Riyadh Hosts 3rd Zakat, Tax & Customs Conference in December, 2024

The Third Zakat, Tax & Customs Conference, scheduled for December 4-5, 2024, in Riyadh, Saudi Arabia, is set to be a landmark event for policymakers, industry leaders, and global stakeholders. Held under the auspices of the Minister of Finance and Chairman of ZATCA, Mohammed bin Abdullah Al-Jadaan, the conference will explore innovative strategies to shape the future of taxation, zakat management, and customs practices. With a focus on the latest technological advancements, economic trends, and regulatory changes, this year’s theme, “Shaping Tomorrow for a Sustainable Ecosystem,” underscores the urgency of aligning economic policies with sustainable growth.

The event marks a crucial step toward addressing modern challenges in economic governance while ensuring that zakat, a religious obligation for Muslims, is utilized effectively for social welfare. The conference will discuss how to build a sustainable economic ecosystem by incorporating digital tools and modern methodologies in the administration of zakat, tax, and customs. With Saudi Vision 2030 as a guiding framework, the conference aims to boost economic diversification and promote global partnerships.

Zakat Tax & Customs Conference

Since its inception, the Zakat, Tax & Customs Conference has grown in prominence, attracting participants from all corners of the globe. The first edition, launched in 2022, aimed to introduce new perspectives on the integration of zakat with modern taxation and customs practices. It highlighted the challenges of aligning traditional zakat management with contemporary fiscal policies and presented solutions for improving regulatory frameworks.

The second conference in 2023 built upon this foundation by introducing cutting-edge technology discussions, especially around blockchain for zakat distribution and AI in tax audits. The overwhelming success of these discussions set the stage for the upcoming 2024 conference, which aims to delve even deeper into technological integration and policy development.

Key Objectives of the 2024 Conference

The conference will address multiple strategic objectives to foster a sustainable and globally competitive economic environment. Here’s a closer look at the primary goals for this year:

1. Enhancing Saudi Arabia’s Global Standing: By creating a platform for international dialogue, the event seeks to elevate Saudi Arabia’s role in the global economic landscape. The discussions will help position the Kingdom as a leader in adopting modern practices in zakat, tax, and customs, making it a model for other countries aiming for sustainable economic policies.

2. Boosting International Trade: The event aims to support initiatives that ease cross-border trade, which is crucial in a globalized economy. Topics will cover how digitized customs procedures and tax incentives can make the Kingdom a more attractive hub for international business.

3. Supporting Economic Diversification: In line with Saudi Vision 2030, the conference will highlight policies that encourage diversification beyond oil revenues. Sessions will discuss tax reforms, zakat policies, and investment-friendly regulations that promote the growth of sectors like tourism, technology, and renewable energy.

4. Integrating Technology for Transparency and Efficiency: Leveraging AI, blockchain, and other digital tools will be central to achieving sustainable practices. The conference will feature case studies from countries that have successfully implemented digital solutions in tax collection, customs processes, and zakat distribution, setting examples for Saudi Arabia and other nations.

Digital Transformation

The drive towards digital transformation is reshaping the landscape of economic management worldwide. For zakat, tax, and customs authorities, the use of technology is no longer optional; it is a necessity for efficiency and compliance. The global push for digitization has seen rapid growth in the deployment of AI tools, with the market for AI-powered solutions in the public sector projected to reach $11.6 billion by 2024. This shift is critical for streamlining operations, improving service delivery, and ensuring regulatory adherence.

AI in Customs Administration

AI can revolutionize tax compliance by automating tasks such as auditing, fraud detection, and data analysis. Machine learning algorithms can quickly identify anomalies in tax filings, flagging cases for review and reducing the manual burden on tax authorities. For customs, AI-powered scanners can enhance border security by identifying illegal shipments or contraband, expediting legitimate trade, and minimizing human error.

A case study from Singapore demonstrates how AI-driven customs procedures have led to a 25% reduction in processing times for cross-border shipments. Implementing similar strategies in Saudi Arabia could significantly boost trade efficiency and help the Kingdom achieve its economic diversification goals.

Blockchain for Zakat Distribution

Blockchain technology offers a transparent and secure method for zakat collection and distribution, ensuring that funds reach their intended beneficiaries. By using decentralized ledgers, zakat administrators can track donations in real-time, providing donors with a clear view of how their contributions are utilized. Countries like Malaysia have already adopted blockchain platforms to facilitate zakat payments, resulting in a 30% increase in annual collections. The conference will explore how Saudi Arabia and other nations can adopt these practices to modernize their zakat systems.

Aligning Zakat with Modern Policies

Zakat, one of Islam’s five pillars, is an obligatory act of charity aimed at supporting the less fortunate. Traditionally, zakat has been distributed through local channels such as mosques and charitable organizations. However, in today’s global economy, there is a growing need to align the Zakat administration with broader economic policies, including taxation and social welfare.

The conference will discuss the benefits of integrating zakat with government social programs to maximize impact. For instance, combining zakat funds with state welfare programs could help target poverty reduction more effectively. Attendees will hear about innovative models from countries like Pakistan and Indonesia, where zakat is used to fund education, healthcare, and disaster relief.

Saudi Vision 2030

Saudi Vision 2030 outlines a bold plan for transforming the Kingdom into a global economic powerhouse. One of the key pillars of this vision is to build a thriving economy that offers opportunities for all. To achieve this, significant reforms in zakat, tax, and customs are necessary to create a business-friendly environment.

Regulatory Improvements

In recent years, Saudi Arabia has made substantial regulatory changes to attract foreign investments and boost the non-oil sectors. The World Bank’s “Doing Business” report ranked the Kingdom among the top 10 global reformers in 2023, citing advancements in taxation and customs as major contributing factors. These reforms include streamlining customs procedures, reducing the number of documents required for import and export, and introducing e-payment systems for tax filing.

The Zakat, Tax & Customs Conference will build on these reforms, exploring additional steps that can be taken to further ease the regulatory environment. Sessions will discuss new tax incentives, regulatory sandboxes for fintech, and digital tools to simplify compliance.

The Role of Women

One of the highlights of the upcoming conference is a special panel dedicated to the role of women in economic diversification. With Saudi Arabia striving to increase female workforce participation, the panel will address how inclusive policies in zakat, tax, and customs can empower women to contribute to the economy. Discussions will include tax incentives for women-owned businesses, training programs for female entrepreneurs, and how zakat can support initiatives aimed at reducing gender disparities.

Supporting Women-Owned Businesses

Leveraging zakat to support women’s entrepreneurship aligns with broader social welfare goals while boosting economic growth. Research shows that countries with high female business ownership see more robust economic performance and resilience. At the conference, experts will present case studies from Indonesia and Turkey, where zakat has been effectively used to fund women’s micro-businesses, demonstrating the potential for similar initiatives in Saudi Arabia.

Best Practices in Customs Operations

The customs landscape is continually evolving, with governments worldwide seeking to strike a balance between trade facilitation and security. The Third Zakat, Tax & Customs Conference will offer insights into international best practices, with speakers sharing experiences from countries known for their advanced customs systems, such as the Netherlands and Singapore.

Related: Indonesian Vice President Amin Inaugurates Zakat National Conference

Cross-Border Trade: Lessons from the Netherlands

The Netherlands has one of the most efficient customs administrations in Europe, using advanced technology and data analytics to streamline trade. The country’s “Single Window” system allows for the submission of all customs documents through a single online platform, reducing clearance times and lowering costs for businesses. At the conference, Saudi customs officials will discuss how similar strategies could be applied to enhance trade efficiency in the region.

Case Study: Singapore’s Smart Customs

Singapore’s Smart Customs initiative incorporates AI, big data, and the Internet of Things (IoT) to monitor cargo movements in real-time. This approach has reduced inspection times by 30% and minimized trade disruptions. The conference will explore how these innovative practices can be adapted to fit Saudi Arabia’s customs framework, supporting the Kingdom’s goals for economic sustainability and competitiveness.

Ensuring a Green Economic Future

The 2024 Zakat, Tax & Customs Conference will also address the role of sustainable practices in economic policy. As environmental concerns grow, businesses and governments are under pressure to adopt greener practices. The conference will include sessions on how tax incentives can promote environmental sustainability and how zakat can fund eco-friendly projects.

Green Taxation

Tax policies play a vital role in promoting environmental sustainability. Green taxes—levies on carbon emissions, plastic usage, and other pollutants—can incentivize companies to adopt sustainable practices. Saudi Arabia is already exploring the potential of green taxation as part of its broader sustainability agenda. Experts at the conference will discuss how the Kingdom can implement these taxes effectively without hindering economic growth.

Funding Eco-Friendly Projects

Zakat funds can be directed towards projects that not only help the needy but also contribute to environmental protection. For example, zakat could be used to support clean water initiatives, renewable energy projects, and sustainable farming practices. The conference will present success stories from other countries where zakat has been used to fund eco-friendly programs, providing a blueprint for Saudi Arabia.

As the global economy continues to evolve, so too must the systems governing zakat, tax, and customs. The Third Zakat, Tax & Customs Conference will lay the groundwork for future innovations by fostering discussions that are not only theoretical but also practical and applicable. By focusing on sustainability, technological advancement, and inclusive policies, the conference aims to shape a future where zakat, tax, and customs practices contribute to a balanced and thriving global economy.

For attendees, the conference offers a rare opportunity to gain insights from world-renowned experts, network with industry leaders, and engage in high-level discussions that could influence future policies. As Saudi Arabia strives to become a global economic leader, the outcomes of this event could very well set the tone for the next decade of economic growth and sustainability.