One of the chief concerns of Shariah-compliant finance is its relationship to zakat, the system of tithing in Islam.
The concern stems from the fact that, under Shariah, one of the eight acceptable destinations for zakat money is to those fighting in the way of Allah.
We have covered this extensively on SFW for years.
Some zakat donations come from Shariah-compliant institutions themselves and, in some cases, Shariah-compliant institutions serve as a conduit for the zakat donations of their customers.
This is the case with Bank Nizwa in Oman, a country that has seen a sharp increase in Shariah finance over the past 3 years:
Bank Nizwa , Oman’s first Islamic Bank, is fulfilling its promise to be the leader in Islamic banking across Oman, by making it easier for its customers to pay their Zakat.
Customers can now easily transfer the required amount from their accounts into the allocated Ministry of Religious Affairs account at Bank Nizwa . They can also deposit cash directly into this account. Customers who regularly wish to transfer Zakat can set up a standing order.
Bank Nizwa customers who choose to pay their Zakat through the afore mentioned Bank Account are assured of a waiver of fees on all standing orders linked to this account. There are also fee waivers on internal, local and International transfers associated with this account.