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How is zakat paid on shares purchased in an Islamic bank with the intention of benefiting from their annual profits and the possibility of selling part of them later?

1 min readAlso available in العربية

Zakat is obligatory on shares if they are trade goods. They are to be valued, and one-quarter of one-tenth (2.5%) of their value, along with the profit, is due as Zakat upon the completion of the hawl (one lunar year), regardless of whether they were intended for trade or not. However, if the shares are fixed assets, there is no Zakat on them. Instead, Zakat is due on the profits generated from them if these profits reach the nisab (minimum threshold) and a hawl passes over them. Zakat is not obligatory on shares unless there is a firm intention of trading with them.

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

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