The newly ratified Zakat Act has established a comprehensive legal framework to organise the collection, management, and distribution of Zakat in the Maldives, strengthening the system in line with Islamic principles. The legislation was passed by the 20th People’s Majlis on 3 December 2025 and ratified by President Dr Mohamed Muizzu.

Under the Act, a dedicated Zakat Fund will be created to safeguard contributions, ensure proper distribution to eligible beneficiaries, and facilitate Shariah-compliant investments. The Fund will be held in a separate account maintained by the Maldives Monetary Authority (MMA), which will serve as its custodian. All monies previously held under the Zakat Fund established through the Public Finance Act will be transferred to this new Fund.

The Act places responsibility for national Zakat policy with the President, acting on the advice of the Minister responsible for Islamic affairs. This includes decisions on the collection and allocation of Zakat assets. A Zakat Council will also be established to advise the Minister and the Maldives Zakat House on system administration.

With the law coming into force, the Maldives Zakat House will become a government agency under the Ministry. All its existing responsibilities, assets, facilities, budget allocations, and legal entitlements will be transferred to this newly constituted agency.

To ensure compliance with Islamic Shariah, a Shariah Advisory Committee appointed by the President will oversee the formulation and implementation of the Zakat system.

The Act has been published in the Government Gazette and will take effect on 1 January 2026