How Islamic philanthropy reshapes humanitarian financing worldwide

Humanitarian financing is slowly shifting towards one of the most consequential, yet still under-examined roles of Islamic philanthropy, such as zakat and sadaqah, in addressing contemporary humanitarian crises. 

Regional Representative to the Gulf Cooperation Council (GCC) Countries at the United Nation (UN) Refugee Agency, Dr Khaled Khalifa said, the Islamic charity practiced across the Muslim world represents a renewable and predictable source of funding. 

Long embedded in social and ethical traditions, he said the funding dwarfs current humanitarian requirements, with conservative estimates suggesting that annual zakat resources could reach up to RM1.39 trillion ($350 billion) if fully paid.

Khaled said, the number surpasses the rough requirement for global humanitarian response of about RM198 billion ($50 billion) in a typical year, highlighting that capturing even a small fraction of this potential can transform lives and communities in crisis zones.

“Our experience at UNHCR, as the first UN agency to establish a dedicated Islamic philanthropy programme, has shown that faith-based giving can be aligned with humanitarian principles of neutrality, impartiality and accountability without diluting any of them. 

“Technological tools such as digital zakat platforms, including UNHCR’s zakat app that allows donors to calculate and channel their zakat and sadaqah directly to eligible beneficiaries, have helped bridge trust gaps, improve transparency and make faith-based giving more accessible to a global donor base.

Islamic philanthropy is increasingly recognised as a sustainable funding for humanitarian projects worldwide. (photo credit: UN Canada)

“Amid constrained public budgets and protracted crises, Islamic philanthropy offers a complement that broadens the base of humanitarian financing while reaffirming shared human values,” he said, as reported by The National. 

He cited the findings from UNHCR Islamic Philanthropy Annual Report 2025, which elaborates on how the model is utilised to spark real-world impact across war-ridden or conflictful countries.

The Senior Adviser to the High Commissioner for Refugees for Islamic Philanthropy at the UN Refugee Agency explained, zakat and sadaqah contributions supported more than one million refugees and internally displaced people across 25 countries in a single year.

The countries included are as diverse as Afghanistan, Jordan, Bangladesh, Yemen, Colombia, Brazil, Botswana and the Central African Republic. 

The contributions made, Khaled said, allowed assistance to reach communities often overlooked when funds fall short, while ensuring strict eligibility criteria and Sharia compliance, appealing to other parts of the UN system that have begun adopting similar approaches.

“This broader uptake suggests that Islamic philanthropy is an emerging pillar within humanitarian financing,” he said.

The aid stockpiles allow the organisation to receive and distribute aids globally more effectively, particularly during crises. (photo credit: Protocol Department Dubai)

Central to the shift, Khaled said the Gulf has invested in infrastructures that enable humanitarian action at scale– moving beyond its role as a major source of philanthropic capital – as carried out by the UAE who hosted UNHCR’s largest Global Stockpiles at Dubai Humanitarian.

The initiative, according to the expert, becomes a critical node in the rapid mobilisation and delivery of relief in the region and worldwide.

At the same time, Khaled explained the UNHCR’s Refugee Zakat Fund has proven to be effective and sustainable due to the values and structures that support it, as evident by the renewable nature of zakat that presents a recurring obligation, not a one-off contribution.

The practice ensures ethical and inclusive wealth redistribution to support human need broadly, without distinction of nationality, reinforced by governance mechanisms that prioritise transparency, eligibility and direct assistance.

“However, equally important is trust, because donors today increasingly demand assurance that their contributions reach those most in need, in ways that respect both humanitarian standards and religious principles. 

“Zakat institutional models meet these expectations as 100 percent of donations go directly into the hands of eligible beneficiaries guided by independent Sharia oversight and supported by several religious rulings. 

Refugees and internally displaced citizens are some of the most vulnerable communities susceptible to violence and danger, particularly during crises. (photo credit: UNHCR)

“This combination of accountability and faith-based governance has helped translate individual giving into a transparent, system-level response to displacement,” he said. 

For example, Khaled said more than 70,000 donors worldwide have entrusted UNHCR with their zakat since 2017.

Although, he emphasised that Islamic philanthropy is not a replacement for governmental responsibility or international solidarity, but a powerful complement that broadens the base of humanitarian financing while reaffirming shared human value amid constrained budgets.

“As the humanitarian system adapts to a more uncertain future, intentional and responsible integration of faith-based financing is essential. 

“The experience of recent years suggests that when belief-driven generosity is paired with institutional accountability, it can help chart a more resilient and inclusive path forward.

“This is important given that for millions displaced by conflict and crisis, innovation in humanitarian financing is a matter of survival,” he said.