1. Zakat on Secured Currency 2. The Lands which the Islamic State Lays its Hands on

প্রশ্ন · Question

Assalamu alaikum wa rahmatullah wa barakatuhu my dear respected
brother. I became confused on two matters for which I would like you
to please clarify them, may Allah ﷻ reward you with all good and help
you.
The first matter is related to the Zakat on secured paper currency. It is
mentioned in the book, Funds in the Khilafah "Caliphate" State that the
representative paper currency is treated the same as gold or silver
because it represents either gold or silver. This is clear. It is also
mentioned that Zakat on compulsory paper currency is obligatory
because it is linked to the currency ‘Illah, and its value is evaluated
with gold or silver depending on its purchase value in the market and
its Zakat is calculated after the Nisab and the passing of one year. This
is also clear. As for the "reliable paper currency" which has a specific
cover of gold and silver according to a specific proportion which is less
than the nominal value of currency as determined by the State or by
the entity authorized to do so by the State. For example, assuming that
one Jordanian Dinar was issued by the State to equal to one gold Dinar
but it adhered to covering it by 50%, i.e. by one -half of a Gold Dinar, so
the Jordanian Dinar was divided to half, the first half is considered
representative paper currency, and the second half is considered
compulsory paper currency.
When the book explored the Zakat of this money, it considered the
representative half only and did not address the other compulsory
half, although it has a market value and has fulfilled the currency
characteristic, it was still not considered. Please clarify this.
The second matter is related to lands and properties (individual, public
and state). Two points were cited regarding the lands that belong to
the Islamic State. The first: there is no fourth type of properties.

Secondly: that all of these lands belong to one of the three properties.
It is mentioned in the book Funds in the Khilafah "Caliphate" State: 1 -
Types of State Property: deserts, mountains, sea coasts (beaches) and
uncultivated (barren) land not owned by individuals, which the State
has laid its hands on legitimately.
And the phrase "the state laid its hands on, if the state lays its hands
on..." was mentioned in its explanation many times, which caused for
me some confusion, it is not talking about the lands of individual
property, nor of public property, it is also talking about lands that
belong to the State yet still mentions "which the state laid its hands on
legitimately", causing me to understand that as though there are lands
within the State that are not a property of anyone. Please explain this.
May Allah ﷻ reward you with Khayr." End.

উত্তর · Answer

Wa Alaikum Assalam Wa Rahmatullah Wa Barakauhu,
Your question is twofold:
Answer to the first part of the question:
The reliable paper currency (Watheeqa) is representative paper, i.e. it
can be substituted for gold at any time, but it is substituted with a
portion of the value that is written on it, and this is a value that is
declared and known to all, thus it is handled on this basis, and when
using both kinds of representative paper currency, compulsory paper
currency is not used. To clarify this matter, currency dealing occurs
either with actual gold, or with representative paper, or with the
compulsory paper:
The Zakat on actual gold currency is clear...
As for dealing with representative paper currency, whether it is
exchanged upon request with gold at the specified value that is written

on it or whether it is exchanged with gold with a portion of what is
written on it, as known and declared to the people, then it is like
dealing with gold because it is a substitute for it. And it cannot be said
that the reliable paper currency that is exchanged with gold with only a
portion of what is written on it (of value), it cannot be said that the
rest of this value would be considered as compulsory paper currency,
because:
The compulsory paper currency cannot be exchanged with gold or
silver, it only takes the value of gold or silver by the law of the State
depending on the strength of its economy, without this, there is no
value to this type of currency, and there is no law that gives a value on
the remainder of the currency, therefore there is no value for it...
Hence, upon using both divisions of the representative paper, then the
compulsory paper will not be used...
Also, the State's writing on the paper does not affect the value of the
paper except with the value of exchanging it with gold, which is known
to the people with the reliable paper currency...
Therefore, the reliable paper currency is a representative paper that
takes its value from the portion of exchanging it with gold, thus its
Zakat is done according to the gold value it is exchanged with.
As for dealing with the compulsory paper currency, it has no real value,
and it is not exchanged for anything of gold and silver, it has a
statutory value according to the law issued by the State in accordance
with its economic strength. And Zakat for it is obligatory as per the
‘Illah of currency, and not because it is gold or silver, that is why it is
evaluated with gold or silver and Zakat is obliged in it when it reaches
the Nisab over which a year passes in accordance with its evaluation
with gold or silver.
Answer to the second part of the question:

There are two reasons for mentioning "The State legitimately put its
hands on it" in the texts which you referred to from the book, Funds in
the Khilafah "Caliphate" State:
First: The State could lay its hands on lands in an illegitimate way like
abducting the lands of people, in this case, the State does not
legitimately own these lands even if they were in reality at its disposal
and in its possession, because Hukm of abduction in Islam is applied if
the State abducts money, that the rule of ownership stays with the
owner, so if the state illegitimately lays its hands on a land, then it has
no legitimate right to either sell it, lease it, or cultivate it...
Second: Even if the barren land was under the State's authority, it is
permissible for people to own it, and they do not need the permission
of the Imaam to own it by Ihyaa' (revival) or Tahjeer (private
ownership)... when these lands become under the ownership of the
State then it is impermissible for anyone to own them without the
State's permission, and the State can thus dispose of it by selling,
leasing and cultivating... according to what it sees fit from a Shari'
perspective... this was all outlined in the book Funds in the Khilafah
"Caliphate" State , page 102 from the Arabic book, and the following
was mentioned in this regards:
"It is apparent from the Hadith that Tahjeer (closing the land as private
property) is the same as revival, is done in the dead land, and not
anything else...
This differentiation between barren land and cultivated land, is
evidence that the Messenger ﷺ gave permission to the people to own
a barren land through cultivating it and closing it off as private
property, thus it became permissible, and therefore it does not need
the permission of the Khaleefah to cultivate it or closing it off as
private property; it is what the Khaleefah lays his hand on, and became
known as lands of the State. An evidence for this is when Bilal Al-Muzni
asked the Messenger of Allah ﷺ to allocate a land for him, and he did

not become its owner until the Messenger ﷺ allocated it for him, and
if it were to be owned by cultivation of closing it off as private
property, he would have surrounded it with a sign indicating his
ownership of it, and he would have owned it without seeking
permission to allocate it for him." End.
Therefore, the barren land is permissible for the use of people except
that which the State laid its hands on, and the rest of the barren land
remains permissible for people, i.e. even if the barren land is under the
authority of the State, but in terms of ownership, it is permissible for
the people as shown by the Shariah.
Your brother
Abu Yasin