Is Zakat Payable on Sukuk al-Murabahah?

Yes, Zakat is payable on Sukuk al-Murabahah, as the value of the Sukuk certificates is considered Zakatable.

Sukuk al-Murabahah is a Shariah-compliant bond based on a cost-plus-profit sale agreement, where proceeds fund asset purchases and profits are pre-agreed.

Zakat is an obligatory charity for Muslims based on their wealth. Its application to Sukuk al-Murabahah is a Sharia-compliant investment certificate that represents ownership of an asset, often raising questions. 

Financial institutions issue Sukuk al-Murabahah Certificates. 

Here’s a clearer explanation of whether Zakat applies to these certificates:

• Zakat on Sukuk Certificates:

The value of Sukuk certificates is generally Zakatable. This means that if you hold Sukuk, you are required to pay Zakat on their value, just as you would on other assets like cash or gold.

• Conditions for Zakat:

Zakat is payable if:

• You meet the nisab of Zakat (the minimum amount of wealth required).
• A lunar year has passed since you acquired the Sukuk.

• Zakat on Profit:

The profit earned from Sukuk, such as the return on investment or interest-like income, is also subject to Zakat. This is treated as income and must be included in your Zakat calculation.

• Calculating Zakat:

Zakat is calculated based on the current market value of the Sukuk certificates when the Zakat becomes due. If the value of the Sukuk has increased, you must pay Zakat for the higher value.

Thus, Zakat is payable on the value of Sukuk al-Murabahah as well as the profit derived from them, subject to the usual Zakat conditions.

And Allah knows best!