Malaysia Proposes Reviving Global Zakat Organisation to Support Poor Muslim Communities Worldwide ISLAM GLOBAL NEWS | HALAL ECONOMY & ISLAMIC FINANCE By Islam Global News Editorial Desk ISTANBUL, TÜRKİYE | November 8, 2026 Malaysia has proposed reviving the International Zakat Organisation (IZO), an initiative intended to coordinate Zakat collection and distribution across countries and provide greater financial support to disadvantaged Muslim communities worldwide. Malaysian Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced the proposal on November 8 following his four-day working visit to Türkiye. The proposal aims to strengthen international cooperation in Islamic charitable finance, particularly to assist poorer Muslim-majority countries and Muslim minority communities. What Is the International Zakat Organisation? The International Zakat Organisation was established in 2008 as an initiative developed under the auspices of the Organisation of Islamic Cooperation (OIC). According to Ahmad Zahid, the original initiative was proposed by the late Saudi Islamic banking pioneer Sheikh Saleh Abdullah Kamel. At that time, Malaysia's initiative had an initial fundraising target of RM10 billion over five years. Ahmad Zahid recalled that he had chaired the organisation's board of directors while serving as a minister in the Prime Minister's Department in 2008. The latest proposal seeks to revive the initiative and explore ways to strengthen international Zakat cooperation. How Could Global Zakat Funding Work? Malaysia has suggested several possible sources of funding. These include: - Contributions from financially stronger Muslim countries. - Greater coordination of international Zakat resources. - Exploring mechanisms involving unclaimed interest from petrodollar-related bank deposits. Ahmad Zahid explained that some financial institutions and deposit holders do not retain interest income because they consider it prohibited under Islamic principles concerning Riba. Malaysia has suggested exploring whether such funds could be channelled through an appropriate international mechanism. However, this remains a proposal requiring further discussions, legal arrangements and Shariah guidance. No final funding mechanism or agreement has yet been announced. Supporting the Eight Categories of Zakat Recipients One of the central objectives is to support the eight categories of eligible Zakat recipients identified in the Qur'an, Surah At-Tawbah, verse 60. These categories are: 1. Al-Fuqara: The poor. 2. Al-Masakin: The needy. 3. Al-Amilina Alayha: Those administering Zakat. 4. Al-Mu'allafati Qulubuhum: Those whose hearts are to be reconciled. 5. Fir-Riqab: Those seeking liberation from bondage. 6. Al-Gharimin: Those burdened by qualifying debts. 7. Fi Sabilillah: Those serving in the cause of Allah, subject to recognised scholarly interpretations. 8. Ibn Al-Sabil: Stranded travellers. The proposed international organisation could help direct resources towards eligible recipients in poorer Muslim countries and communities where Muslims form a minority. Why This Could Matter to Muslim Communities If successfully developed, an international coordination system could help strengthen several areas of social development: Education: Financial assistance for disadvantaged students and educational institutions. Healthcare: Support for medical services, treatment and healthcare access for vulnerable families. Poverty reduction: Assistance with essential living expenses and sustainable livelihood programmes. Emergency relief: Coordinated support for communities affected by conflict, disasters and displacement. Economic development: Greater access to skills training and income-generating opportunities. The actual impact would depend on participating countries, available funds, transparent administration and compliance with applicable Shariah requirements. Malaysia Also Seeks Stronger Halal Industry Cooperation with Türkiye During the same working visit, Malaysia discussed expanding cooperation with Türkiye in the global halal industry. Ahmad Zahid highlighted Malaysia's 52 years of experience in halal certification and said the country wanted to expand its international partnerships. The discussions covered halal products beyond food and beverages, including pharmaceuticals, cosmetics and vaccines. He cited a projection that the global halal market could reach US$1.3 trillion by 2030. A New Opportunity for International Islamic Finance The proposed revival of the International Zakat Organisation could become an important development in global Islamic social finance. However, the initiative is still at the proposal stage. Governments, Islamic financial institutions and relevant religious authorities would need to agree on its structure, governance, funding arrangements and distribution mechanisms. The next important step will be whether Malaysia can build international support for the proposal and turn it into a functioning institution. ISLAM GLOBAL NEWS will continue monitoring developments in global Zakat cooperation, Islamic finance and humanitarian support for Muslim communities worldwide