Houthis Exploit Zakat to Squeeze Merchants and Fund War Efforts

Wednesday 3 Mar 2025 |14 hours ago
Houthis Exploit Zakat to Squeeze Merchants and Fund War Efforts

Barran Press

As Ramadan approaches, the Houthi group, which controls significant portions of Yemen, is intensifying its collection of Zakat (Islamic almsgiving) from merchants in areas under its control. The group is using various means, including both personnel and media, to conduct a widespread campaign to gather substantial funds to support its financial resources and military activities.

Since taking control of Sanaa in September 2014, the Houthi group has been accused of leveraging religious obligations, including Zakat, as a source of revenue. Over the past five years, collection efforts have expanded, with allegations of coercive tactics such as raids and forced entry into businesses, particularly during Ramadan, a time traditionally associated with charitable giving.

Numerous merchants, particularly small business owners, have reported being pressured to pay significant sums, sometimes exceeding their available capital. These levies are said to increase annually, despite the challenging economic conditions and humanitarian crisis affecting the local market.


Threats and Arbitrary Arrests

Riyad Al-Hamammi, a grocery store owner, told Barran Press that the Houthi Zakat Authority demanded 70,000 riyals, despite his daily earnings of 20,000 to 30,000 riyals and total capital of 400,000 riyals. He alleges that his attempts to negotiate were met with threats of imprisonment or additional financial penalties. "They insist on calling it Zakat, yet they impose it through coercion, completely disregarding Islamic teachings," he stated.

Ayman Al-Shar'abi, another grocery store owner, reported multiple instances of arbitrary detention and forced payments exceeding his capital. He claimed he requested a reduction due to declining business, but Houthi authorities escalated demands and sent armed personnel to his store during Ramadan. "They did not release me until I paid the full amount," Al-Shar'abi said. He added that the group's practices violate Islamic law, which he stated dictates Zakat on trade should be 2.5% of circulating capital, while the Houthis impose up to 10%.


Irregularities in Houthi Zakat Collection Process

Human rights organizations and journalists have reported irregularities in the Houthi group's Zakat collection practices. These reports suggest that the group uses its control over security and judicial systems to exert pressure on merchants, employing legal justifications for what some describe as extortion.

A United Nations Panel of Experts on Yemen estimated Houthi revenues from Zakat collections at approximately 25 billion Yemeni riyals annually. In June 2020, the group implemented an additional 20% levy on sectors including minerals, oil, water, and fishing.

Accounts of Coercive Tactics
Merchants have described field campaigns conducted by the Houthi group during Ramadan, which they allege involve raids on businesses and the detention of those unable to meet payment demands.

A supermarket owner in Sanaa, identified as (S.B.) for security reasons, highlighted that armed individuals entered his store, disrupting customers and demanding one million riyals, purportedly for Zakat. "They ignore financial realities and impose their demands at gunpoint, suffocating businesses and forcing merchants into financial ruin," he stated.

Reports indicate that some small business owners have been forced to close due to financial pressures. Awad Al-Zuraiki, who started a juice-selling business with borrowed funds, described his business collapsing under Houthi demands. "I tried explaining my situation, even showing financial records, but they showed no mercy. I was subjected to humiliation, detention, and ultimately, financial ruin," he said.

Religious Justifications for Organized Extortion

Dr. Aref Bahebah, a professor of jurisprudence at the University of Saba, criticized the Houthi group's Zakat collection practices, describing them as extortion disguised as a religious duty. "Zakat is a divine ordinance meant to support the needy, not a tool for oppression," he told Barran Press. "Islamic law clearly defines Zakat amounts and conditions. It cannot be arbitrarily imposed or extracted through intimidation."
He also referenced Yemeni Law No. 2 of 1999, which outlines Zakat collection protocols and prohibits coercion or unauthorized levies. He stated that any violation constitutes a legal offense.

Zakat Being Used for War Financing

Economic analyst Wahid Al-Fudaie argued that the Houthi group has transformed Zakat into a form of taxation to finance its military operations and strengthen its control over Yemen's economy. "This is not about religious duty—it's economic subjugation. Merchants are being drained of resources while the group uses these funds to sustain its war machine," Al-Fudaie stated.
He compared the Houthi taxation methods to those of other extremist groups, such as ISIS and Hezbollah, which he alleges impose financial levies on civilians to fund armed conflict rather than social welfare.

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