Muslim Alms and Humanitarian Financing: An Analysis of the UNHCR’s Refugee Zakat Fund

The UNHCR launched the Refugee Zakat Fund in 2019 to tap into the significant potential of Islamic social finance, specifically zakat, to address rising humanitarian needs. While the fund assisted 1.1 million people across 20 countries by 2023 and has gained endorsements from 17 Islamic institutions, it faces scrutiny regarding Sharia compliance and the legitimacy of centralized zakat collection. To maintain trust, UNHCR has implemented specific measures such as using interest-free accounts and waiving indirect support costs. The brief highlights a broader trend of UN agencies, including UNICEF and UNRWA, integrating Islamic social finance to diversify funding streams.

• There is a vast, largely untapped potential for humanitarian financing through zakat; the Islamic Development Bank (IsDB) estimated in 2021 that annual worldwide zakat contributions are approximately US$300 billion.
• The UNHCR's Refugee Zakat Fund, launched in 2019, provided assistance to 1.1 million eligible refugees and internally displaced persons (IDPs) across 20 countries by 2023, with the majority of beneficiaries located in the Middle East and Asia.
• In 2023, UNHCR received just over US$45 million in contributions, an increase from US$38 million in 2022. These funds consisted of 45% zakat and 55% sadaqa, with additional smaller amounts for sadaqa jariyah and zakat al-fitr.
• To establish legitimacy and Sharia compliance, UNHCR adopted several operational changes: it uses a dedicated interest-free bank account in Geneva, waives requirements for indirect support costs to ensure 100% of zakat reaches recipients, and removes conditions for funding that would violate the spirit of zakat.
• The fund's legitimacy is supported by endorsements from 17 institutions as of 2024, including Al-Azhar’s Islamic Research Academy, the Muslim World League, and the OIC’s International Islamic Fiqh Academy.
• The UNHCR has faced criticism regarding the centralization of zakat collection. In 2022, the World Zakat and Waqf Forum (WZWF) called for an immediate stop to UNHCR's collection, arguing for local distribution. In response, UNHCR partnered with local zakat agencies and Islamic charities in Indonesia.
• Beyond the Zakat Fund, UNHCR and the IsDB established the Global Islamic Fund for Refugees (GIFR) in 2022, which was activated in March 2023 with US$100 million in start-up capital to support displaced people and host communities through Waqf and non-Waqf funds.
• Other UN agencies are also adopting Islamic social finance: UNRWA collects zakat for Palestinian refugees, and UNICEF has partnered with the IsDB to create The Global Muslim Philanthropy Fund for Children.

APA

Strand, A., & Borchgrevink, K. (2024). Muslim Alms and Humanitarian Financing: An Analysis of the UNHCR’s Refugee Zakat Fund. Peace Research Institute Oslo. https://cdn.cloud.prio.org/files/f9e37334-5f99-47e0-aca8-38871f56cdac/PRIO Policy Brief 12-2024.pdf?inline=true

Chicago

Strand, Arne, and Kaja Borchgrevink. Muslim Alms and Humanitarian Financing: An Analysis of the UNHCR’s Refugee Zakat Fund. Peace Research Institute Oslo, 2024. https://cdn.cloud.prio.org/files/f9e37334-5f99-47e0-aca8-38871f56cdac/PRIO Policy Brief 12-2024.pdf?inline=true.

Wikipedia

{{cite report |last1=Strand |first1=Arne |last2=Borchgrevink |first2=Kaja |title=Muslim Alms and Humanitarian Financing: An Analysis of the UNHCR’s Refugee Zakat Fund |publisher=Peace Research Institute Oslo |date=2024 |url=https://cdn.cloud.prio.org/files/f9e37334-5f99-47e0-aca8-38871f56cdac/PRIO Policy Brief 12-2024.pdf?inline=true |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{strand2024muslim, author = {Strand, Arne and Borchgrevink, Kaja}, title = {{Muslim Alms and Humanitarian Financing: An Analysis of the UNHCR’s Refugee Zakat Fund}}, institution = {Peace Research Institute Oslo}, year = {2024}, url = {https://cdn.cloud.prio.org/files/f9e37334-5f99-47e0-aca8-38871f56cdac/PRIO Policy Brief 12-2024.pdf?inline=true}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }