Do You Actually Owe Zakat? Most Young Muslims in the UAE Don’t Know

Zakat is a financial duty, not just charity. If you have savings, gold, or a side hustle, you might owe it. Learn who pays, how it works, and why it matters in the UAE.

So, What Is Zakat?

Zakat (Arabic: الزكاة) means “purification” — and in Islam, it’s a mandatory act of giving. You’re not donating for extra good deeds. You’re giving a fixed portion of your wealth to those who need it, because it’s their right and your responsibility.

It’s the third pillar of Islam, right after prayer and before fasting.

Why Zakat Still Matters in 2025

Even if you’re working your first job, building savings, or investing in crypto — Zakat isn’t just for “rich uncles.” It’s designed to:

• Keep wealth circulating fairly
• Reduce inequality
• Help you stay grateful and grounded
• Purify your money from greed or excess

In short: Zakat isn’t optional if you qualify. It’s part of your annual financial hygiene.

You Might Owe Zakat If You...

You must pay Zakat if all of the following apply:

• You’re Muslim
• You’ve hit puberty (i.e. you’re an adult)
• You’ve had wealth above the nisab threshold for one full Hijri lunar year

Your wealth includes:

• Savings in your bank account (yes, even salary leftovers)
• Gold or silver (including jewelry)
• Stocks, crypto, and investments
• Profits from rental property or business
• Money you’ve lent out and expect to be paid back

What’s the Nisab?

The nisab is the minimum wealth you must have to owe Zakat. It’s based on:

• 87.48g of gold (~AED 23,000–25,000 depending on market), or
• 612.36g of silver (~AED 2,000–3,000)

FunFi uses the gold nisab for more accurate modern standards.

When Do You Pay Zakat?

You pay Zakat once every lunar year, on the same Hijri date you first became eligible.

Most people choose to pay during Ramadan — but any date works, as long as you stick to it annually.

Zakat Isn’t Charity. It’s Their Right.

Think of Zakat as money that was never truly yours to begin with. It belongs to:

• The poor and needy
• Those in debt
• Refugees and travelers
• Students and seekers of knowledge
• Orphans and widows

You’re just passing it on.

Not Sure If You Owe Zakat?

Don’t guess. We built a free, easy-to-use tool to help you find out in under 60 seconds.

• Add your savings, gold, crypto, investments
• Automatically compare to the current nisab
• Get your exact Zakat amount instantly
• Learn as you go — no stress, no confusion

👉 Use the FunFi Zakat Calculator Now for free — available on our website now and in the app this fall.

No signup. No spam. Just better money decisions.