and services. So they initiated currencies which became the sole measurement. As gold and silver are valuable minerals with intrinsic value from ancient times for human beings, they were taken as currency, and Dinars and Dirhams were coined from them. This was because they are especially characterised by relative scarcity just like gold is distinguished by durability over time.

The Roman State and the countries subordinate to it adopted gold as the basis of their currency such that they coined from it Heraclian Dinars that has a specific shape and weight. The Persian State and countries subordinate to it adopted silver as the basis of its currency such that it coined Dirhams of a specific shape and weight. Roman Dinars were of only one shape and weight, whereas Persian Dirhams had numerous shapes and weights.

Pre-Islamic Arabs, particularly the Quraysh, used to trade with neighbouring countries and regions. Allah (swt) says:

“For the taming of Quraysh such that the (Quraysh) caravans set forth safe in winter and in summer” [At-Takathur: 1-2]

They would return from Ash-Sham bearing golden Caesarean Dinars, and silver Chosroes Dirhams from Iraq, and, less often Humayri Dirhams from Yemen. They would bring Heraclian gold and Sassanid silver to the Hijaz. However, they did not deal with these Dinars and Dirhams by number but by weight considering them as ore (Tibr) i.e. (pure) material of gold and silver not coined money. They ignored taking them as coined currency due to the various types of Dirhams and their different weights, and the probability of Dinars being reduced (in weight) due to their frequent exchange even though they had a fixed weight at that time. They depended on weight to prevent fraud and they had specific weights used for weighing which were the pound, ounce, Nush, seed (Nuwat), Mithqal, Dirham, Daniq, carat and grain (Hubbat). The Mithqal the basis of weight-had a known weight. Its weight was 22 carats less one grain, and their ten Dirhams weighed seven Mithqal.

When Islam came, the Messenger of Allah (saw) consented to dealing with these Dinars and Dirhams. He also consented to considering them as currency, as he consented to the weight with which the Quraysh weighed these Dinars and Dirhams. Tawus narrated from Ibn ‘Umar who said: “The Messenger of Allah (saw) said: “The weight is the weight of the people of Makka, and the measure is the measure of the people of Madinah.’” Al-Baladhri narrated from Abdullah bin Th’alaba bin Sa’eer who said: “Heraclian Dinars came to the people of Makkah in Jahiliyyah as came Dirhams of al-Furs al- Bughliyya (Persians), and when they traded with them they considered them only as ore. The Mithqal had a well-known weight for them, a weight of 22 carats less a fraction. Ten Dirhams weighed seven Mithqal and the pound was 12 ounces with each ounce being 40 Dirhams. The Messenger of Allah (saw) consented to this, as did Abu Bakr, ‘Umar, Uthman and Ali.”

The Muslims continued using Heraclian Dinars and Chosroes Dirhams in their shape, coinage and pictures throughout the life of the Messenger of Allah (saw) , the Khilafah of Abu Bakr as-Siddiq and the first years of ‘Umar’s Khilafah. In the 20th year of the Hijra, which was the 8th year of ‘Umar’s Khilafah, ‘Umar coined new Dirhams in the Sassanid style and retained the Pahlavi faces and writing while adding some words in Kufic Arabic letters such as “In the name of Allah (swt)” and “In the name of Allah (swt), my Lord.” Muslims continued using Dinars in Byzantine style and Dirhams in Sassanid style together with writing certain Islamic words in Arabic letters until the time of Abdul Malik bin Marwan. In the 75th year, or possibly in the 76th year, Abdul Malik coined Dirhams in specific Islamic style carrying Islamic texts engraved upon the Dirhams in Kufic script after abandoning the Sassanid style. In the 77th year, he coined Dinars in a specific Islamic style and engraved upon them Islamic texts with Kufic Arabic script while abandoning the previous Byzantine style. After Abdul Malik had coined Dirhams and Dinars in a specific Islamic style, Muslims had their distinct currency in a unique Islamic style and they abandoned other people’s currency.

The Weight of Dinars and Dirhams

The weight of the Dinar did not differ either in Jahiliyyah or Islam; it has a fixed weight. Byzantine Dinars were used in the time of Jahiliyyah, the time of the Messenger of Allah (saw) and the Khulafa’a after him. Then Abdul Malik coined Islamic Dinars of the same weight. The Byzantine Dinar weighed a Mithqal, where the Mithqal was 8 Dawaniq which weighed 20 carats or a fraction less than 22 carats, both weights being the same as there is a difference in the weight of the two types of carats. The Mithqal is measured as 72 grains of an average barley seed whose two tiny edges are cut off, and it is also estimated as 6,000 grains of average-sized wild mustard.

The Messenger of Allah (saw) consented to this Dinar weight and linked with it the rules of Zakat, blood-money and the cutting for theft. So it became the Shari’ah weight for Dinars, and it is the same weight that Abdul Malik depended upon when he coined the Islamic Dinar and made it a Mithqal.

As for Dirhams, they had different weights because the Persians had three types of Dirhams; the large one whose weight was a Mithqal’s weight, that is 20 carats, the little one whose weight is one half Mithqal’s weight i.e. 10 carats, and the middle one ten of which weighed 6 Mithqal i.e. 12 carats. Al- Balathari narrated from Al-Hassan bin Salih who said: “Dirhams coined by non-Arabs had different weights, both heavy and light. They would coin a Mithqal from it which is 20 carats, another of 12 carats, and another of 10 carats which is of the median Mithqal.” He narrated from other than Al- Hassan bin Salih who said: “Dirhams of the non-Arabs were such that 10 of them weigh 10 Mithqal, 10 of them weigh 6 Mithqal and 10 of them weigh 5 Mithqal.” They used the term mulish (Bughliyya) Dirhams for large Dirhams or the full black (Sood Wafiya) for assessing the basic weight of the Dirham which is the weight of the Mithqal in gold i.e. 8 Dawaniq where a Daniq is two and a half carats, so it becomes 20 carats. This weight was coined at the time of the Sassanids, the righteous Khulafa’a and the Umayyads.

The small Dirham, which is half Mithqal, was called the Tabari Dirham being ascribed to Tabaristan where it was coined. It weighed 4 Dawaniq equivalent to 10 carats. The middle Dirham was called the Juwariqiyya Dirham, being ascribed to Jurqan, the land in which it was coined and it weighed 4.8 Dawaniq i.e. 12 carats.When Islam came and obliged Zakat on silver such that 5 Dirhams are due on every 200 Dirhams, it deemed Dirhams to be those of which every 10 of them weighed 7 Mithqal. They were called “the weight of seven” and they were the middle Dirhams in relation to other Dirhams. This is because they collected the carats of the large, small and average Dirhams and divided them into three, resulting in 14 carats or 6 Dawaniq which are equivalent to 50 and 2/5 grains of the average barley seed whose two tiny edges are cut off. It is also equivalent to 4,200 mustard grains and this is the Shari’ah Dirham considered in the rules of Zakat and blood-monies. This is the weight known and was considered in the days of the Messenger of Allah (saw) , and its amount was measured in Dawaniq and carats and also in the days of ‘Umar based on the Hadith of the Messenger of Allah (saw) : “The weight is the weight of the people of Makkah.” So the amount and proportions were limited to what the Quraysh agreed upon of weights which was consented upon by the Messenger (saw) . This weight was the Shari’ah Dirham, and the Shari’ah rules of Zakat and blood-monies etc were linked to it. This is the same weight of the Islamic Dirham coined by Abdul Malik bin Marwan after abandoning the Persian Dirhams. Waqidi quoted that Wahb bin Kaysan said: “I saw the Dinars and Dirhams, before Abdul Malik bin Marwan engraved and abraded them and they were the Dinar’s weight coined by Abdul Malik.” It is also narrated from AbdulMalik bin As-Saib from Abu Wada’a as-Sahmi that he showed him the weight of the Mithqal saying: “I weighed it and found it the weight of AbdulMalik bin Marwan’s Mithqal. He said: This was owned by Abu Wada’a bin Dhabira as-Sahmi in Jahiliyyah.” Al- Balathri narrated from Uthman bin Abdullah who said: “My father said: ‘The Dinars of Abdul Malik bin Marwan came to Madinah where there were some of the Sahabah of the Messenger of Allah (saw) and others from the Tabi’in. No one rejected them.’” Muhammad (saw) bin S’ad said: “The weight of these Dirhams is 14 carats of the 20 carats of our Mithqal which was 20 carats and it weighs 15 carats out from 21 and three-sevenths carats.”

These are the weights of the golden Dinars and silver Dirhams and the specific differences between their types. To facilitate our knowledge of these weights, we must know their specific amounts in today’s weights.

It was made possible to know these weights exactly after the archaeological discoveries, and the discovery of the Byzantine Dinars, Chosroes Dirhams, Islamic Dinars and Dirhams specifically those coined at the days of Abdul Malik bin Marwan and based upon the weights of the Shari’ah Dinars and Dirhams. Numerous coins from the Islamic era are preserved in museums to this day. The keepers of those currencies in the museums, after they had estimated and differentiated between them, recorded it in an accurate way their exact weights. They found that the weight of the Shari’ah Dinar that was coined by AbdulMalik bin Marwan was 4.25 grams. This is the same weight as that of the sulidus which was the golden currency widely used in Byzantine. This was the same weight of the Greek drachma upon which the Sulidus, the Byzantine Dinar, depended. The Byzantian Dinar was circulating during the times of Jahiliyyah and Islam.

Since the Dinar was one Mithqal and the Mithqal is the basis of the weight, then as a result of knowing this, it is easier to know the weights of Dirhams, Dawaniq, carats and grains in relation to it.

Since the Mithqal is equivalent to 4.25 grams and also 8 Dawaniq, then the weight in grams of a Daniq of gold is 4.25 divided by 8 = 0.53125 gram.

Since the Mithqal is equivalent to 20 carats, the weight in grams of a carat is 4.25 grams divied by 20 = 0.2125 grams.

Since the Mithqal is equivalent to 72 grains of barley, the weight of a grain of barley is 4.25 grams divided by 72 = 0.059 grams = 83.3 grains of mustard.

Since the Dirham is equivalent to seven-tenths of a Mithqal and each 10 Dirhams are equal to 7 Mithqals, the weight, in grams, of the Dirham is 4.25 grams x 7/10=2.975 grams.

Or we can say each 10 Dirhams=7 Mithqals, so 10 x 2.975=29.75 grams as the weight of 10 Dirhams.

Or we can say each 7 Mithqals=10 Dirhams so 7 x 4.25=29.75 grams, as the weight of 7 Mithqals.

As the Dirham is equivalent to 6 Dawaniq, the (Daniq) weight in grams is: 2.975 divided by 6=0.495 grams as the silver (Daniq) weight.

As the ounce with which Dirhams were weighed is equivalent to 40 Dirhams, its weight in grams is: 2.975 grams weight of the Dirham x 40 Dirhams weight of the ounce=119 grams weight of the silver ounce.

This is the currency that was used in the days of Jahiliyyah and its weights. Islam consented to this currency as it was, and accepted its use, and of being the measure of all goods and labour. It also consented to the weight of the people of Makkah regarding currency.

Despite all this, Islam did not oblige it as the only tool of exchange when it established the rules of business, purchase and hiring but left it to human beings to exchange goods, benefits and labour by anything that they have a mutual agreement on, without obliging a specific thing upon which exchange is based. It allowed people to buy a sword with dates, sheep with wheat, clothes with Dinars, meat with Dirhams, to work a day for a Sa’a (cubic measure) of raisins, build a cupboard for 5 Dinars or build a specific house in return of the cultivation of a specific land. In this way, Islam left men to exchange with what they wish and with whatever they have a mutual consent on between them whether in goods, labour or currency.

Despite Islam allowing people to exchange with whatever they wish, it specified the currency by which exchange takes place to be gold and silver. It made them the measuring currency, which it reverted to for measuring goods and labour, and the basis for all transactions. It determined for them a specific weight which is the weight of the people of Makkah: “The weight is the weight of the people of Makkah.”

Islam linked some Shari’ah rules with gold and silver in their capacity as gold and silver, and their capacity as currency, money and prices for things and wages for labour. Among these rules: 1. Prohibiting their hoarding (Kanz). Allah (swt) said:

“Those who hoard gold and silver and do not spend them in the way of Allah (swt), give them tidings of a painful punishment” [At-Tauba: 34]

It made the prohibition of hoarding gold and silver in their capacity as gold and silver and as currency and the tools of exchange, by which trade and employment are fulfilled.

2. It linked specific, constant and permanent rules with both of them

a) Obliging Zakat on them by considering them currency, prices for purchases and wages for labour. It determined for them a specific Nisab for golden Dinars and silver Dirhams: “One half Dinar in every 20, and 5 Dirhams in every 200.”

b) It allowed them (Gold and Silver) to be used for payment when it obliged blood-money, determining a specific amount of gold, which is 1,000 Dinars and silver which is 12,000 Dirhams. Narrated by ibn Abbas “that a man from Bani ‘Adiyy was killed so the Prophet (saw) made his bloodmoney 12,000” i.e. of Dirhams (narrated by the compilers of the Hadith books). It was narrated by Abu Bakr bin Muhammad (saw) bin Amru bin Hazm from his father from his grandfather “that the Messenger of Allah (saw) wrote a book to the people of Yemen containing within it ‘the bloodmoney for a soul is 100 camels or 1,000 Dinars from the users of gold.’” narrated by an-Nasa’i

c) When it obliged cutting for stealing, it specified the amount for which a hand is cut as one-quarter Dinar or

3 Dirhams of silver. It made this the measurement for all that is stolen. From Aisha from the Prophet (saw) who said: “The hand of the thief is not cut except for one-quarter of a Dinar or more” (narrated by the five). From ibn ‘Umar “that the Messenger of Allah (saw) cut the thief for a Majann (sword) of 3 Dirhams.”

3. When it established the rules of currency exchange (sarf) in money transactions, it made them in gold and silver. Currency exchange is exchanging currency for currency and trading money for money, either in its own type like gold for gold and silver for silver, or for different types like buying gold with silver or silver with gold. From Abu Bakra he said: “The Prophet (saw) prohibited silver for silver or gold for gold except equally. He commanded us to purchase silver with gold or gold with silver, however we wished.” (collected by Bukhari and Muslim).

Islam linked these Shari’ah rules with gold and silver in their description as monies and currencies for exchange and prices for sales. This is consent from the Messenger of Allah (saw) to use gold and silver as the sole measuring currency unit upon which sale prices are assessed and wages for labour are measured.

This indicates that currency in Islam is gold and silver because all rules linked to currency are linked to gold and silver in their capacity as prices for all goods and labour and currencies for exchange, whether they are coined or in ore form i.e. not coined.

However, does this mean that it is not permitted for Muslims or the Islamic State to take anything else as currency or to deal with anything else?

As for dealing with other things, this is definitely allowed without any dispute because buying and selling took place in the days of the Messenger of Allah (saw) through barter by exchanging goods for each other just as it took place with currencies of gold and silver. The Messenger of Allah (saw) consented to all of this without preventing or denying it. Rather he permitted such transaction. Muslim narrated from Ubada bin as-Samit from the Prophet (saw) who said: “Gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, salt for salt in the same type (mithl) and equal amounts and hand to hand (immediately). If these categories differ, buy as you wish as long as it is hand to hand (immediately).” And An-Nasa’i narrated from Ubada who said: “and he commanded us to buy gold for silver, silver for gold, wheat for barley, barley for wheat hand to hand, however we wished.”

As for the issue of whether Muslims or the Khilafah State are allowed to take other than gold and silver as currency, this inevitably requires one to understand the reality of currency that was present at the time of the Messenger of Allah (saw) and to return to the Shari’ah rules linked to gold and silver.

As for the reality of currency present in the days of the Messenger of Allah (saw) , there was no money at that time exchanged in its capacity as currency to measure the prices of goods and wages of labour, except gold and silver. There was no other currency at that time, whether metallic or non-metallic. There was no copper or lead coins just like there was no leather or paper currency. Gold and silver were the only accepted money and currency circulated among Muslims. Buying and selling was accomplished by them in weight, not units, in their capacity as ore even if they were coined. The trader who sold his goods for Dinars he would weigh the Dinars to verify that they were a complete Mithqal that had not been decreased due to exchange transactions, and whoever sold his goods for Dirhams he would weigh them to verify they were the required weight to complete the sale with them. Whoever possessed 20 Dinars over which a year passed, weighed them and found that they were less a number of carats he would not pay the Zakat as they were less than the Nisab of Zakat. Whoever possessed 200 Dirhams, weighed them and found them one carat less than the Nisab of silver he would not give Zakat because they were less than the Nisab.

This clarifies that gold and silver, in their essence, are considered currency and priced without considering whether they were coined or not. This is because they were traditionally accepted as currency with which goods, labour and services were measured. The Messenger of Allah (saw) consented to this tradition and this consideration. They remained the utilised currency throughout the life of the Messenger of Allah (saw) , the righteous Khulafa’a after him and the times of the Ummayyads and Abbasids. The Muslims never knew of any other currency throughout this period. The Messenger (saw) ’s acceptance the currency and prices was consent to an existing reality and he did not order adopting other than them, as currency.

Examining the Shari’ah rules related to gold and silver, shows that the prohibition of hoarding is linked only to them and not to other types of properties. As for other types of properties, it is possible that they become subject to monopoly but not hoarding. Foodstuffs do not remain viable for long periods, and hoarding is not possible with animals, livestock and birds as they constantly increase. Since hoarding does not appear except in currencies, the rules prohibiting hoarding came related to gold and silver as there was no currency among Muslims apart from them.

However, despite the Legislator (Ash-Shar’i) relating permanent rules with gold and silver such as the rules of blood-money and Zakat, He did not restrict them only to gold and silver but linked blood-money and Zakat with other types of properties (Amwal). Shar’a linked blood-money with camels, cattle, sheep/goats and clothes. It obliged Zakat in livestock of camels, cattle and sheep/goats, crops and fruits, and trading merchandise just like it obliged it in gold and silver.

Thus these rules that are linked to gold and silver are not restricted to them but are linked with other types of properties. However it did not turn attention to currency other than them because there was no other type of currency. As for the rules of interest (Riba) and currency exchange related to them, interest is related to them and other types of usurious wealth that are determined by the Ahadith. As for currency exchange, it can only be in currency and utilised money.

From this review of the reality of currency that was used at the time of the Messenger (saw) and of the gold and silver system, it can be deduced that the currency of the Khilafah State should principally be gold and silver for both measuring the prices of goods and the wages of labour. However it is allowed to use other metals, together with gold and silver, when the small pieces of gold and silver are coined.

Published in Funds of the Khilafa State

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26 The Expenditure of Zakat

Allah (swt) restricted the expenditure of Zakat in His saying:

“Verily the Sadaqat are (only) for the poor, needy, those employed upon it, those whose hearts are to be reconciled, slaves, debtors, those in the way of Allah (swt) and the wayfarers” [At-Tauba: 60] This Ayah restricts the expenditures of Zakat to these eight categories, limiting and specifying it for them. It is not allowed to give from it to any category other than these, because the Ayah begins with the term “Innama” which is an articles of limitation and restriction, followed by the letter “lam” of ownership. This indicates the limitation of Sadaqah beneficiaries and ownership to these eight categories which are:

1. The Poor (Al-Fuqaraa): These are those who don’t receive enough money to suffice them to fulfil their basic needs that are food, clothing and shelter. Whoever receives less than what he needs to fulfil his basic needs is considered poor, so Sadaqah is Halal for him. He may take from it and he can be given enough Sadaqah to the limit that removes his need and poverty.

Allah (swt) has prohibited the rich from taking Sadaqah. Abdullah b. Amru said: The Messenger of Allah (saw) said: “Sadaqah is not Halal for the rich (person) nor the one of sound and strong body (Zu Mirra).” The Zu Mirra is the person of strength and acquiring ability. If he doesn’t have the strength and ability, then he is considered poor. The rich person is the one who is independent of others such that he receives more than is required to fulfil his needs. There have come Ahadith clarifying who the rich person is. Abdulllah b. Masud said: The Messenger of Allah (saw) said: “No person will ask for something while he is rich except he will come on the Day of Judgement with his face bitten, scratched or wounded.” It was said: “O Messenger of Allah (saw), what is his richness?” He said: “50 Dirhams or its equivalent in gold” (narrated by the five). Whoever owns 50 silver Dirhams equal to 148.75 grams of silver, or its equivalent in gold, in excess of his food, clothing, shelter and the expenses of his family, children and servant is considered rich and it is not allowed for him to take from the Sadaqah.

2. The Paupers (Al-Masakeen): They are the ones who don’t have anything so the want abated them and they do not beg people. The Messenger of Allah (saw) said: “The pauper is not the one who goes about the people, content with a morsel or two or a date or two. The pauper is the one who doesn’t find any wealth to suffice him nor do people notice him so that they give him charity. Nor does he stand to beg people” (agreed upon). The pauper is lesser than the poor person due to the saying of Allah (swt) :

“Or a pauper with dust” [Al-Balad: 16] i.e. covered with dust due to his nakedness and hunger. The Sadaqah is allowed for the pauper and he can take from it. He can be given from Sadaqah to the limit that his misery is removed and he is enabled to satisfy his basic needs.

3. Those employed over collecting it (Al-’Amileen ‘alayha): These are the Messenger (saw)s and Sadaqah collectors appointed to collect Sadaqah from those whom it is obliged upon them, or they distribute it to its beneficiaries. They are given of the Sadaqat, even if they are wealthy, in exchange for collecting or distributing it. Ata’a b.Yasar said: The Messenger of Allah (saw) said: “Sadaqah is not allowed for the rich except for five: The one employed to collect it, a man who buys it with his wealth, a man who was given a Sadaqah and he donated it to his neighbour, the fighter or the debtor.” And from Busr b. Said that ibn Asa’di al-Maliki said: “‘Umar appointed me over the Sadaqa. When I finished and gave it to him, he ordered some wage for me’. I said: ‘I did it for the sake of Allah (swt).’ He said: ‘Take what I give you for I was employed at the time of the Messenger of Allah (saw) . He employed me and I told him what you told me. The Messenger of Allah (saw) said: ‘If you are given something without begging, eat (of it) and give charity’” (agreed upon).

4. Those whose hearts are to be reconciled (Al-muallafatu qulubuhum): These are types of leaders, chiefs, influential people or heroes whose beliefs are not yet settled, where the Khalifah or his governors see it fit to give them from the Zakat as reconciliation for their hearts, settling their beliefs, utilising them for the benefit of Islam and Muslims or to influence their communities. This is similar to what the Messenger (saw) gave to Abu Sufyan, Uyayna b. Hisn, Al-Aqr’a b. Habis, Abbas b. Mirdas and others. Amru b. Taghlib said “that some money or captives reached the Messenger of Allah (saw) and he distributed them. He gave to some men and left some others. He got the knowledge that those who were not given were full of blame. So he praised Allah (swt) and extolled Him, then he said: ‘See! By Allah (swt) I give to a man and leave another. The one I leave is more beloved (to me) than the one I give. Rather, I give people whom I see in their hearts some fear and impatience, and I entrust some people with what Allah (swt) placed in their hearts of affluence and good.’”

Those to be reconciled are not given Zakat except if they are Muslims. If they are Kuffar, they are not given any Sadaqat as it is not given to the Kafir. This is due to the saying of the Messenger of Allah (saw) to Mu’az when he sent him to Yemen: “Inform them that Allah (swt) obliged Sadaqah upon their wealth to be taken from their rich and given to their poor.”

Similarly they are not given from Zakat except if the reason (‘illa) for which they are given is present. If the reason is not present, they are not given Sadaqah as Abu Bakr and ‘Umar stopped paying it after Islam was strengthened and widespread.

5. Slaves “Ar-riqab”: They are the slaves who are given of Zakat if they are contracted to free themselves, or they are purchased by Zakat funds and set free if they are not contracted. There are no slaves today.

6. Debtors “Al-Gharimeen”: These are those who are indebted and bear debts upon themselves so they are paid to resolve disputes between people, pay blood-monies or to discharge their personal interests.

As for those who bear debts to resolve disputes or to pay blood-monies, they are paid from the Zakat, whether they are poor or rich, the exact amount that they bear of debt without any excess. Anas narrated that the Prophet (saw) said: “Begging is not allowed except for three (persons): The person of abject poverty, odious debt or painful blood.” Qabeesa bin Mukhariq al-Hilali said: “I bore a burden so I went to the Messenger of Allah (saw) to beg for it. He said: ‘Wait with us until a Sadaqah comes to us so that I give you of it.’ Then he said: ‘O Qabeesa, begging is not allowed except for one out of three: A man bearing a burden so he is allowed to ask for a Sadaqah till he gets it then he holds from taking more; a man whose wealth suffered a calamity so he is allowed to beg until he attains what is enough of livelihood or he said what meets his livelihood; and a man who was struck by a poverty of which three wise men of his fold say that so and so person has been struck by a poverty so he is allowed to beg until he attains what is enough of livelihood, or he said what meets livelihood. Whoever begs other than these, O Qabeesa, he would eat illicit money (Suht).’”

As for those who bear debt to meet their personal interests, they are given of Zakat to repay their debts if they are poor, or not poor but unable to fulfil their debts. If they are rich and able to pay their debts, they are not given anything as it is not allowed for them.

7. In the way of Allah (swt) (Fi Sabeelillah): i.e. Jihad, whatever is necessary for it and what it depends upon, such as forming an army, establishing factories and manufacturing weapons.Whenever “Fi Sabeelillah” is mentioned in the Qur’an, it means nothing other than Jihad. Zakat is spent for Jihad and its essentials, and it is not limited to any amount. So it is allowed to spend all of the Zakat, or some of it, for Jihad according to what the Khalifah sees as beneficial for the Zakat beneficiaries. Abu Said narrated: The Messenger of Allah (saw) said: “Sadaqah is not allowed for the rich person except in the way of Allah (swt)…” and in another narration: “…or the fighter in the way of Allah (swt).”

8. The wayfarer (Ibn us-Sabeel): This is the one whose travel has been cut off such that he doe not have enough money to allow him to reach his home. He is given from the Zakat the amount that will allow him to reach his destination, whether a little or a lot. Similarly, he is given the necessary expenses to allow him reach his destination, even if he is in fact rich where he lives, due to the Messenger (saw) ’s saying: “Sadaqah is not allowed for the rich person except in the way of Allah (swt) or a wayfarer or….”

Zakat cannot be given to any other than these eight mentioned categories. It is not spent for building mosques, hospitals, charity facilities or any State or Ummah utility, because Zakat is the private property of the eight categories such that no one else shares it with them.

The Khalifah is the one who is responsible to give it to these categories accordng to how he views achieving the benefit of these categories, as the Messenger of Allah (saw) and the Khulafa’a after him would supervise its payment. It is allowed for the Khalifah to distribute it among these eight categories as he may restrict its spending to some of these categories as he sees beneficial to these categories. If these categories are not found, the Zakat is preserved in Bait ul-Mal in the department of Sadaqat to spend it when there is a need for it by those who are entitled of it. Ibn Abbas said about Sadaqah: “If you spend it for one of these eight categories, it would be valid.” Ata’a and Al-Hassan said the same. Malik said: The matter of dividing Sadaqah in our view is that it is a matter of Ijtihad left to the governor so any category that has need and the number (of people) it is preferred (over others), according to how the governor views fit.”

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25 Paying Zakat to the Khalifah

Zakat is paid, whether it is livestock, crops and fruits, currency or trading merchandise to the Khalifah or his representative such as governors (Wulat) or workers (‘Amileen) or whoever he appoints as collectors (Su’at) and employees (‘Amileen) over the Sadaqat. Allah (swt) said:

“Take Sadaqah from their wealth in order to purify them and sanctify them with it, and pray for them. Verily your prayer is peace for them” [At-Tauba: 103]

Allah (swt) obliged His Messenger (saw) in this Ayah to take Sadaqah from the owners of wealth, and the Messenger (saw) used to appoint governors, workers and collectors to take the Sadaqah from the owners of wealth just as he would appoint estimators (Khurraas) to estimate the harvest of the palm and grape trees. People at the time of the Prophet (saw) used to pay the Zakat to him or those governors, workers and collectors whom he appointed over the Sadaqah. The situation continued like this after him in the time of Abu Bakr, ‘Umar, Uthman and Ali. Ibn Sireen narrated: “Sadaqah used to be paid to the Prophet (saw) or whoever he had ordered, to Abu Bakr or whoever he ordered, to ‘Umar and whoever he ordered, to Uthman and whoever he ordered. When ‘Umar was killed they differed, some of them would pay it to them while others would themselves divide their Sadaqah. Among those who paid to them was ibn ‘Umar.”

Zakat is paid to the Khalifah or whoever he appoints as rulers, governors, workers and collectors, even if they were oppressors so long as the Islamic ruling is implemented. This applies even if there are shortcomings in the implementation. Suhayl b. Abi Salih narrated from his father who said: “I asked Sa’ad b. Abi Waqqas, Abu Hurayra, Abu Said al-Khudry and ibn ‘Umar: ‘This ruler is doing what you can see (of evil). Should I pay my Zakat to them?’ He said: They all said; ‘Pay it to them.’” Ibn ‘Umar said: “Give it to whoever Allah (swt) put in charge of your affairs. Whoever is good, it is for his own self and whoever is evil, it is against himself.”

There have come some narration from the Sahabah and followers (Tabi’in) allowing a person to distribute Zakat personally and to put it in its place in case of hard money i.e. currency. It was narrated that Kaysan came to ‘Umar with 200 Dirhams as Sadaqah, saying to him: “O Amir al-Mu’mineen, this is the Zakat of my wealth.” So ‘Umar said to him: “You go and distribute it yourself.” It has also been narrated from ibn Abbas that he said: “There is no problem if you put it in its place and don’t give anything of it to anyone whom you support.” It was also narrated the statement of Ibrahim and Al- Hassan said: “Put it in its place and conceal it.” This is in relation to the hard money i.e. currency. As for livestock, crops and fruits. these must be paid to the Khalifah or whoever he appoints, for Abu Bakr fought those who denied the Zakat, when they refused to pay it to the governors and collectors, saying: “By Allah (swt), if they deny me one baby goat (‘Unaq) that they used to give to the Messenger of Allah (saw) I will fight them for it.”

It is recommended for the taker to pray for the giver by saying: “Allah (swt) reward you in what you have given, bless you in what you have spent and make it a purification for you.” If it is paid to the Khalifah or one he has appointed, the giver of Zakat should be prayed for. Allah (swt) said:

“Take Sadaqah from their wealth in order to purify them and sanctify them with it, and pray for them. Verily your prayer is peace for them” [At-Tauba: 103]

Abdullah bin Abi Awfa narrated: “My father was among the owners of trees, and the Prophet (saw) used to pray for those who came to him with their Sadaqah saying: ‘O Allah (swt), forgive the family of so and so.’ My father came to him with his Sadaqah, so he said: ‘O Allah (swt), forgive the family of Abu Awfa’” (agreed upon).

The Rule of the Withholder of Zakat

If the Muslim possesses the Nisab of wealth in which Zakat is obligatory, it is obligatory upon him to pay its Zakat. If he refuses to give its due right, it is a grave sin as was mentioned in the Ahadith which came regarding the subject of Sadaqah properties in terms of severely condemning those who don’t pay the Zakat on their wealth.

The reality of the one who refuses to pay Zakat is examined. If he denied paying it due to his ignorance of its obligation, such as the people who are usually ignorant of the same rule, then he is informed of its obligation. He is neither declared a Kafir nor is he punished, due to his excuse, and the Zakat is taken from him.

If he refuses, and denies its obligation, he is an apostate and is treated like an apostate. He is asked to repent thrice; if he repents and is remorseful, it is taken from him and he is left free. If not, he is killed because the obligation of Zakat is known from the deen by necessity. The evidences for obliging Zakat are clear in the Book, Sunnah and Ijma’a, such that they can scarcely be hidden from any Muslim.

If he denies paying it while believing in its obligation, it is taken from him by force. If a group refuses to pay Zakat to the State, and reject the obligation of obedience in paying Zakat to it and became strong and entrenched in an area, the State will fight them as rebels like Abu Bakr and the Sahabah did with those who denied the Zakat.

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24 Jewellery (Al-Huliyy)

Jewellery is that of which a woman adorns and beautifies herself with, of gold or silver, on her wrists, neck, ears or other parts of her body.

There is no Zakat upon jewellery, whether gold, silver or other types of gems like pearls, rubies, chrysolites/peridots, carnelians (‘Aqiq) and other types of precious stones, whether the jewellery is of a small or large quantity or has reached the Nisab or exceeded it. There is no Zakat on all this for it is owned for use and women take it for adornment and beauty, and not for hoarding and trade. If the jewellery is for hoarding or trading, then there is Zakat on it. Al-Laith b. S’ad narrated from Abu Zubayr from Jabir from the Prophet (saw) who said: “There is no Zakat upon jewellery.” Amru b. Dinar said: “Jabir b. Abdullah was asked: ‘Is there Zakat upon jewellery?’ He said: ‘No’. It was said: ‘Even if they reach 10,000?’ He said: ‘Yes.’” Nafi’a narrated from ibn ‘Umar “that he used to marry off all his daughters for 10,000 and made 4,000 of that as jewellery. He said: ‘He did not give Zakat upon that.’” Abdur Rahman b. al-Qasim narrated from his father “that Aisha, the Prophet (saw) ’s wife, used to look after the orphan daughters of her brother in her house. They had jewellery and she did not give Zakat of their jewellery.” As for the Ahadith which are used as evidences by those who oblige Zakat upon jewellery, the terms Riqqa, ounces, silver and golden Dinars which came in the Ahadith obliging Zakat on gold and silver do not include jewellery. This is because these words are used in the Arabic language for Dirhams and Dinars of gold and silver that are engraved and circulated among the people; this is the currency which is taken as prices for things and payments for services and benefits unlike jewellery. If the wording of the Ahadith used the expression “if silver reaches such amount then it is due in it is so much”, then jewellery would have been covered by the word silver. However, the Ahadith used the words Riqqa, ounces, silver and golden Dinars, all of which are used for minted and coined gold and silver currency, so jewellery is not included. These Ahadith specify the general Hadith, “No owner of gold and silver will fail to render its due Zakat except that he will be struck with metal sheets on the Day of Judgement.”

As for the Hadith of Amru b. Shuaib which mentions: “A woman came to the Prophet (saw) along with her child with two gold bracelets in her hand. He said: ‘Do you give the Zakat upon these?’ She said: ‘No.’ He said: ‘Would you like that Allah (swt) makes them into bracelets of Fire?’” Abu Ubaid said of this Hadith: “We only know of it having been narrated in one way through a chain of narrators which people have criticised in the past and present. If the matter is like what is narrated, and it is reported from the Prophet (saw) , then it is likely to mean of the Zakat, the loan ‘Ariyya, as was interpreted by the scholars of whom we mention: Said b. al-Musayyib, Ash- Sh’abi, Al-Hassan and Qatada in their statement: “Its Zakat is its loan.” If Zakat on jewellery was obligatory like that on the Riqqa, it would have been like the rest of the Sadaqat that are common and known from the Prophet (saw) in the world through his letters and Sunnah. At-Tirmizi said: “There is nothing authentic in this chapter.”

As for what came from Aisha of her saying: “There is nothing wrong in wearing jewellery if its Zakat is paid” and the Prophet (saw) ’s saying when he saw her wearing bracelets of silver i.e. large rings: “This is sufficient for you of Hellfire”, these can be explained like the Hadith of Amru b. Shuaib. This is especially because something came from Aisha that contradicts this. The son of her brother (i.e. nephew), Al-Qasim b. Muhammad, narrated: “I never saw Aisha commanding this of her women slaves nor her brother’s daughters (nieces).” She used to adorn her brother’s daughters with gold and silver and did not pay Zakat on it. The Hadith of Aisha regarding the rings of silver is narrated by Yahya b. Ayyub and he is weak. Furthermore, it is not possible for the weight of the rings to be the weight of silver’s Nisab such that the Zakat is obliged in it and a year had not passed on it. All of these emphasise the weakness of this Hadith. As for the Hadith of the Awdhah (anklets) narrated from Umm Salamah, it is narrated by way of Utab who is unknown.

As for the Hadith of Abdullah b. Amru mentioning that he used to give Zakat on his daughter’s jewellery, in its chain is the same criticism as the chain of the previously mentioned Hadith of Amru b. Shuaib. Ibn ‘Umar, Jabir, Anas, Aisha and Asma all considered that there is no Zakat upon jewellery. The same was said by al-Qasim, Ash-Sh’abi, Qatada, Muhammad (saw) b. Ali, Malik, Ash-Shafii, Ahmad, Abu Ubaid, Ishaq and Abu Thawr.

This is all regarding jewellery used by a woman. If it is taken by a man for his own use, this is prohibited for him and he is obliged to pay Zakat. Whereas, if he takes them not for his own use but rather to give or lend to his wives, daughters or others then there is no Zakat upon them. This is because they are for a permitted use so there is no Zakat against him. If he takes them for business, then Zakat is obliged on them.

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23 Zakat on Debts

Whoever has wealth which has reached the Nisab and a year has passed over it, and also has a debt which engrosses the Nisab or renders the remaining wealth after repaying the debt, less than the Nisab, does not pay any Zakat. This is for example if one who possesses 1,000 Dinars and owes 1,000 Dinars, or one who possesses 40 gold Dinars and indebted by 30 gold Dinars, there is no Zakat upon him in these two cases as he does not own the Nisab. From Nafi from ibn ‘Umar who said: The Messenger of Allah (saw) said: “If a person has 1,000 Dirhams and is in debt of 1,000 Dirhams, then there is no Zakat upon him.”

When the wealth after paying the debt reaches the Nisab, then Zakat is obligatory upon him due to what was narrated by As-Saib b. Yazid who said: I heard Uthman b. Affan saying: “This is the month of your Zakat. Whoever has a debt should pay it so that you give the Zakat on your wealth.” In another narration: “Whoever has a debt should pay it off and pay Zakat on his remaining wealth.” He said this in the presence of the Sahabah who did not deny it, thus indicating their consensus (Ijma’a).

Where a person is a creditor of a debt to a non-deferring rich person who is able to repay it at any time, it is obliged upon him to pay Zakat on that debt when a year passes over it. ‘Umar ibn Al-Khattab said: “When Sadaqah becomes due, count your debts and what you have as one whole then pay its Zakat.” Uthman b. Affan said: “Sadaqah is obliged upon the debt which you could collect from the debtor if you want, and that debt which is on someone who delays repayment and you leave it due to shyness or as a favour; in it is Sadaqah.” Ibn ‘Umar said: “On each of your debts in which you expect repayment you must pay Zakat whenever the year passes over it.”

However, where the debt is owed by a poor person in hard circumstances, or a deferring rich person, it is not obliged upon the creditor to pay its Zakat until it has been repaid. After it has been repaid he gives all that was obliged upon him over the years. Regarding a doubtful debt i.e. one in which the creditor is not sure if it will be resolved or not. Ali said: “If he is honest let him pay the Zakat once it has been restored for the period.” Ibn Abbas said regarding debts: “If you don’t expect to receive it, don’t pay its Zakat until you get it. When you receive it, pay all that is upon it.”

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22 Zakat on Trading Merchandise

Trade merchandise is everything other than currency which is used for trading, buying and selling, for the sake of profit e.g. foodstuffs, clothing, furniture, manufactured goods, animals, minerals, land, buildings and other goods that are bought and sold.

Zakat is obliged on merchandise taken for trade by the agreement of the early and latter scholars. From Samura b. Jundub who said: “See! Verily the Messenger of Allah (saw) used to command us to give Sadaqah on what we prepared for sale” (narrated by Abu Dawud). Abu Dharr narrated from the Prophet (saw) who said: “There is Sadaqah in Bazz.” Al-Bazz are clothes and woven material used for trading. Abu ‘Amra b. Hamas narrated from his father who said: “‘Umar ibn Al-Khattab passed by and said: ‘O Hamas, pay the Zakat on your property’. I said: ‘I don’t have any property except for Ji’b (quivers) and leather’. He said: ‘Estimate them, then pay their Zakat.’” AbdurRahman b. Abdul-Qari said: “I was appointed over Bait ul-Mal in the time of ‘Umar ibn Al-Khattab. When the gifts were given out, the wealth of the traders was collected and counted, of what was present or absent. Zakat was then taken from the present wealth for what was present and absent.” From ibn ‘Umar who said: “There is Zakat on Raqeeq (slaves) and Bazz suits upon which trade is intended.” The obligation of Zakat on trade has been narrated from ‘Umar and his son, ibn Abbas, the seven jurists, Al-Hassan, Jabir, Tawus, Al-Nakhai, Ath-Thawri, Al-Awzai, Ashl-Shafii, Ahmad, Abu Ubaid, the people of the opinion (Ashab ar-Rai), Abu Hanifah and others.

Zakat on trading merchandise is obliged when it reaches the Nisab value of gold and silver, and a year has passed over it.

If the trader begins his trade with property less than the Nisab then it reaches the Nisab at the end of the year, there is no Zakat upon it because a year has not passed over it. Zakat will be obliged on its Nisab after a full year has passed over it.

If the trader begins his trade with property above the Nisab such that he begins his trade with 1,000 Dinars then his trade grows and profits by the end of the year so that its value becomes 3,000 Dinars, it is obligatory upon him to pay Zakat on 3,000 Dinars not the 1,000 Dinars he started with. This is because its profit follows it i.e. the origin, and the period of one year of generated profit is the same as the period of one year of the origin. This is like, the goats’ offspring (Sikhal), and offspring of sheep (Baham), that are counted together with them, because their period of one year (Hawl) is that of their mothers. Similar to this is the profit on wealth so its time (Hawl) is the period of one year of the origin from which profits were derived. When the year finishes the trader estimates his trading merchandise whether Zakat is obliged upon it because of itself such as camels, cattle, and sheep, or not, such as clothes, manufactured products, land and buildings. He estimates them collectively in gold or silver units. He then gives quarter-tithe if it reaches the Nisab value of gold or silver, giving the obligatory Zakat in the used currency. It is allowed for him to give its Zakat from the merchandise itself if that is easier for him, e.g. where he is trading with sheep/goats, cattle or clothes and the value of the Zakat obliged upon him is estimated in sheep, cattle or clothes, he may give its Zakat in currency or he may give it in sheep, cattle or clothes i.e. he may give whichever he wishes.

Zakat on trading merchandise, on whose assets Zakat is due like camels, cattle and sheep/goats, is paid as Zakat of trading merchandise, not as Zakat of livestock. This is because trade is intended in their ownership, not mere possession.

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21 Zakat of Paper Currency

Paper currency is the financial papers which the State issues and makes as its currency and money by which prices of goods and payments for services are assessed. The Zakat on this paper currency is the Zakat of gold and silver. The rules of Zakat apply to it according to its reality. This reality appears in three forms:

1. Representative paper currency which is currency issued by the State that proceeds according to the system of metallic currency. It represents a specified quantity of gold or silver and acts as its representative in circulation and is exchanged for it upon demand. This representative paper is considered gold or silver as it can be exchanged for them at any time, and its Zakat becomes the Zakat of gold and silver. If it is a substitute for gold and its quantity reaches the equivalent of 20 gold Dinars i.e. 85 grams which is the Nisab of gold, the Zakat of quarter-tithe is obliged once a year passes over it. If it is a substitute for silver and its quantity reaches the equivalent of 200 silver Dirhams i.e. 595 grams which is the Nisab of Zakat, the Zakat of quarter tithe is obliged on it. The evidence for the obligation of Zakat in this paper currency is the same as the previously mentioned Ahadith indicating the obligation of Zakat in gold and silver. This is because it is a representative and substitute for gold and silver, and the representative or substitute takes the rule of the original (Asl).

2. Reliable (Watheeqa) paper currency which is currency issued by the State or a trustworthy bank in which the State is vested with the right to issue such papers. It has a specific cover of gold and silver according to a specific proportion which is less than the nominal value of currency. This cover of gold and silver is retained by the State or the issuing bank as a guarantee for it. Its issuer commits itself to give its cover value of gold or silver to its bearer upon demand. Its cover is not complete but a specific proportion of its value, such as three-quarters, two-thirds, one-half or any other percentage.

The covered ratio or portion of the reliable paper currency (Watheeqa) is considered representative paper currency, whether covered by gold or silver, because it can be substituted for it at any time. So its Zakat becomes the Zakat of gold and silver. If for example, it is covered with gold at half of its nominal value, then Zakat is obliged in it when it reaches 40 Dinars and a year passes, with its Zakat being in Dinars of its type. If it doesn’t reach 40 Dinars, no Zakat is obliged upon it as it is less than the Nisab.

If it is covered by silver at a one-half nominal value, for example, then Zakat is obliged in it once it reaches 400 Dirhams and a year has passed, with its Zakat being 10 Dirhams of its type. If it is less than 400 Dirhams, there is no Zakat on it because it is less than the Nisab of silver.

The evidence for the obligation of Zakat on this reliable paper currency is the same Ahadith indicating the obligation of Zakat in gold and silver. This is because it acts as a representative and substitute for gold and silver within the amount of the nominal value covered, so Zakat is obliged on it since the representative or substitute takes the rule of the origin (Asl).

3. Compulsory (Ilzamiyya) paper currency which is paper currency issued by the State through statute. It is issued for dealings and deemed as prices for commodities and payment for services and benefits. However, it is not exchangeable for gold or silver, or covered by gold or silver, nor is it guaranteed by reserves of gold or silver or backed paper money. There is no value to this paper currency save statutory value.

However, since this compulsory currency has been adopted as money, payments for benefits and services and gold and silver as well as all other merchandise and goods are bought by it. Therefore, it has fulfilled the currency and price characteristics verified in gold and silver. Such two characteristics are indicated in the Ahadith that obliged Zakat in gold and silver, such as the Hadith: “There is quarter-tithe in (Riqqa)” and: “there is no Zakat in (property of) less than five ounces” and: “Give the Sadaqah of (Riqqa)” and: “Nothing is taken from silver until it reaches 200 Dirhams. Once it reaches 200 Dirhams then five Dirhams are taken from it” and: “If you have 20 Dinars over which a year has passed then a half-Dinar is due from it.” All these Ahadith indicate the currency and price characteristics should be stated using it, for the words Riqqa, Wariq and ounces are used in the Arabic language to indicate coined and minted Dirhams. Similarly the term Dinars is not used except to mean coined and minted gold, i.e. currency and prices. The use of these terms instead of using the words silver or gold indicates that it is the currency and the price are meant in the Ahadith. Thus the rules of Zakat, blood-monies, atonements (Kaffarat), cutting for theft and other rules are linked to these two characteristics.

Since compulsory currency verifies these currency and price characteristics, then it is included by the Ahadith obliging Zakat in the two currencies, gold and silver. So Zakat is obliged on it as it is obliged on gold and silver and it is valued in gold and silver. Whoever owns compulsory currency equivalent to the value of 20 Dinars of gold-i.e. 85 grams of gold-which is the Nisab of gold, or 200 Dirhams of silver-i.e. 595 grams of silver-over which a year passes, then Zakat is obliged upon it and he must give quarter-tithe.

Zakat on gold is paid in gold, representative currency and reliable currency. Zakat on silver is paid in silver, representative currency and reliable currency. Similarly, Zakat on gold can be paid in silver and compulsory currency while Zakat on silver can be paid in gold and compulsory currency, as they are all currencies and prices. So some of them can take the place of others and some of them can be paid in the place of others for the objective is verified in this. It has been mentioned in the chapter of Zakat on crops and fruits the evidences for taking the value as a substitute for the property upon which Zakat is obliged.

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20 The Zakat of Silver and Gold

The Zakat of silver and gold, whether in currency or not, is obliged by the Sunnah and Ijma’a as-Sahabah. As for the Sunnah, this is due to what Abu Hurayra narrated: The Messenger of Allah (saw) said: “No owner of gold or silver who fails to give their due right except that he will have sheets of fire made for him on the Day of Judgement. They will be heated in the Hellfire then used to burn his sides, forehead and back. Whenever they cool they are reheated to him in a Day whose length is 50,000 years long until it is judged between the people and he is shown his path, either to Paradise or to the Fire” (narrated by the five except At-Tirmizi). Also he said: “Whoever is given wealth by Allah (swt) and fails to pay its Zakat then his wealth will be presented to him on the day of judgement as a bald snake with two spots above its eyes and it surrounds him on the Day of Judgement. Then it will hold him by two sides of his jaw and it will say: I am your wealth, I am your hoarded treasure.” Then he recited:

“Let not those who covetously withhold of the bounties which Allah (swt) has given them of His grace think that it is good for them. Soon shall what they covetously withhold be tied to their necks like a twisted collar on the Day of Judgement.” [Al-Imran: 180] (narrated by the five except Abu Dawud).

As for Ijma’a, the companions had a consensus without anyone disagreeing upon the obligation of Zakat on silver and gold.

The Nisab Amount of Silver

The least amount of silver upon which Zakat is obliged is five ounces due to his saying: “There is no Sadaqah on anything less than five ounces” (agreed upon). Its amount is counted as 200 Dirhams because each ounce is 40 Dirhams. From Ali b. Abi Talib who said: “Five Dirhams (are due) in every 200 Dirhams.” Muhammad (saw) b. Abdur Rahman al-Ansari narrated that in the book of the Messenger of Allah (saw) , and the book of ‘Umar ibn Al-Khattab, on Sadaqah (there was stated): “Nothing is taken from silver until it reaches 200 Dirhams.” Thus if silver is less than 200 Dirhams, even by just one Dirham, then no Zakat is obliged upon it, due to its being less than five ounces. The Messenger of Allah (saw) did not oblige Zakat in what is less than five ounces.

The Dirhams against which the Nisab is considered are the Shari’ah Dirhams. Every ten of them are equivalent to the weight of seven Mithqal of gold. Each Dirham is equivalent to seven-tenths of a mithqal. This is the Shari’ah Dirham against which is measured the Nisabs of Zakat, the value of Jizya, blood-monies, the Nisab of cutting for stealing etc.

The dirham’s weight in grams utilised today is 2.975 grams, so the weight of the Nisab of Zakat in silver-which is 200 Dirhams-becomes 595 grams. It includes the minted silver as currency as well as the dust (Tibr) or ingots (Sabaik). If the silver is mixed with lead, copper or other types of minerals such that its pure content reaches the Nisab of silver, then Zakat is obliged and taken from the amount of pure silver in it.

The Amount of Zakat Obliged on the Nisab of Silver

If silver reaches the Nisab of Zakat and a full year passes over it, then quarter-tithe is obliged in it i.e. five Dirhams are obliged in the Nisab which is 200 Dirhams. This has been established by the Sunnah. On the authority of Abu Bakr As-Siddiq it is narrated that the Prophet (saw) said: “Quarter-tithe in the Riqqa.” Ar-riqqa is the minted silver. Bukhari narrated the Prophet (saw) ’s saying: “Bring the Sadaqah of the Riqqa as a Dirham for every forty, and there is nothing due on one hundred and ninety.” From Muhammad (saw) b. Abdur Rahman al-Ansari who said that in the book of the Messenger of Allah (saw) , and the book of ‘Umar, on Sadaqah there is the following: “Nothing is taken from silver until it reaches 200 Dirhams.” The five Dirhams obliged in the Nisab of Zakat are equivalent to 14.875 grams, as the dirham’s weight is 2.975 grams.

The Nisab amount of Gold and what Zakat is Obliged in it

The least amount of gold in which Zakat is obliged is 20 Dinars. If it is less than 20 Dinars, even by only one (Qirat), then no Zakat is obliged in it. Ali b. Abi Talib was reported to have said: “One-half Dinar in every 20 Dinars, and one Dinar (is due) in every forty Dinars.” From Amru b. Shuaib from his father from his grandfather from the Prophet (saw) who said: “There is no Sadaqah on whatever is less than 20 Mithqal of gold.” Gold is counted together in all its parts, from the unbroken to the broken, the coined (Madhruba), to the dust (Tibr) or ingots (Sabaik), all is counted as one with regards to the amount.

As for what is obliged in the Nisab of gold as Zakat, this is quarter-tithe (2.5%) i.e. one-half Dinar in the Nisab, which is 20 Dinars, and one Dinar in forty Dinars due to the above-mentioned Hadith.

Whatever is more than the Nisab of gold and silver is subject to the same assessment, i.e. quarter-tithe, whatever the increase, whether small or large. This is different from the rule of livestock where what is between two Nisab amounts is forgiven such that there is no Zakat in it. As for gold and silver, there is Zakat in every increase upon the Nisab, and there is only one Nisab. Whatever is more than the Nisab takes the rule of the Nisab and its Zakat is collected i.e. quarter-tithe is taken from it.

The weight of the Nisab of gold of 20 Dinars is 85 grams of gold. The weight of the half-Dinar obliged in the Nisab of Zakat is 2.125 grams gold as the Dinar’s weight is 4.25 grams of gold.

No Zakat is obliged on the Nisab of gold and silver except if a full year passes over it, where the Nisab is complete from the beginning to the end of the year. On the authority of Aisha, she said: ‘I heard the Messenger of Allah (saw) say: “There is no Zakat in property until a year passes over it.’” As for a person who owns less than the Nisab of gold or silver at the beginning of the year then he gains wealth so that he completes the Nisab before the end of the year, his year begins from the time the Nisab is completed, such that when a full year passes, only then is Zakat obliged on it.

However if the Nisab of gold and silver is complete from the beginning of the year and it increase during the year then if the increase emanated from trade it is added to the original amount (Asl). This is because the year of the increase is considered the same as the year of the original amount, for the increase is of the growth of the original money, and is of its own type, so it has the same rule.

However, if the increase was of the Nisab’s type but it did not come through the means of growth such as if it came from inheritance or donation, then a full year must pass upon this increase. It is not added to the original amount nor does it take the rule of its year. Similar to this is when the increase comes from a different type of wealth like an increase in livestock. This is not added to gold and silver and a full year must pass over it before Zakat is obliged when it reaches the Nisab. The Nisab of gold is not completed by silver, nor is the Nisab of silver completed by gold, as they are two different types. This is similar to the fact that the Nisab of dates is not completed by raisins nor is the Nisab of camels completed by cattle, because the Hadith says: “There is no Sadaqah in what is less than five ounces.” Moreover, the Messenger (saw) made them two different types and allowed quantitative differences between them in exchange transactions.

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19 The Zakat of Crops and Fruits

The Zakat of crops and fruits is obliged by the Book and the Sunnah. As for the Book, there is the saying of the Allah (swt) :

“And give its right the day of its harvesting” [Al-Anam: 141] As for the Sunnah, there is the saying of the Prophet (saw) : “There is no Sadaqah on anything less than five (Awsuq)” (agreed upon). Awsuq is plural of Wasq which is a measure of 60 sa’a and the Sa’a is 2.176 kg. Also ibn ‘Umar narrated from the Prophet (saw) who said: “There is tithe (‘Ushr) on land which receives its water from the sky, a river or was ‘Athariyya (trees or plants watered by rain). There is half-tithe on land which was irrigated by a bucket from rivers or wells” (collected by Bukhari).

The types of Crops and Fruits upon which Zakat is obliged

Zakat is obliged upon wheat, barley, dates and raisins due to what Musa b. Talha narrated from ‘Umar who said: “Verily the Prophet (saw) only decreed the sunnah Zakat in these four: wheat, barley, dates and raisins.” Musa b. Talha also said: “The Messenger of Allah (saw) also commanded Muaz b. Jabal-when he sent him to Yemen-that he should take Sadaqah from wheat, barley, dates and grapes.” These Ahadith clarify that the Zakat in crops and fruits is only taken from these four types, namely wheat, barley, dates and raisins. It is not taken from other types of crops and fruits. This is because the first Hadith begins with the word “Innama” which indicates restriction. What also emphasises the limiting of Zakat in these four types is what was collected by Al-Hakim, Al-Bayhaqi and At-Tabarani from the Hadith of Abu Musa and Muaz when the Prophet (saw) sent them to Yemen to teach people the matters of their deen; so he said: “Don’t take Sadaqah except from these four: Barley, wheat, raisins and dates.” Al-Bayhaqi said of this Hadith: Its narrators are trustworthy and it has a continuous transmission. This Hadith is explicit in limiting the taking of Zakat in crops and fruits in these four types, because the word “Illa” (except) if preceded by the article of negation or prohibition would mean restricting what is before it to what is after it i.e. restricting the taking of Sadaqah to the four types mentioned after it. These are barley, wheat, raisins and dates.

Also as the words wheat, barley, dates and raisins which came in the Hadith are defective nouns (not derived), then these words do not cover others whether through their direct meaning (Mantuq), their indirect meaning (Mafhum) or by indispensable indication (Iltizam). This is because they are not descriptive nouns (Asma Sifaat) or nouns of meanings (Asma Ma’ani); rather they are limited to the specific assets (‘Ayaan) that are named or mentioned. Therefore one could not derive from their wording the meaning of nourishment (i.e. food) or dryness or storage as their wording does not indicate these meanings or descriptions. These Ahadith that restrict the obligation of Zakat to these four types of crops and fruits specify the general wording present in the Ahadith: “There is tithe on that land which gets water from the sky, and half-tithe on that land irrigated by a pot or Daliya (a sort of bucket).” So it means that tithe is due on whatever was watered by the sky of wheat, barley, dates and raisins and what was irrigated by a pot, Gharab or buckets.

Zakat is not obliged on other than these four types of crops and fruits. Therefore, no Zakat is taken from maize, rice, beans, chickpeas, lentils or other types of grains and legumes. Similarly, it is not taken from apples, pears, peaches, apricots, promenade, oranges, banana or other types of fruits because these types of grains and fruits are not included by the words wheat, barley, dates or raisins. Also there is no authentic and genuine text, Ijma’a or analogy ( Qiyas) covering them. This is because Zakat is of the worships (‘Ibadat) and analogy (Qiyas) does not function in worships which are strictly limited to the text. Likewise Zakat is not taken from vegetables such as cucumber, squash, aubergine, turnip, carrots etc. It has been narrated from ‘Umar, Ali, Mujahid and others that there is no Sadaqah on vegetables as narrated by Abu Ubaid, Al-Bayhaqi and others. The Nisab of Crops and Fruits

The lowest Nisab of crops and fruits upon which Zakat is obliged is five Awsuq. So if wheat, barley, dates and raisins do not reach five Awsuq there is no Zakat upon them, due to what was narrated from Abu Said al-Khudri who said: “The Messenger of Allah (saw) said: “Nothing is taken until it reaches five Awsuq.” Also from Jabir who said: “Sadaqah is not obliged except on five Awsuq” (collected by Muslim). The Wasq is sixty Sa’a as Abu Said and Jabir narrated from the Prophet (saw) who said: “The Wasq is sixty sa’a.” The Sa’a is four amdad and the mudd is 1 1/3 Baghdadi ounces. The Sa’a is equivalent to 2.176 kilograms and the wasq is equivalent to 130.56 kilograms of wheat. So the weight of five Awsuq - which is the Nisab of Zakat-of wheat is 652 kilograms. This weight differs from the weight of barley, dates and raisins as these are not of equal weight for the same volume measure, and the Nisab depends upon the volume not the weight, because Zakat is related to it as was stated in the relevant Ahadith.

The time of collecting the Zakat in Grains and Fruits

If the grains and fruits produced by the land reach five Awsuq, the Zakat on grains is taken after it is harvested, ground and cleaned. While in fruits it is taken after they dry such that the fresh dates (Rutab) become dates and grapes become raisins. The passing of a year is not a condition, instead it is the harvesting, cleaning and drying due to the saying of Allah (swt) ta’ala:

“And give its right the day of its harvesting” [Al-Anam: 141]

Also the Sunnah indicated that Zakat is taken after fresh dates and grapes dry such that they change into dates and raisins and after grains are harvested, ground and cleaned.

Estimation of Fruits

It is obligatory upon the State to send evaluators (Khurraas) to estimate thr fruits that people have from their palm trees (an-Nakhl) and grapes after their ripeness becomes apparent. This is due to what Attab b. Usayd narrated: “The Prophet (saw) used to send persons to the people to evaluate their grapes and fruits” (narrated by Abu Dawud, ibn Majah and At-Tirmizi). Using different wording, Attab said: “The Prophet (saw) commanded that grapes be estimated just like palm trees and its Zakat taken as raisins just like the Zakat of palm trees is taken as dates. The Prophet (saw) used to do that, so he estimated a garden of a woman living in Wadi Al-Qura.” (narrated by Imam Ahmad in his Musnad). Abu Bakr acted according to this as did the Khulafa’a after him.

The estimators should leave a third or a fourth of their estimation as a dispensation to fruit owners as they require this for eating and feeding their guests, neighbours, families, friends, passers by, those who ask them and for the food of birds that feed upon them. Sahl b. Abu Huthma narrated that the Messenger of Allah (saw) used to say: “When you estimate, take and leave behind a third. If not a third, then leave behind a fourth” (narrated by Abu Dawud, At-Tirmizi and An-Nisai). Makhul said: “When the Messenger of Allah (saw) sent evaluators he would say: ‘Be lenient, for there are fruits that are lost due to bad weather, fruits that fall down and those that are used by the eaters.’” Wheat and barley are not estimated as that was not done by the Messenger of Allah (saw) ; also their estimation is not easy as is the situation with palm trees and grapes. Also the fruits of palm trees and grapes are eaten fresh so they are estimated upon their owners as a dispensation for them so as to enable them to eat of the fruits and dispose of through sale, food, gifts etc... after which they pay Zakat upon what was estimated. Dates and grapes are estimated in all their types collectively, whether good or bad, and are then collected together. However dates are not gathered together with grapes just as wheat is not gathered together with barley.

If the fruits suffer damage after estimation and before drying, or are damaged without deliberate negligence or are stolen before and after drying, the owner is not responsible for the estimated amount nor is Zakat obliged upon them unless what remains is equivalent to the Nisab.

The Amount of Zakat taken on Crops and Fruits

If the wheat, barley, dates or raisins produced from the land reach five Awsuq then one-tenth (tithe) is obliged on them if they are watered without personal effort i.e. manually. This includes being watered by rainwater from the sky, rivers or they drink water by extraction of water by its roots, without being watered similar to trees that are planted in land where water is near to the surface or close to a river or irrigation canal such that their tree-roots reach to water without any need for irrigation. Half-tithe is obliged in what is irrigated with effort, like drawing from wells by watering cans and rivers by water wheels. From ‘Ali who said: “The tithe in what was watered by the sky and half-tithe in what was irrigated by drawing from wells and rivers.” Bisr b. Said said: “The Messenger of Allah (saw) obliged Zakat of the tithe in what is watered by the sky, that which is not watered or watered by springs, and half-tithe in what was irrigated by water scoops.” Hakam b. Utayba said: “The Messenger of Allah (saw) wrote to Muaz when he was in Yemen: ‘The tithe in what was watered by the sky or river (Ghayla), and half-tithe in what was irrigated by bucket (Gharb).’” The majority of the year is what is relevant in relation to irrigation. If it is watered most of the year without effort, then the tithe is taken, whereas if it is irrigated by effort most of the year, then half-tithe is taken. If it is watered for half of the year without effort, and irrigated with effort in the second half, then threequarter tithe is taken.

How to collect Sadaqat in Crops and Fruits

The principle in the Zakat of crops and fruits is to be taken from the same crop or fruit in which Zakat is obliged. Its average is taken, not the best nor the worst. It is not allowed for the Sadaqah collector to aim to take the best of the crops and fruits in Sadaqah due to the Prophet (saw) ’s statement: “Avoid the best of their wealth.” Similarly it is not allowed for the crops or fruits owner to intend to give the worst crops and fruits for Sadaqah, due to the saying of Allah (swt) :

“Do not aim at getting anything bad in order that you may give away something of it” [Al-Baqarah: 267]

Also the Prophet (saw) prohibited taking the Ja’arur and Lawn al-Hubayq in the Sadaqah (narrated by An-Nisai). These are two types of bad dates; the first becomes shell around a seed, and the latter becomes bad dates (Hashaf) when it dries.

It is permissible in the Zakat of crops and fruits to take their equivalentin currency or otherwise-instead of taking the exact amount of crop or fruit. This is due to what Amru b. Dinar narrated from Tawus: “The Prophet (saw) sent Muaz to Yemen and he used to take clothes for the Sadaqah of wheat and barley.” Also because there is a type of palm tree whose fresh dates do not become dates, as one finds a type of vine tree grape which does not become raisins, so their value is taken instead. It has been narrated from Muadh in the same subject of Sadaqah that he would take goods instead; this is in his statement: “Give me a fifth or dress which I take from you instead of Sadaqah. It is easier for you and more beneficial for the Muhajirin in Madinah.” It is also found in the Sunnah that the Messenger of Allah (saw) and his companions would oblige a right in money then change it to something else easier for its giver to give than the original money. Of this is the book of the Prophet (saw) to Muaz in Yemen on Jizya: “Upon each mature person is a Dinar or its equivalent in clothes (Mu’afir).” So the Prophet (saw) took goods instead of taking the specific thing itself i.e. he took clothes instead of gold. Of this also is what he wrote to the people of Najran: “Upon them two thousand garments every year or its equivalent in ounces of gold and silver.” ‘Umar (RA) used to take camels in Jizya instead of gold and silver, as Ali used to take needles, ropes and large needles in Jizya instead of gold and silver.

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18 Zakat of Livestock Camels

The first Nisab for camels is five, due to the Hadith of Abu Said al- Khudri from the Prophet (saw) : “There is no Sadaqah on anything less than five camels.” The camels must be from 5-9 camels as there is no Zakat on whoever owns less than five camels.Whoever owns five grazing camels, which graze for most of the year, then a female sheep is obliged upon him. The Nisab of camels, and what is obliged upon them, is as follows:

1. For five camels, one sheep

2. For ten camels, two sheep

3. For fifteen camels, three sheep

4. For twenty camels, four sheep

Zakat is only due when the Nisab reaches the levels mentioned above. Any amount between any two Nisabs mentioned above is not counted. Thus, for example, twelve camels incur the same Zakat as ten, and seven camels the same as five. There is nothing imposed upon more than twenty camels until the number reaches twenty-five. When this happens, Zakat is no longer taken in sheep but in camels. Al-Laith bin S’ad said: “This is the book of Sadaqa: Upon twenty camels and what is below that, a sheep upon every five camels.” Al-Laith said: “Naf ’i narrated to me that this is the transcription of ‘Umar ibn Al-Khattab’s book.” Malik bin Anas said: “I read the book of ‘Umar ibn Al-Khattab on Sadaqah and it said within it: ‘In the name of Allah (swt), Ar-Rahmaan, Ar-Raheem. This is the book of Sadaqah. Up to twenty four camels, a sheep in every five camels.’” When they reach twenty-five camels, then the Nisab and what is obliged upon them is:

1. For twenty-five camels, a baby (Makhadh) of female camels which has reached one year and entered into the second. Al-Makhadh is the pregnant one. In other words a female camel that has entered the time of being pregnant. If the owner of the camels does not have a baby (Makadh), then a male milk-bearing camel (Labun), which has reached two years and has entered into the third, is taken.

2. For thirty-six camels, a female milk-bearing camel (Labunah) which has reached two years and has entered into the third. It is given this name because her mother is about to give birth such that it becomes milk bearing.

3. For forty-six camels, a female (Hiqqah) on its way to a male animal (Taruqat al-Fahl) which has reached three years and has entered into the fourth. The meaning of (Taruqat al-Fahl) is that it is fit to be approached by a male.

4. For sixty-one camels, a Jaza’a which has reached four years. It is given this name because its front teeth have fallen.

5. For seventy-six camels, two female milk-bearing camels.

6. For ninety-one camels, two females (Hiqqah) which are on the way to be ing approached by a male.

There is no Zakat between any two previously mentioned numbers. If the number of camels increases over ninety-one, there is no extra Zakat upon them until they reach one hundred and twenty one camels. If they reach this number then the counting changes such that a female milk-bearing camel is taken for every forty and a Hiqqah for every fifty.

The Nisab and what is obliged becomes as follows:

The Nisab of Camels

What is Obliged

1. 121 camels

2. 130 camels

4. 150 camels

5. 160 camels

6. 170 camels

7. 180 camels

8. 190 camels

9. 200 camels

3 female milk-bearing camels (Bint Labun)

1 Hiqqah and a female milk-bearing camel

3 Hiqqah

4 female milk-bearing camels

1 Hiqqah and 2 female milk-bearing camels

2 Hiqqah and 2 female milk-bearing camels

3 Hiqqah and 1 female milk-bearing camel

4 Hiqqah or 5 female milk-bearing camels

There is no Zakat on an increase between two numbers. The evidence for all this is what was narrated by Anas, that Abu Bakr wrote to him in this book when he sent him to Bahrain: “In the name of Allah (swt), Ar-Rahmaan, Ar- Raheem. This is the obligation of Sadaqah which the Messenger of Allah (saw) obliged upon the Muslims and which Allah (swt) commanded His Messenger (saw) with.Whoever requests it from the Muslims in the correct manner, then he should be given; but whoever asks for more should not be given. Up to twenty-four camels, it is taken as sheep, with a sheep taken in every five.When they reach twenty-five up to thirty-five, a female Bint Makhadh is taken. When they reach thirty-six to forty five, a female milk-bearing camel (Bint Labun) is taken. When they reach forty-six up to sixty, a Hiqqah on its way to a male is taken. When they reach sixty-one up to seventy-five, a Jaza’a is taken. When they reach seventy-six up to ninety, female milk-bearing camels are taken. When they reach ninety-one up to one hundred and twenty, two hiqqah on the way to a male are taken.When they increase beyond one hundred and twenty, a female milk-bearing camel in every forty and a hiqqah in every fifty is taken. Whoever does not own more than four camels then there is no Zakat upon him unless if the owner himself wishes. But a sheep is due when they reach five camels.”

If there does not exist a camel of the age which is obliged among the camels and a lower-age (camel) is taken, then the camels’ owner must give a further two sheep on top of that or twenty Dirhams. If an older camel is taken, then the owner of the camels must be given two sheep or twenty Dirhams. Twenty Dirhams are equivalent to 59.5 grams of silver. An example of this is as follows: when the camels are forty-six then a Hiqqah is obliged. If the camels’ owner has no hiqqah but he has a female milk-bearing camel, then he must give two sheep, or twenty Dirhams, in addition to the milkbearing camel. If he has no female milk-bearing camels but he has a Jadh’a, then he must be given either two sheep or twenty Dirhams. All this is due to what was narrated by Anas: “That Abu Bakr wrote to him the obligation of Sadaqah that Allah (swt) commanded His Messenger (saw) . Whoever must give a Jaza’a as Sadaqah for the camels yet doesn’t have a Jaza’a but instead has a Hiqqah, then the Hiqqah is accepted from him and he must give together with it two sheep if that is easy for him or twenty Dirhams. And whoever must give a hiqqah as Sadaqah for the camels yet doesn’t have a Hiqqah but instead has a Jaza’a, then the Jaza’a is accepted from him and the Zakat collector should give him twenty Dirhams or two sheep.”

The Sadaqah of camels is taken from their type and description. So the Bukhti camel is taken from the Bukhti camels, the ‘Irabi camel from the Irabi camels, the noble camel from the noble camels, the fat camel from the fat camels, and the defected and skinny camel from defected and skinny camels. Neither the decrepit, one-eyed or sick camels are taken. It is narrated that the Prophet (saw) said: “Whoever does these three things has enjoyed the taste of belief: whoever worships Allah (swt) alone, and that there is no god but Allah (swt), and gives the Zakat on his wealth with delight every year it is due, and he does not give of the very old, filthy, the sick nor the defected, but of the average standard of your wealth. For Allah (swt) does not ask you of its best nor does He command you of its worst.”

Cattle (Cows)

The Zakat of cattle is obliged by the Sunnah and Ijma’a as-Sahabah. As for the Sunnah, this is due to what was narrated by Abu Dharr that the Prophet (saw) said: “No owner of camels, cattle or sheep will fail to give their due right except then will come bigger and fatter than they were on the Day of Judgement to butt him with their horns and trample him with their hoofs” (agreed upon). As for Ijma’a as-Sahabah, verily they agreed upon the obligation of Zakat upon cattle.

Zakat is obliged on grazing cattle that graze most of the year; these are the ones taken and reared for progeny and increase. As for working cattle, there is no Zakat upon them. From Ali who said: “There is no Sadaqah upon working cattle.” Amru b. Dinar said that it reached him that the Messenger of Allah (saw) said: “There is no Sadaqah on Muthira bulls which are used for ploughing the soil.” Jabir b. Abdullah said: “There is no Sadaqah upon the Muthira.” The Muthira is the cow that ploughs the soil.

The first Nisab of cattle upon which Zakat is obliged is thirty.

The Nisab and what is due upon them is as follows: -

1. A Tabi’a male or female in thirty cattle. The Tabi’a is the male cow of one year old who has entered into the second. It is given that name because it has become capable of following its mother.

2. A Musinna in forty cattle. The Musinna is the female of two years who has entered into the third. The evidence for this is what was narrated by An-Nisai and At-Tirmizi: “That the Prophet (saw) sent Muaz to Yemen and commanded him to take a tabi’a from every thirty and a musina from every forty.”

3. Two Tabi’a or Tabi’ah (female) in sixty cattle.

4. A Musinna and a Tabi’a from seventy cattle.

5. Two Musinna from eighty cattle.

6. Three Tabi’a from ninety cattle.

7. A Musinna and two Tabi’a from one hundred cattle.

8. Two Musinna and one Tabi’a from one hundred and ten cattle.

9. Three Musinna or four Tabi’a from one hundred and twenty cattle.

There is no Zakat on any increase between two numbers due to what Yahya b. Al-Hakam narrated that Muaz said: “The Messenger of Allah (saw) sent me to collect Sadaqah from the people of Yemen. He commanded me to take a Tabi’a from every thirty cattle and a Musinna from every forty.” He said: ‘They offered me that I take from what is between forty and fifty, sixty and seventy, eighty and ninety but I refused and said to them: ‘Until I ask the Messenger of Allah (saw) about that.’ So I came and informed the Prophet (saw) . He commanded me to take a Tabi’a from every thirty and a Musinna from every forty, two Tabi’a from sixty, a Musinna and a Tabi’a from seventy, two Musinna from eighty, three Tabi’a from ninety, a Musinna and two Tabi’a from one hundred, two Musinna and a Tabi’a from one hundred and ten, and three Musinna or four Tabi’a from one hundred and twenty.” He said: “The Messenger of Allah (saw) commanded me not to take from what is between that.” And Muaz b. Jabal said: “The Messenger of Allah (saw) did not command me anything from awqas of cattle.” The Awqas is the plural of Waqas which is the number is between two Nisabs.

The rule of buffalo is the same as that of cattle in Zakat, and if they are together with cattle they are counted together with them in number. Malik b. Anas said: “The buffaloes and cattle are the same, the Bakhati and the ‘Irabi are the same, and the lamb and goat in the sheep are the same.” Ibn Shihab narrated that ‘Umar b. Abdul Aziz wrote to his officials: “That you take the Sadaqah of buffaloes just like you take the Sadaqah of cattle.”

Lamb, Sheep (al-Ghanam) and Goats

The Zakat of sheep and goats is obliged by Sunnah and Ijma’a as-Sahabah. As for the Sunnah, this is due to what Abu Dharr narrated from the Prophet (saw) saying: “ No owner of camels, cattle or sheep/goats will fail to give their due right except they will come bigger and fatter than they were, on the Day of Judgement to butt him with their horns and trample him with their hoofs” (agreed upon).

As for Ijma’a as-Sahabah, verily they had a collective consensus without anyone differing upon the obligation of Zakat upon sheep and goats. Zakat is obliged upon grazing sheep and goats that graze most of the year, once a full year passes after they have attained the Nisab. Abu Bakr narrated from the Prophet (saw) in a long Hadith that he said: “…and a female sheep (Shat) in grazing sheep and goats if they are forty…” and also due to his saying: “There is no Zakat on property until a year has passed over it.”

The minimum Nisab for sheep and goats is forty sheep. If they are less than forty, even by one sheep, there is no Zakat upon them. The Nisab of sheep and goats, and what is obliged upon them, is as follows: -

1. One female sheep (Shat) in a herd of forty .

2. Two female sheep (Shat) in a herd of one hundred and twenty one.

3. Three female sheep (Shat) in a herd of two hundred and one .

4. Four female sheep (Shat) in a herd of four hundred sheep.

There is no Zakat on any increase between the two Nisabs. Once the sheep and goats reach four hundred sheep, then one female sheep is taken from every one hundred sheep. There is nothing taken from any increase until another one hundred sheep are completed. So if the increase is less than one hundred sheep then there is no Zakat on them. The evidence for this is what is narrated from Muhammad (saw) b. Abdur Rahman: “Verily in the book of Sadaqah of the Prophet (saw) , and the book of ‘Umar ibn Al-Khattab, it is stated that as for sheep and goats (al-Ghanam) nothing is taken if they number less than forty. Once they reach forty then a female sheep is taken, until they reach one hundred and twenty sheep. Once they exceed one hundred and twenty, then two female sheep are taken until they reach two hundred. Once they exceed two hundred, then three female sheep are taken until they reach three hundred. He said: ‘Once the sheep and goats increase to three hundred in number, nothing is taken on anything less than a further one hundred, even if they reach ninety nine until the one hundred is completed in full. Then one female sheep is taken from every one hundred sheep. Thereafter the decrepit is not taken nor the male unless the payer of Sadaqah so wishes.’” And in the book of Sadaqat which is with the family of ‘Umar ibn Al-Khattab: “If they increase over three hundred and one there is nothing upon them until they reach four hundred upon which there are four sheep.”

What is Counted and Taken, and What is not Taken in the Zakat of Sheep and Goats

All that a Muslim owns of sheep and goats, young and old, including as- Sikhal which are the children of goats and al-Buhum which are the children of sheep, are counted on the condition that they were born before the passing of the year.

The Jaza’a (four-year old) of the lamb is taken in the Zakat of sheep which is six months old, as well as the Thaniyy of the goats which is one year old. There is no difference between the males and females. The male is taken as is the female. The average is taken, not the best or the worst.

The children of the goats are not taken, nor are the young sheep as they are not fit for Zakat. Similarly the sheep that has given birth or the one on the way to giving birth is not taken; nor is the sheep being reared for milk or meat, nor is the male sheep or goat taken, except if their owner volunteers and offers them for Zakat. In this case they are accepted and there is an extra reward for him as it is more than what it is obliged. The evidence for all this is what Beshr b. Asim narrates from his father that ‘Umar ibn Al- Khattab appointed Abu Sufyan b. Abdullah over Taif and its districts. So he went as a collector of Zakat and counted against them the Ghazi (young goat) but did not take them from them. They said to him: “If you count the Ghazi against us then you should take them, but he held back until he met ‘Umar and said: “I know that they claim we are oppressing them.We counted the Ghazi against them but did not take them.” So ‘Umar said to him: “Count against them the Ghazi, the male, and even the Sakhlat, the female that the shepherd carries on his hand. Say to them: ‘I will not take the Rubiyy, that is the one that gave birth, the one in labour, the one for milk, nor the sheep for eating. Nor will I take the one being fattened for slaughter or the male sheep goat. Instead take the ‘Inaq, the one that has not reached the year of goats, the Jaza’a (four-year old) and the Thaniyya as that is the average between of the property i.e. the Sikhal and the best of it.” Also the saying of the Prophet (saw) : “Verily our right is only in the Jaza’a and the Thaniyya.”

The very old is not taken for Zakat nor is the one with a defect due to the saying of the Glorified:

“Do not aim at getting anything bad in order that you may give away something of it” [Al-Baqarah: 267]

Also the Prophet (saw) ’s saying: “The very old is not taken for Zakat nor the one with one eye or the male goat unless the one giving Sadaqah wishes to do so.” If the collector of the Sadaqah accepts to take these types because all the sheep and goats are very old or with defect(s), then it is allowed for him to take them.

The Rule on Partners in Sheep (al-Ghanam)

The partnership or mixing in grazing sheep makes the property of the partners or two associates like the property of one man in Zakat. This is the case whether the livestock is shared jointly between them such that each one has a common unspecified share, for example if they inherit a portion, purchase them in partnership or they are gifts given to both of them so they retain them in this situation without separation or division. This may be whether they were given to them together or they were separate shares and they mixed them later on, i.e. the property of each one is distinct but they mixed them and became partners together; whether they were of equal shares or not, with regards to shepherding, pasture, male sheep (al-Fahl) or drinking place. The sheep of a partnership or mixing, irrespective of the number of partners or associates or their shares, are counted like the sheep and goats of one man in taking Zakat. They are counted as one and remain in their situation without separation or combination. If they reach forty then the collector of Sadaqah takes one sheep, if they reach one hundred and twenty one, two sheep are taken. Three sheep are taken if they reach two hundred and one, and four sheep are taken if they reach four hundred.

The collector of Sadaqah divides what he takes as Zakat from the partners or associates according to their shares in the sheep such that the least among them returns to the higher in his share due to the Prophet (saw) ’s saying: “Whatever is taken from two associates they return to each other in equality.”

The collector of Sadaqah leaves the sheep and goats as they are and counts them. It is not allowed to separate them in order to take more, eg. when there are three partners with one hundred twenty sheep with each person owning forty sheep and the Sadaqah collector aims to separate them in order to take three sheep, one from each person. This is not allowed for him rather he must leave them as they are and take only one sheep. Similarly it is not allowed for the owners of the sheep to separate them once the Sadaqah collector came to collect Zakat, in order to reduce, or eliminate, the Zakat upon them. This is when two partners or associates have 201 sheep which they divide (between them) so as to pay two sheep instead of the three if the sheep were to remain undivided due to their partnership. Similarly, they may have together forty sheep but they divide them so as not to pay anything after the division.

Just as it is not allowed to divide a group of sheep, it is also not allowed to gather them when they are separated with the intention to reduce what is to be paid from them. This is seen for example where two men have eighty sheep, each having forty sheep seperately and not in partnership. However when the Sadaqah collector comes they mix them together so as not to pay from them except one sheep instead of each paying one sheep. The evidence for the illegality of dividing a collected cattle or collecting the divided one is what Sa’ad b. Abi Waqqas narrated when he said: “The Messenger of Allah (saw) said: ‘Do not divide between a collected group, nor gather together those which are divided, for Sadaqa. And the two associators are those who gather together in male sheep, pasture, and water.’” And in another narration: “and (al-Ra’iy) shepherd.”

The Zakat of livestock is taken from what it is obliged of camels, cattle and sheep and goats. It is not allowed to take its value instead as the Ahadith texts have specified the exact thing, and the ages, to be taken of camels, cattle and sheep and goats.

If livestock such as camels, cattle, buffaloes and sheep/goats are taken for trade then their Zakat becomes the Zakat of trading merchandise not the Zakat of livestock, so their number and ages are not considered. They are assessed like trading goods in silver Dirhams or golden Dinars. If their value reaches 200 silver Dirhams-which is the Nisab of silver, i.e. 595 grams of silver on the basis that a silver dirham is equivalent to 2.975 grams of silver, or it reaches 20 golden Dinars, which is the Nisab of gold i.e. 85 grams of gold on the basis that a Dinar is equivalent to 4.25 grams of gold, then quarter-tithe (2.5%) is obliged upon it as the amount obliged on trading merchandise.

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17 Zakat

The Sadaqat which represent a revenue for the Bait ul-Mal is the Zakat. Sadaqah when mentioned generally means Zakat, and Zakat when mentioned generally means Sadaqah. Zakat linguistically means the increase, and it also means the purification. It is present in the Shar’a with both meanings because giving Zakat is a cause of blessing for wealth due to the Hadith: “The property of a person (‘Abd) does not decrease because of Sadaqah,” or reward increases because of it. It also purifies the soul from stinginess and it is a purification of sins.

It is defined in the Shar’a as a determined right due from certain types of wealth. It is one of the worships (‘Ibadat) and a basic element (Rukn) of Islam like prayer, fasting and Hajj. Zakat is obliged upon Muslims only, and is not taken from others. It’s obligation is established by the Book and Sunnah. Allah (swt) says:

“Give the Zakat” [Al-Muzzammil: 20]

The Prophet (saw) sent Mu’az to Yemen and said to him: “Inform them that Allah (swt) obliged Sadaqah upon their wealth that is taken from their rich and given to their poor.” Harsh punishments are promised to those who prevent and withhold the Zakat. Abu Hurayra narrated that the Prophet (saw) said: “No owner of gold or silver who fails to give its due right except that he will have sheets of fire made for him on the Day of Judgement. They will be heated in the Hellfire then used to burn his sides, forehead and back. Whenever they cool, they are reheated to him in a Day which is 50,000 years long, until it is judged between the people and he is shown his path, either to Paradise or to the Fire.” It was said: ‘O Messenger of Allah (saw), what of the camels?’ He said: “No owner of camels who fails to give their due right, and of their right is their milk the day they reach water, except that on the Day of Judgement a level plain will be extended for camels as most plentiful without one young camel been lost. They will trample him with their feet and bite him with their mouths. As soon as the first one passes him the last one will return in a Day which is 50,000 years long, until it is judged between the people and he is shown his path, either to Paradise or to the Fire.” It was said: ‘O Messenger of Allah (saw), what of the cows and sheep?’ He said: “No owner of cows or sheep who fails to give their due right, except that on the Day of judgement a level plain will be extended for the cows and sheep, without anyone of them being lost whether a rebellious one, or of broken horn or of scanty hair on head. They will butt him with their horns and trample him with their cloven hoofs. As soon as the first one passes by the last one will return in a Day which is 50,000 years long, until it is judged between the people. Then he will be shown his path, either to Paradise or the Fire.” (narrated by the five except At-Tirmizi)

The Zakat is a personal duty (Fardh ‘Ayn) on every Muslim who possesses the minimum amount (Nisab) in excess of his debts for the duration of a year.Whenever it becomes obligatory upon the wealth of a Muslim, it cannot be abolished. Its collection is independent of the State’s needs or the Ummah’s interests unlike the tax funds, which might be collected from the Ummah only in cases where there are no funds in the Bait ul-Mal to meet the State’s needs and the Ummah’s interests. Rather it is the right of the eight categories that the State must deliver to the Bait ul-Mal whenever it becomes due, whether there is a need for it or not. Zakat is not of the rights of the Bait ul-Mal nor is it a beneficiary from it. It is a right of the eight categories specified by Allah (swt) in the Ayah:

“Verily the Sadaqah is only for…” [At-Tauba: 60]

The Bait ul-Mal is only a place of sanctuary for it, such that the Imam will spend from it to those specified by the Ayah according to his view and Ijtihad. Zakat is obliged upon the man, woman, child and insane person due to the general form of the sound Ahadith that oblige Zakat without restriction. Amru bin Shu’aib narrated from his father from his grandfather he said: “The Prophet (saw) preached to the people and said: ‘Verily, whoever has charge over an orphan with wealth then let him invest it. He should not leave it to be eaten by Sadaqah.’” From Anas (in a Marfu’ narration): “Trade in the orphans’ wealth (so that) Zakat does not consume it.” Qasim bin Muhammad (saw) said: “Aisha used to invest our wealth, as we were orphans, and give Zakat from it.” Malik bin Anas considered that there was Zakat on the lunatic’s wealth, as did Az-Zuhri. From ibn Shihab: “That he was asked about the lunatic’s wealth, is there Zakat upon it? He said: ‘Yes.’”

Zakat is obliged on the following properties:

1. Livestock including camels, cows and sheep,

2. Crops and fruits,

3. Currency,

4. Trading goods and merchandise.

Zakat is obliged on these properties if they reach the Nisab for the duration of one year except for crops and fruits whose Zakat is due the moment they are harvested.

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