Bayt al-Mal

The establishment of the first Islamic state in Medina is one of the seminal events in Islamic history. This entry examines the historical roots of Bayt al-Mal, the early state treasury, its key revenue streams, and how its goals evolved. Among the revenue sources during the time of the Prophet of Islam were zakat, tribute, Mubashir, jizya, and spoils of war. Together, these funds were applied to eliminating poverty and promoting social welfare. During Caliph Umar’s reign, the expansion of the state’s borders institutionalized the Bayt al-Mal. As the state’s wealth grew, challenges arose in managing funds and maintaining an official record-keeping system. The main sources of revenue were taxation forms such as zakat, ushr, khara’aj, jizya, and others. Over time, additional sources such as import duties and revenues from state-owned property supplemented these. The institution of Bayt al-Mal still exists in some Muslim countries today.