Malaysia Proposes Reviving IZO To Help Muslims Worldwide

From Siti Nurhana Shafirah Mat Nazir

ISTANBUL, Nov 8 (Bernama) -- Malaysia has proposed reviving the International Zakat Organisation (IZO) to coordinate zakat collection and distribution worldwide, particularly to support poorer Muslim countries and Muslim minority communities.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the idea of reviving IZO, established in 2008, was first proposed by the late Sheikh Saleh Abdullah Kamel, a Saudi Arabian pioneer of Islamic banking, during the administration of Malaysia's fifth Prime Minister, the late Tun Abdullah Ahmad Badawi.

He said the organisation could be revived with contributions from wealthy Muslim countries, while also exploring ways to channel unclaimed interest from petrodollar deposits held in international banks.

"Some countries do not collect interest earned on their savings or bank deposits because they consider it riba (interest)," he told a press conference with Malaysian media here today at the end of his four-day working visit to Turkiye.

The petrodollar system refers to the use of the US dollar as the primary currency in global oil trading.

The Rural and Regional Development Minister said the funds could be distributed to the eight eligible categories of asnaf (zakat recipients) in poorer Muslim countries and countries with Muslim minority populations, helping to improve the socioeconomic well-being of Muslims worldwide.

He said the proposal was among the key issues discussed during a courtesy call by Developing Eight (D-8) Organisation for Economic Cooperation secretary-general Sohail Mahmood on Nov 6.

Recalling the organisation's history, Ahmad Zahid said he was entrusted with chairing IZO's board of directors in 2008 while serving as Minister in the Prime Minister's Department.

At the time, he said, the Malaysian initiative was developed under the auspices of the Organisation of Islamic Cooperation (OIC), with an initial target of raising RM10 billion over five years with the advisory support of an international financial firm.

On another matter, he said Malaysia also held extensive discussions with Turkiye on strengthening strategic cooperation in the global halal industry.

He said Malaysia, drawing on 52 years of experience in halal certification, aimed to expand its international networks and increase the market reach of halal products amid growing global demand.

"Turkiye produces a wide range of halal products, covering not only food and beverages but also pharmaceuticals, cosmetics and vaccines. With the global halal market projected to reach US$1.3 trillion by 2030, Malaysia must seize the opportunity to strengthen cooperation with Turkiye and other Muslim countries," he said.

Ahmad Zahid's working visit to Turkiye from Nov 5 focused on strengthening bilateral ties in diplomacy, trade, defence and education.

He also attended the TRT World Forum 2026 at the Istanbul Congress Centre (ICC).

-- BERNAMA