What is the ruling on paying zakah on money invested as shares worth two hundred thousand riyals?

The questioner : Your Eminence! What is the ruling on paying zakah on money invested as shares worth two hundred thousand riyals? Is zakah paid on the profit or on the capital, even though there is no capital left now because expenses were paid? What should we do? May Allah reward you with good?

The Shaykh : Yes. This depends on the shareholder. If the shareholder wants his shares to remain in the company to utilize them, then he owes nothing except on the cash. As for if it was spent on equipment or the like, he owes nothing. But if he is one who trades in shares, meaning he does not want his participation to continue, but rather whenever he gets a profit he sells these shares and buys other shares, then he must pay zakah on the share according to its value when zakah becomes obligatory. So if the share was one hundred riyals when he first invested, and then it increased to one thousand riyals, let him pay zakah on one thousand riyals.

The questioner : On the capital and not on the profit?

The Shaykh : The profit, he will take it and include it in wealth that follows the capital. Yes.