Bait-ul-Maal

The Bait ul-mal or public treasury was established during the reign of Umar al- Khattab, the second rightly-guided Caliph. It originated during the Holy Prophet Muhammad s.a.w. time but not as an institution. Its main function is to administer wealth contributed and acquired by Muslims through various sources.

The Establishment of the Bayt al-Mal in Islamic History

The bayt al-mal is defined literally as the national treasury . It is where the wealth distribution and accumulation are administered and recorded. Among the properties that are acquired and administered by the institution are jizyah, al-kharaj, zakat, al-ushr, luqatah, estate of the deceased and diat. All these are placed in the bayt al-mal and must be used for the welfare of the society at large and in accordance with the Shariah principles.

The existence of bayt al-mal in Islam can be traced back to the time of Holy Prophet Muhammad s.a.w. It was initially for the purpose to administer the wealth of the state which was acquired through war. Islam and Muslims life were concentrated in Mecca and Madinah. Its existence was hence not quite noticeable due to the life which was not quite complex at that time. The acquired property including zakat collection was immediately distributed without any delay.

The similar situation occurred during the first Caliphate. There was no rapid expansion of the Muslim territories. The Caliph focused more on the stability of the government after the Wissaal of Prophet Muhammad s.a.w. It was reported that all the acquired wealth was gathered in the Prophet’s Mosque and subsequently distributed to the recipients within three days .

It was during the second Caliph, Umar al-Khattab that the bayt al-mal was properly established. It was reported that the suggestion of setting it up was raised by a person who was concerned with the speech of `Umar regarding the wealth acquired by Abu Hurayrah from Bahrain amounting to 500,000 dirhams. He suggested `Umar to set up a diwan as practiced by non-Arabs. It is also narrated that it was by the suggestion of al-Waleed ibn Hisham who had experience of living in Syria. He proposed to `Umar to set up diwans following the practice of the rulers in Syria.

Acting on the suggestion, the Caliph had then appointed Aqeel ibn Abi Talib, Makhramah ibn Nawfil and Jubayr ibn Mut`im to start setting up the bayt al-maal. Unlike the first Caliph who worked very hard on establishing an unwavering and firm government, and faced threats from the internally political dissatisfactions, Umar had dedicated more on the expansion of Muslim territories. For that reason, there was a need to establish a proper bayt al-mal because financial collections especially from wars had magnificently increased. Caliph Umar had set up a good foundation of bayt al-mal for the administration of public properties. From thereon, its establishment had undergone tremendous progress throughout the Islamic history.

During the reign of `Umar Abd Aziz, an Umayyah Caliph, the collection from the kharaj had increased splendidly. This was due to the policy of expanding territories and his trustworthiness with respect to wealth administered by the bayt al-mal. It was during the reign of Caliph Harun al-Rashid, an Abbasid Caliph that reportedly wealth accumulated in the bayt almal reached the amount of 530,512,000 million dirham and the figure increased up to 900,000,000 million dirham at the time of his demise. This was due to the efficient and effective administration of the Islamic government at that time.

The Din E Mohammadi Bait ul maal provides monthly foodstuffs to needy families in our community. It is meant to respond to emergencies with food, medicine and shelter, sustain families with financial aid, empower youth to rise above poverty and improve their lives.