Zakat on Investments: What You Need to Know

Zakat is due on wealth that has been held for a full lunar year and exceeds the nisab threshold (roughly the value of 87.48g of gold). For investments, the calculation depends on your intention and the type of asset.

If you hold shares with the intention of trading them for profit, Zakat is generally due on the full market value of your holding at 2.5% per year — the same rate as cash.

If you hold shares as a long-term investor collecting dividends, many scholars hold that Zakat is due only on the company's zakatable assets proportional to your shareholding.

Sukuk are generally treated like cash for Zakat purposes — 2.5% of the Sukuk's market value is the common approach.

Your wallet balance and any uninvested cash are treated exactly like cash savings: 2.5% per year once the nisab threshold and one-year holding period are met.

This article is educational, not a fatwa — Zakat calculation can get genuinely complex, so we always recommend confirming with a qualified Islamic scholar for your personal situation.