Is zakat obligatory on the value of a company's shares or its profits, or both, given that there is a condition prohibiting the sale of shares or the redemption of their value except after the termination of service with the company?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
is obligatory on shares owned by an individual with the intention of trading, similar to how Zakat is obligatory on trade goods. Their market value, along with their profit, is subject to Zakat at a rate of one-quarter of one-tenth upon the completion of a hawl (one lunar year). The company's restriction on selling shares for a certain period does not affect the obligation of Zakat. However, if the shares were purchased with the intention of benefiting from their dividends, and they represent fixed assets, then their returns are subject to Zakat if they reach the (minimum threshold) and a hawl has passed over them.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/57409
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 57409
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy