Is Zakat obligatory on shares in real estate companies?

There are two scenarios for Zakat on shares in real estate companies:

1. If the company purchased land for construction and exploitation of the buildings through leasing, then there is no Zakat on the shares themselves. Rather, Zakat is only due on their profits if they reach the nisab and a hawl (one lunar year) has passed. Zakat must also be paid annually on the cash amounts and bank balances that correspond to the share.

2. If the company purchased real estate (land and buildings) with the intention of trading, then these shares are considered trade goods, and Zakat is due on them and their profits annually according to their value. Sheikh Ibn 'Uthaymeen and the Permanent Committee for Ifta' have issued fatwas stating the obligation of paying Zakat on these investments annually according to their market value, whether they yield a profit or a loss. If they are not sold, their Zakat for all previous years must be paid upon sale.