Does Zakat Payable on Sukuk al-Ijarah?

No, Zakat is not due on Sukuk al-Ijarah certificates themselves. 

However, any earnings or profits generated from them are subject to Zakat.

Here’s how it works:

• No Zakat on the Certificates – Sukuk al-Ijarah represents ownership in leased assets rather than cash or tradeable goods, so the certificates themselves are not Zakatable.
• Zakat on Earnings – Any income received from these Sukuk investments is added to one’s Zakatable assets and included when calculating Zakat.
• Meeting the Nisab Threshold – If the proceeds from Sukuk, combined with other Zakatable wealth, reach the nisab of Zakat, then 2.5% of it must be given.
• Nature of Underlying Assets – In most cases, Sukuk al-Ijarah is backed by physical assets like real estate or infrastructure, which are not subject to Zakat. However, if the investment involves Zakatable assets such as tradeable goods, the rules may vary.

Thus, while Zakat is not payable on Sukuk al-Ijarah itself, the profits earned from it must be included in one’s Zakat calculation.

One meaningful way to use that Zakat is by sponsoring an orphan through Pakistan Sweet Home. Your support not only fulfills a spiritual duty but also transforms the life of a child who relies on this compassion to thrive.

And Allah knows best!

Other Zakat Questions You May Have

• Is Zakat Obligatory on Illegitimate Earnings?
• Can Unlawful Earnings Be Purified by Giving Zakat?
• Is Zakat Obligatory on a Personal Pension Plan?
• Does Zakat Apply to Property Pension with Physical Assets?
• Is Zakat Payable on Undeveloped Land and How is it Assessed?
• Is Zakat Obligatory on Career-Average Pensions?