Back to search

Is zakat due on the principal sum invested in a commercial project each year, and is it due on the compound profits after they are received?

1 min readAlso available in العربية

Zakat is obligatory on both the capital and its profit together, not just on the capital. The resolution of the Islamic Fiqh Academy stipulates the obligation of Zakat on investment account balances and their profits if the conditions for Zakat are met. However, the aforementioned transaction is invalid for several reasons, including the condition of obtaining a percentage of the profit in addition to the capital, such as stipulating a known amount, which scholars have unanimously agreed invalidates the Qirad (Mudarabah) contract. Furthermore, guaranteeing the capital is considered a reason for the invalidity of the transaction.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

Read the full answer on Ftawy