The Ruling on the Zakah of Shares Held in a Portfolio
Machine translationRead the Arabic original
The Shaykh:
May Allah greet you and bless you.
The questioner:
A questioner says: Honorable Shaykh, is there a zakah due on shares held in an external portfolio? Knowing that these shares have not reached their purchase price, and there is a paper loss on them that may now reach more than fifty percent. When liquidity becomes available during the year, is there any zakah on that? May Allah reward you.
The Shaykh:
In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad, and upon his family and all his Companions. Anything that is held for sale, whether goods or shares, for the purpose of trading in them, is subject to obligatory zakah. Its value is assessed at the end of the lunar year based on what these goods and shares are worth, and then one-tenth of a quarter (2.5%) is paid from it. Yes.
May Allah greet you and bless you.
The questioner:
A questioner says: Honorable Shaykh, is there a zakah due on shares held in an external portfolio? Knowing that these shares have not reached their purchase price, and there is a paper loss on them that may now reach more than fifty percent. When liquidity becomes available during the year, is there any zakah on that? May Allah reward you.
The Shaykh:
In the name of Allah, the Most Gracious, the Most Merciful. Praise be to Allah, Lord of the worlds, and may Allah send prayers and blessings upon our Prophet Muhammad, and upon his family and all his Companions. Anything that is held for sale, whether goods or shares, for the purpose of trading in them, is subject to obligatory zakah. Its value is assessed at the end of the lunar year based on what these goods and shares are worth, and then one-tenth of a quarter (2.5%) is paid from it. Yes.
Source
نور على الدرب - الفوزان - 02/279 — archive.org (0:51)
The Arabic text is a machine transcription of the audio recording.