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Glossary of Financial Terms: Z

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Zahiri

A school of thought in Islamic jurisprudence of Sunni branch of Islam, the more well-known being HanafiHanbliMaliki and Shafi’i. In Shia branch of Islam the well-know school is the Jafri school.

Zakah

See Zakat.

Zakat

Lit: blessing, purification, increase or cultivation of good deeds. An obligatory contribution or tax which is prescribed by Islam on all Muslim persons having wealth above an exemption limit at a rate fixed by the Shari’ah.  Zakat is the third pillar of Islam. According to the Islamic belief Zakat purifies wealth and souls.  The objective is to take away a part of the wealth of the well-to-do and pay it to the Islamic state in the absence of which distribute it among the poor and needy.  It is levied on cash, cattle, agricultural produce, valuable assets, capital invested in industry or business or any other forms that could be termed as wealth.  The distribution of Zakat fund has been laid down in The Qur’an “Alms are for the poor and needy, and those employed to administer the (funds), for those whose hearts have been (recently) reconciled (to Truth); for those in bondage and in debt; in the cause of Allah; and for the wayfarer: (thus is it) ordained by Allah…” (9:60). Also known as Zakah.

Zakat al Maal

An annual levy on the wealth of a Muslim (above a certain level). The rate paid, differs according to the type of property owned. This tax is earmarked for amongst others for the poor and needy.

Zakat al-Fitr

Payable by every Muslim able to pay, at the end of Ramadan (the month of fasting). This is also called Zakat al-Nafs (Poll Tax).

Zulm

Injustice, oppression, exploitation, encroaching upon the rights of anyone or usurping other’s rights; not giving proper recompense in an exchange by way of any illegal act or coercion.