Is zakat obligatory on shares designated for investment if one intends to sell them in order to purchase real estate, or is the company's zakat sufficient?

Stocks are of two types: the first is that which is purchased with the intention of trading, and zakat is obligatory on its market value upon the completion of a hawl (one lunar year). The second is that which is intended for retention and benefiting from its returns, and its zakat has details depending on the type of shares:

1. Shares of commercial and industrial companies: Zakat is obligatory on their value, minus equipment, machinery, furniture, and buildings. 2. Shares of real estate companies: This is detailed according to the nature of the company's work, whether selling or renting. 3. Agricultural companies: Zakat is obligatory on what the share represents in terms of crops or fruits that have reached the nisab (300 sa's), and also on the money in the company's treasury. 4. Service companies (hotels and transport): Zakat is obligatory only on their returns and profits.

If the company pays zakat, then there is nothing on the shareholder; otherwise, the shareholder must pay it.

As for someone who bought shares with the intention of retaining them and then intended to sell them, zakat on trade goods is not obligatory on them according to the majority of scholars, because they are not considered trade goods unless intended for trade at the time of acquisition.

Sheikh Ibn 'Uthaymin, may Allah have mercy on him, preferred the view that what was acquired and then intended for sale due to need or no longer needing it, does not become trade goods simply by that intention.

In summary, a mere intention to sell does not make shares trade goods on which zakat is obligatory.