Author: jknfatawa1

11^th March 2026

Question: Is investment permissible in Islām as I have heard conflicting views on this matter? Please explain how it works and how is Zakāt calculated on Investments.

 الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

Answer

In response to your inquiry, investment refers broadly to the allocation of capital with the purpose of generating wealth. Stocks, on the other hand, are specific types of assets representing ownership in a company through shares purchased via authorised agents. So, investing involves individuals using their funds to purchase equity in a company, thereby profiting from its growth potential. Companies possess various assets, including stocks, and often issue shares to raise capital for business expansion. When an individual, such as Person ‘A’, acquires 20% of a company’s shares for £500, they effectively obtain a 20% ownership stake in the company’s assets and become a shareholder. Unlike traditional transactions between two parties, stock purchases grant investors proportional ownership in a corporation alongside other shareholders.

Typically, shareholders transact through company-appointed or independent agents who facilitate investments on their behalf. Companies issue shares both to generate additional revenue for growth purposes and to provide investors with opportunities for profit. Shareholders receive certification as evidence of their ownership percentage. The extent of ownership is directly related to the amount invested, greater investment results in a larger shareholding. While shareholders may benefit financially from the company’s success, they also assume the risks inherented in any investment, as returns are not guaranteed.

Investors make money in one of the following two ways.

1. Increase in Capital Gain – This simply means that you purchase stocks and hold on to it until the company grows and resell it onto interesting buyers with profit. If you purchased 20% for £500 ad not that stock in a few months increases to £700 then you sell it at that price (£200 profit).
2. Dividend – The goal is to remain as a shareholder in the company and benefit from the profit accrued on the initial investment. The profits your gain is known as dividend.

From the fiqh perspective, the laws of investments in a company are similar to Islamic concept of musharakah (partnership) system.[1] Companies operate differently with varying assets and trading methods. The Islamic legality will depend on the following conditions.

1. The investment stock must be halal. Investing in companions such as alcohol, insurance, pornography etc are strictly forbidden.
2. Investing in fixed and raw assets only. If the stocks are in liquid forms (cash) then it is not permissible and the dividend will be tantamount to interest (if the returns are more or less than the initial investment).
3. The company does not deal with interest (or any unlawful transaction). If they do and the entire company’s stock revolves around interest dealings, then it will be prohibited to invest. Contrarily, if the interest amount is minimal and not the objective in itself but raw assets, then investing would be permissible. When receiving the returns, if it is possible to identify the amount of interest then to dispose of that portion by giving it away to the neediest without the intention of reward.
4. Does not involve in transactional sales forbidden in the Shariah e.g. selling stocks before taking possession over them (e.g. short sales), bonds, future sales, non-existent stocks, deception and so forth.[2]

The confusion surrounding the legality of investments is tied to the conditions mentioned above. It’s not possible to make a general judgment without understanding the company’s assets and trading practices. With that in mind, it’s recommended to either independently confirm the details with the company before investing or to consult trustworthy and legitimate Halal investment professionals.

Calculating Zakāt on stocks depends on the purpose of investment. If it is for capital gain then following the laws of Zakāt on sales, Zakāt will be calculated on their market value. If the purpose is not to resell but to benefit from the annual dividends then Zakāt will be calculated on the Zakatable assets only such as the profits gained, cash, gold, silver etc. Fixed assets such as clothes, building, machines, phones etc won’t be Zakatable.

 [Allãh Knows Best]

Written and researched by (Mufti) Abdul Waheed

Answer Attested by Shaykh Mufti Saiful Islam

JKN Fatawa Department

[1] This is based on Shaykh Maulana Ahsraf Ali Thanvi’s view. However, though investments do not bear full similarity with the Islamic model of Musharakah, they are still subjected to the similar conditions.

[2] For mor details see, Shariah standards, pp. 560-566, Mufti Radha ul-Haq, Fatawa Darul ulum Zakariyyah, vol 5, pp. 219-222, Mufti Taqi Usmani, Islām aur Jadeed Ma’ayish, pp. 85-94, Mufti Taqi Usmani, Fiqhi Maqalat, vol 1, p. 141-156, Shaykh Khalid Sayfullah Rahmani, Jadeed Fiqhi Masail, vol 1, p. 378 & vol 4, p. 249

24^th February 2026

 السلام عليكم و رحمة الله و بركاته

Question: Can we use Zakāt money and purchase poor children’s clothes rather than giving the actual money in cash? Also, what about buying food for poor families?

الجواب حامداً و مصلياً

Answer: Amongst the conditions for the validity of Zakāt is transferring complete ownership of the Zakāt money to the rightful recipient of Zakāt.[1] so as long as this condition is fulfilled one may choose to give the Zakāt money in the form of cash or any other physical asset such as clothes or food.[2] If the eligible recipient receives any of the above by way of physical possession including complete ownership (tamleek), Zakāt will be fulfilled.

Based on the above using Zakāt money and purchasing poor children’s clothes or food for poor families (rather than giving actual money in cash) will be permissible provided that the eligible recipients receive these clothes and food physically and are independently given complete ownership. If the purchased items do not reach them, nor are they given individual ownership for instance, using the money to purchase produces and cook food for them, then Zakāt will not be fulfilled.

Allāh Knows Best

Written by:  Apa Kinza          Reviewed by: Mufti Abdul Waheed

Attested by: Shaykh Mufti Saiful Islam        

JKN Fatawa Department

[1] Imam Kasāni, Badai Sanai, Kitāb Zakāt, Fasl fi rukn Zakāt, p. 456, vol 2

وَأَمَّا رُكْنُ الزَّكَاةِ فَرُكْنُ الزَّكَاةِ هُوَ إخْرَاجُ جُزْءٍ مِنْ النِّصَابِ إلَى اللَّهِ تَعَالَى، وَتَسْلِيمُ ذَلِكَ إلَيْهِ يَقْطَعُ الْمَالِكُ يَدَهُ عَنْهُ بِتَمْلِيكِهِ مِنْ الْفَقِيرِ وَتَسْلِيمِهِ إلَيْهِ أَوْ إلَى يَدِ مَنْ هُوَ نَائِبٌ عَنْهُ وَهُوَ الْمُصْدِق

[2] Ibn Nujaim, Bahr Raiq, Kitāb Zakāt, p. 352-353, vol 2

قَالَ فِي الْكَشْفِ الْكَبِيرِ فِي بَحْثِ الْقُدْرَةِ الْمُيَسِّرَةِ: الزَّكَاةُ لَا تَتَأَدَّى إلَّا بِتَمْلِيكِ عَيْنٍ مُتَقَوِّمَةٍ حَتَّى لَوْ أَسْكَنَ الْفَقِيرَ دَارِهِ سَنَةً بِنِيَّةِ الزَّكَاةِ لَا يُجْزِئُهُ؛ لِأَنَّ الْمَنْفَعَةَ لَيْسَتْ بِعَيْنٍ مُتَقَوِّمَةٍ. اهـ. وَهَذَا عَلَى إحْدَى الطَّرِيقَتَيْنِ، وَأَمَّا عَلَى الْأُخْرَى مِنْ أَنَّ الْمَنْفَعَةَ مَالٌ فَهُوَ عِنْدَ الْإِطْلَاقِ مُنْصَرِفٌ إلَى الْعَيْنِ، وَقُيِّدَ بِالتَّمْلِيكِ احْتِرَازًا عَنْ الْإِبَاحَةِ؛ وَلِهَذَا ذَكَرَ الْوَلْوَالِجِيُّ وَغَيْرُهُ أَنَّهُ لَوْ عَالَ يَتِيمًا فَجَعَلَ يَكْسُوهُ وَيُطْعِمُهُ وَجَعَلَهُ مِنْ زَكَاةِ مَالِهِ فَالْكِسْوَةُ تَجُوزُ لِوُجُودِ رُكْنِهِ، وَهُوَ التَّمْلِيكُ، وَأَمَّا الْإِطْعَامُ إنْ دَفَعَ الطَّعَامَ إلَيْهِ بِيَدِهِ يَجُوزُ أَيْضًا لِهَذِهِ الْعِلَّةِ، وَإِنْ كَانَ لَمْ يَدْفَعْ إلَيْهِ، وَيَأْكُلْ الْيَتِيمُ لَمْ يَجُزْ لِانْعِدَامِ الرُّكْنِ، وَهُوَ التَّمْلِيكُ

10^th February 2026

السلام عليكم ورحمة الله وبركاته

Question: I’m calculating years of missed Zakāt and am seeking clarity regarding disability benefits that were intended for me, but received and controlled by my father, as I did not have a bank account during childhood. I was born with a disability and received government disability benefits. From birth to age 16, I was awarded Disability Living Allowance (DLA). According to the UK government website, DLA is intended for the disabled child, but the parent must apply on the child’s behalf, so my father applied for it. Although intended for me, the payments were made into my father’s bank account as I of course didn’t have a bank account then. So he received all of these funds and had full control of it. I never accessed or received this money directly. My father still always provided for me whenever I needed some money. My question is, who is responsible for paying Zakāt on the money from DVL? Is it me or my father?

الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

Answer

Regarding your question, the individual who has complete authority over spending the money is considered its owner, making them responsible for paying Zakāt. To explain further, one must have full ownership of Zakātable wealth in order to be required to pay Zakāt. Ownership involves having actual possession as well as control over transactions and their benefits. Based on your description, it seems the funds were deposited into your father’s account and managed all the spending. As such, your father, not you, is responsible for paying Zakāt on that amount.[1]

[Allãh Knows Best]

Written and researched by (Mufti) Abdul Waheed

Answer Attested by Shaykh Mufti Saiful Islam

JKN Fatawa Department

[1] Mawsuah fiqhiyyah Kuwaytiyyah vol 39, p. 31 – 33

الْمِلْكُ لُغَةً – بِفَتْحِ الْمِيمِ وَكَسْرِهَا وَضَمِّهَا -: هُوَ احْتِوَاءُ الشَّيْءِ وَالْقُدْرَةُ عَلَى الاِسْتِبْدَادِ بِهِ وَالتَّصَرُّفُ بِانْفِرَادِ .

وَفِي الاِصْطِلاَحِ: يُعَبِّرُ الْفُقَهَاءُ الْمُحْدَثُونَ بِلَفْظِ الْمِلْكِيَّةِ عَنِ الْمِلْكِ، لَكِنَّ الْفُقَهَاءَ قَبْلَهُمْ يُعَبِّرُونَ بِلَفْظِ الْمِلْكِ.

وَقَدْ عَرَّفَ الْقَرَافِيُّ الْمِلْكَ – بِاعْتِبَارِهِ حُكْمًا شَرْعِيًّا – فَقَال: الْمِلْكُ حُكْمٌ شَرْعِيٌّ مُقَدَّرٌ فِي الْعَيْنِ أَوِ الْمَنْفَعَةِ، يَقْتَضِي تَمَكُّنَ مَنْ يُضَافُ إِلَيْهِ مِنَ انْتِفَاعِهِ بِالْمَمْلُوكِ وَالْعِوَضِ عَنْهُ مِنْ حَيْثُ هُوَ كَذَلِكَ . …..وَقَال ابْنُ الشَّاطِ: الْمِلْكُ هُوَ تَمَكُّنُ الإِْنْسَانِ شَرْعًا بِنَفْسِهِ أَوْ بِنِيَابَةِ مِنَ الاِنْتِفَاعِ بِالْعَيْنِ أَوْ بِالْمَنْفَعَةِ وَمِنْ أَخْذِ الْعِوَضِ، أَوْ تَمَكُّنِهِ مِنَ الاِنْتِفَاعِ خَاصَّةً…….

وَالْمِلْكُ التَّامُّ: هُوَ مِلْكُ الرَّقَبَةِ وَالْمَنْفَعَةِ، وَالْمِلْكُ النَّاقِصُ: هُوَ مِلْكُ الرَّقَبَةِ فَقَطْ، أَوِ الْمَنْفَعَةِ فَقَطْ، أَوِ الاِنْتِفَاعِ فَقَطْ.

يَقُول الزَّرْكَشِيُّ: الْمِلْكُ قِسْمَانِ: تَامٌّ وَضَعِيفٌ، فَالتَّامُّ يَسْتَتْبِعُ جَمِيعَ التَّصَرُّفَاتِ، وَالضَّعِيفُ بِخِلاَفِهِ، ثُمَّ اسْتُعْمِل مُصْطَلَحُ النَّاقِصِ أَيْضًا

Kasān, Badā’i Sanāi, Kitāb Zakāt, vol 2 p. 9-10

وَمِنْهَا الْمِلْكُ الْمُطْلَقُ وَهُوَ أَنْ يَكُونَ مَمْلُوكًا لَهُ رَقَبَةً وَيَدًا وَهَذَا قَوْلُ أَصْحَابِنَا الثَّلَاثَةِ

Ibn Humām, Fathul Qadeer, Kitāb al-Buyu’, vol 6 p. 248

فَالْمِلْكُ هُوَ قُدْرَةٌ يُثْبِتُهَا الشَّارِعُ ابْتِدَاءً عَلَى التَّصَرُّفِ فَخَرَجَ نَحْوُ الْوَكِيلِ

Shaykh Khalid Sayfullah Rahmani, Qamus al-Fiqh, vol 5, pp. 139-141,  Mufti Amim Ihsan, Maj’mu at lil Qawaid al-Fiqhiyyah, p. 296

29^th January 2026

السلام عليكم ورحمة الله وبركاته

Question: If I lent money out to a relative 10 years ago, I still haven’t received it back. I don’t know when I’ll get it back, as there’s no date stipulated. Must I still pay Zakāt on it over the years until he gives it or not? Also, if he happens to return it, then must I still pay Zakāt over the previous years too?

 الجواب حامداً و مصلياً

In the name of Allāh, the Most Gracious, the Most Merciful

Answer:

As a general principal, the creditor is obliged to pay Zakāt on the money he lends since he still maintains ownership of the money (even if he does not yet physically possess it) irrespective of the number of years.[1] The Zakāt due upon him can either be paid altogether at once when he receives the money, or he can pay yearly on the amount owed to him.[2] If he pays yearly, he will deduct 2.5% of the amount he lent each year until that money is returned. If he pays altogether, then he will deduct the amount the Zakāt due on him each year.[3]

Based on the above, if you lent money to a relative 10 years ago and have still not received the money back, then so long as they acknowledge that they owe you and promise to pay you, you are still obliged to pay Zakāt on the amount that you are owed. Since there is no date stipulated and you are not aware when you will receive the money back, you could either pay Zakāt yearly on the amount lent or choose to pay once the money is returned (see footnote 3 on how to calculate Zakāt on previous years). The same ruling will apply if he does happen to return the money, back to you.

If, however, the debtor refuses to acknowledge any debt owed to you or there is no way of retrieving that money and lose all hope of gaining access to it then the Zakāt of the previous years now drops because it is outside of your ownership.

Allāh Knows Best

Written by:  Apa Kinza          Reviewed by: Mufti Abdul Waheed

Attested by: Shaykh Mufti Saiful Islam        

JKN Fatawa Department

[1] [Bahru Raaiq sharh kanz dqaa’iq, zayn deen ibn nujaym, kitab zakah, sharth wujub zakah, vol 2, pge 223]

 قَسَّمَ أَبُو حَنِيفَةَ الدَّيْنَ عَلَى ثَلَاثَةِ أَقْسَامٍ: قَوِيٌّ، وَهُوَ بَدَلُ الْقَرْضِ، وَمَالُ التِّجَارَةِ، وَمُتَوَسِّطٌ، وَهُوَ بَدَلُ مَا لَيْسَ لِلتِّجَارَةِ كَثَمَنِ ثِيَابِ الْبِذْلَةِ وَعَبْدِ الْخِدْمَةِ وَدَارِ السُّكْنَى، وَضَعِيفٌ، وَهُوَ بَدَلُ مَا لَيْسَ بِمَالٍ كَالْمَهْرِ وَالْوَصِيَّةِ، وَبَدَلِ الْخُلْعِ وَالصُّلْحِ عَنْ دَمِ الْعَمْدِ وَالدِّيَةِ، وَبَدَلِ الْكِتَابَةِ وَالسِّعَايَةِ فَفِي الْقَوِيِّ تَجِبُ الزَّكَاةُ إذَا حَالَ الْحَوْلُ، وَيَتَرَاخَى الْقَضَاءُ إلَى أَنْ يَقْبِضَ أَرْبَعِينَ دِرْهَمًا فَفِيهَا دِرْهَمٌ، وَكَذَا فِيمَا زَادَ بِحِسَابِهِ، وَفِي الْمُتَوَسِّطِ لَا تَجِبُ مَا لَمْ يَقْبِضْ نِصَابًا، وَيُعْتَبَرُ لِمَا مَضَى مِنْ الْحَوْلِ فِي صَحِيحِ الرِّوَايَةِ، وَفِي الضَّعِيفِ لَا تَجِبُ مَا لَمْ يَقْبِضْ نِصَابًا وَيَحُولُ الْحَوْلُ بَعْدَ الْقَبْضِ عَلَيْهِ،

[2]  [Badai’u sanai’i fi tarteeb shari, imam al kasaani, kitab zakah, fasl sharaithu    fardiyyatu zakah, vol 2, pge 10]

وَقَالَ أَبُو يُوسُفَ وَمُحَمَّدٌ: الدُّيُونُ كُلُّهَا سَوَاءٌ، وَكُلُّهَا قَوِيَّةٌ تَجِبُ الزَّكَاةُ فِيهَا قَبْلَ الْقَبْضِ إلَّا الدِّيَةَ عَلَى الْعَاقِلَةِ وَمَالَ الْكِتَابَةِ فَإِنَّهُ لَا تَجِبُ الزَّكَاةُ فِيهَا أَصْلًا مَا لَمْ تُقْبَضْ وَيَحُولُ عَلَيْهَا الْحَوْلُ.

وَجْهُ قَوْلِهِمَا أَنَّ مَا سِوَى بَدَلِ الْكِتَابَةِ وَالدِّيَةِ عَلَى الْعَاقِلَةِ مِلْكُ صَاحِبِ الدَّيْنِ مِلْكًا مُطْلَقًا رَقَبَةً وَيَدًا؛ لِتَمَكُّنِهِ مِنْ الْقَبْضِ بِقَبْضِ بَدَلِهِ وَهُوَ الْعَيْنُ فَتَجِبُ فِيهِ الزَّكَاةُ كَسَائِرِ الْأَعْيَانِ الْمَمْلُوكَةِ مِلْكًا مُطْلَقًا إلَّا أَنَّهُ لَا يُخَاطَبُ بِالْأَدَاءِ لِلْحَالِ

[3] For more details on how a creditor must calculate Zakāt on previous years, click the link below.

https://jknfatawa.co.uk/how-should-a-creditor-calculate-zakat-on-the-previous-years/