How is the Zakat calculated for a Saudi stock portfolio that is used for savings and wealth growth, with shares being sold when needed, and some being exchanged for others with the aim of achieving the best outcome?

Zakat on shares has two situations:

1. Shares bought with the intention of trading: Zakat is due on their market value every hawl (lunar year). 2. Shares held to benefit from their returns: Commercial and industrial companies: Zakat is due on the value of the shares after deducting equipment, machinery, furniture, and buildings. Agricultural companies: Zakat is due on the portion of crops and fruits represented by the share (if they are among the zakatable types and reach the nisab), and on the cash in the company's treasury. Service companies (such as hotels and transportation companies): Zakat is due only on their income and profit.

If the state accurately collects zakat from companies, then you are not obligated to pay zakat. However, if it does not collect it, then you must count the shares. If they are for trade, then pay zakat on their market value at a rate of one-quarter of one-tenth (2.5%). If they are for istiflal (investment for income), then there is no zakat on the fixed assets themselves, but zakat is due on the profits and cash derived from them.

What is meant by the value of shares here is their market value, and one-quarter of one-tenth (2.5%) of this value and of any profit, if present, is to be paid as zakat.