Land set aside for trade on which the installments have not yet been paid off: is zakah due on it?

The questioner : All right, go ahead. Hello.

The Shaykh : Yes.

The questioner : Peace be upon you.

The Shaykh : Peace be upon you.

The questioner : I bought a plot of land for twenty-three thousand riyals about a year ago and paid a down payment of six thousand riyals, with the rest in monthly installments of five hundred riyals each. Is zakah due on the land now?

The Shaykh : Did you buy it for trade?

The questioner : Yes, with the intention of selling and trading.

The Shaykh : In that case, there is zakah on it. You estimate its value every year and pay the zakah on it.

The questioner : But I haven’t finished paying off the installments yet, Shaykh.

The Shaykh : If you haven’t finished paying, yes, it is obligatory to pay its zakah, even if you haven’t finished paying its value.

The questioner : How is its value determined, Shaykh?

The Shaykh : You ask the real estate offices what this land is worth. If they say it is worth, for example, such and such, you pay the zakah.

The questioner : Yes.