ABU DHABI // Official zakat contributions doubled in the first half of the year to just more than Dh15 million, according to figures announced yesterday. Donations soared from less than Dh8m in the same period last year. The number of people contributing to the Zakat Fund, the government body that distributes alms revenue, also rose by 25 per cent. If the trend continues, the fund could be heading for record contributions during the holy month of Ramadan, when many Muslims choose to pay the annual tax, and charity donations spike.
Last year the fund brought in Dh60m. It will announce its target for Ramadan early next month. Abdullah al Muheiry, the fund's secretary general, said the increase was due to greater trust in the fund, which in turn flowed from "transparency through regular reports, with which we are engaging zakat contributors to inform them of the fund's spending". "Money is not reduced by charity," said Mr al Muheiry, referring to a saying by the Prophet Mohammed. "Organisations and individuals that maintain the zakat, God blesses them in their money."
Muslims believe that doing good and adhering to the pillars of Islam has hidden benefits, he said. "From our side, we tried increasing transparency, the quarterly reports to donors, media campaigns and engagement," he added. Zakat is the third pillar of Islam, mandatory for every Muslim who is financially able to contribute. It is calculated at 2.5 per cent of financial assets, but has different rates for a variety of other sources of wealth, such as livestock and minerals.
The proliferation of media, from religious television programmes to text messages, that inform individuals of their zakat duties has contributed to a "religious awakening", said Khaled Abdul Alim, a prominent Islamic cleric based in Dubai. Previously, some Muslims did not pay the annual tax because they contributed to charities throughout the year, he said. That missed the point that zakat is an obligation, not an option, he said.
In addition, rich Muslims may perceive economic crises as punishment from God and seek to absolve their sins by paying off the zakat, Mr Abdul Alim said. Officials at the Zakat Fund regularly visit prominent donors such as sheikhs, government officials and businessmen. The fund issues regular reports revealing revenue and expenditure to donors, and spreads awareness of its projects. A legal committee within the organisation, comprising top Islamic scholars from around the country, determines whether zakat money is being spent legally.
But despite the rise in contributions, people are still not giving enough, Mr al Muheiry said. "The revenue does not equal the amount of money being invested in the country," he said. "It is important to increase zakat revenues to match the increase in the deserving." The deserving, under sharia, include the needy who fall under a minimum threshold of annual income, families that are too proud to ask for monetary assistance, and individuals who are unable to pay off their debts.
"There are many people who do not pay the zakat because of ignorance or stinginess," said Dr Abdul Alim. Many still do not trust charities and prefer to give out money themselves to the needy, he said. The fund has other programmes that assist the families of inmates and pay for the treatment of people with a range of serious illnesses. One project called iqra that pays for the education of school and college-age students.
In last week's Friday sermon, worshippers were urged to use the fund as the method of choice to distribute money collected from zakat. "The fund collects donations and gives it to those who deserve it through studied standards and regulations," it was said. The Zakat Fund was created in 2003 by the late Sheikh Zayed, founder of the UAE. In March, a survey by YouGov Siraj showed that a third of Middle East residents, most of them from the UAE, did not trust charity groups, due to what they claimed was poor communication and transparency.
Dr Abdul Alim said he applauded the fund's method of distributing contributions, as individuals often spent zakat on people who are not among those recogised as deserving. kshaheen@thenational.ae
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UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
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Company%20profile
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Trump v Khan
2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US
2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks
2019: Trump calls Khan a “stone cold loser” before first state visit
2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.
Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”
The Bloomberg Billionaire Index in full
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least 17 staff members
May 20 2020: PM and Carrie attend 'bring your own booze'
party
Nov 27 2020: PM gives speech at leaving do for his staff
Dec 10 2020: Staff party held by then-education secretary
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
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UAE currency: the story behind the money in your pockets
Company Fact Box
Company name/date started: Abwaab Technologies / September 2019
Founders: Hamdi Tabbaa, co-founder and CEO. Hussein Alsarabi, co-founder and CTO
Based: Amman, Jordan
Sector: Education Technology
Size (employees/revenue): Total team size: 65. Full-time employees: 25. Revenue undisclosed
Stage: early-stage startup
Investors: Adam Tech Ventures, Endure Capital, Equitrust, the World Bank-backed Innovative Startups SMEs Fund, a London investment fund, a number of former and current executives from Uber and Netflix, among others.