ISTANBUL: Malaysia has proposed reviving the International Zakat Organisation (IZO) to coordinate the collection and distribution of zakat funds globally, particularly to support poor Muslim countries and Muslim minority communities worldwide.
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the proposal to reactivate the IZO, established in 2008, was originally mooted by the late Saudi Arabian Islamic banking pioneer Sheikh Saleh Abdullah Kamel during the administration of Malaysia’s fifth Prime Minister, Tun Abdullah Ahmad Badawi.
He said the IZO could potentially be funded through contributions from wealthy Muslim countries, as well as by exploring mechanisms to channel unclaimed interest from oil-related “petrodollar” deposits held in international banks, which their owners refrain from claiming due to the prohibition of riba (interest).
“This is because there are countries that do not take interest earned from their bank savings or deposits as they consider it riba,” he told Malaysian media here at a press conference marking the conclusion of his four-day working visit to Türkiye, which ended today.
The petrodollar system refers to the use of the United States dollar (USD) as the primary currency for global oil transactions.
Ahmad Zahid, who is also Rural and Regional Development Minister, said the funds could then be distributed to the eight eligible asnaf (zakat recipient) groups in poor Muslim countries and nations with Muslim minority communities, helping to improve the socioeconomic status of Muslims worldwide.
He said the proposal was among the key matters discussed during a courtesy call by Developing Eight (D-8) Secretary-General Sohail Mahmood on Nov 6.
Recounting the organisation’s history, Ahmad Zahid said he had been entrusted with the role of IZO Board of Directors chairman when he was Minister in the Prime Minister’s Department in 2008.
He said Malaysia’s strategic initiative was then developed under the auspices of the Organisation of Islamic Cooperation (OIC), with an initial target of raising RM10 billion over five years through the advisory services of an international financial firm.
Apart from global zakat coordination, Ahmad Zahid said Malaysia had also held detailed discussions to strengthen strategic cooperation with Türkiye in the international halal industry.
He said Malaysia, with 52 years of experience in halal certification, aimed to expand its network and increase the reach of halal products in the rapidly growing global market.
“Türkiye has extensive halal product output, not only in the food and beverage sector but also in medicine, cosmetics and vaccines. With the global halal market estimated to be worth USD1.3 trillion by 2030, Malaysia must seize the opportunity to strengthen cooperation with Türkiye and other Muslim countries,” he said.
Ahmad Zahid’s four-day working visit from Nov 5 to 8 focused on strengthening Malaysia-Türkiye bilateral ties through diplomatic, trade, defence and education cooperation, as well as his participation in the TRT World Forum 2026 at the Istanbul Congress Centre (ICC).