Q: I have an account at Al Barakah Investment and Development (one of Dallah Al Barakah Group companies). This company deals in Islamic investments (Mudarabah (speculation), lease, Murabahah (sale with an agreed profit margin), etc.), whereby it collects money and invests it in business, real estate, industrial or agricultural projects within the Kingdom of Saudi Arabia or in Muslim countries, in order to serve Islam and Muslims. We receive annual profits in return. Should I pay the Zakah (obligatory charity) on my wealth annually on the capital I paid to this company, or on the profits I receive annually? What is the rate of Zakah that I have to pay? A: With regard to the Mudarabah and Murabahah shares, you are to pay Zakah on both the capital and the profits when one Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) has passed on the capital. With regard to the shares which are held in agricultural, real estate and industrial companies, Zakah is due on (Part No. 8; Page No. 168

A: With regard to the Mudarabah and Murabahah shares, you are to pay Zakah on both the capital and the profits when one Hawl (one lunar year calculated from the time a property reaches the minimum amount upon which Zakah is due) has passed on the capital. With regard to the shares which are held in agricultural, real estate and industrial companies, Zakah is due on (Part No. 8; Page No. 168) the profits if they reach the Nisab (the minimum amount on which Zakah is due) on their own or when added to others, and a Hawl passes. The rate of Zakah is two point five percent (2.5 %). With regard to the assets, Zakah is not due on them if they are not intended for sale. Otherwise, Zakah must be paid on them and their profits when a Hawl passes as it is the case with all other commercial commodities. If the agricultural companies produce grains, dates or grapes, then the prescribed Zakah must be paid on them if the amount of each of them reaches five Wasqs (1 Wasq = 60 Sa`s =130,320 kg) or more.May Allah grant us success. May Allah's peace and blessings be upon our Prophet Muhammad and his family and Companions!