Q: Is Zakat due on Sukuk investments?
A: A sukuk is a sharia compliant financial instrument (contrary to a conventional interest-bearing bond) used to finance large projects. The issuer of the sukuk, sells the investors a certificate and the proceeds are used to purchase an asset which the investors have direct ownership on. The sukuk thus provides the investor(s) payment streams.
Zakat on Sukuk investments depends on the underlying assets. If the underlying asset is a Zakatable asset, Zakat will be payable on the Sukuk.
And Allah knows best!
Reviewed on 09/11/2021
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