Question:
Is Zakat due on Sukuk al-Ijarah investments?
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
The Answer:
Ijarah Sukuk is based on an underlying Ijarah structure. Certificates are issued by a special purpose vehicle that entitles the holders to an ownership interest and a right to a return in proportion to their investment in the underlying Shariah compliant finance lease structure. The certificates represent an ownership interest in the underlying asset which is leased. As such, Zakat is not due on the value of the Sukuk certificates. Only the proceeds from this Sukuk certificate will be Zakatable as part of one’s Zakatable assets if one owns the proceeds on their Zakat anniversary.
And Allah Ta’ālā Alone Knows Best
Mufti Faraz Adam,
Shariah Advisor
Amanah Finance Consultancy
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