Analysis of fatwa in Malaysia on the provision of housing using zakat fund

• Main Author: Ahmad Sarkawi, Azila
• Format: Proceeding Paper
• Language: English
• Published: Badan Amil Zakat Nasional (BAZNAS) Indonesia 2019
• Subjects: BPH531 Zakat; T Technology (General); T173.5 Technology and Islam
• Online Access: http://irep.iium.edu.my/108031/1/108031_Analysis%20of%20fatwa%20in%20Malaysia.pdf; http://irep.iium.edu.my/108031/; https://iconz.baznas.go.id/submission/index.php/proceedings/article/view/135

The usage of zakat fund for housing assistance such as rental, repair, deposit, and construction of a specified size of house unit is well-known in Malaysia. In fact, they have been included in the zakat disbursement schemes. The emerging issue, however, is the development of mass housing using zakat fund. If the mass housing development is meant to accommodate asnaf (zakat recipient), it posed a less religious issue. If it is for the purpose of investment that the proceeds will be spent for asnaf, it invites a discussion on its permissibility from shariah perspective. Seemingly, the critical issue is the degree of directness of the benefits and their possibilities to reach the recipients. Hence, it is the purpose of the study to analyze the current religious rulings in kind of fatwa in Malaysia related to zakat. Consequently, 68 fatwas on zakat shortlisted from the Department of Islamic Development (JAKIM), the Department of Awqaf, Zakat and Pilgrimage (JAWHAR) and the Selangor Mufti Department compilation were studied. Content analysis was adopted for that purposes. The study found that there is no direct fatwa related to this kind of mass housing development. However, Selangor has a general fatwa on the investment of zakat fund from ‘amil portion subjected to strict conditions and the building of a hostel for asnaf. The study concluded that the matter is ijtihadi and proposed areas that require shariah rulings based on the construction procurement processes, later on, to be developed as a guideline for zakat funded houses.