We are corporate stockbrokers offering an ‘execution only’ service to buy or sale shares on behalf of our clients. Our fee is fixed to X amount of money per a fixed value of shares traded e.g. £100 commission to trade £25,000 worth of shares. Sometimes, the shares can be bought/sold in one transaction, and sometimes [...]
It is not permissible to invest in Inverse ETF. Its structure is made up of derivatives and options which are non shariah compliant instruments. And Allah knows best! (Mufti) Billal Omarjee
Zakat is compulsory on any asset acquired with the intention of trading. Ibn Munzir has reported a consensus of scholars on this. However, the Zaahriyas, Imam Showkani and Sheikh Albani differed with the others and consider that trading stock are not zakatable. These scholars argue that there is a lack of clear Quranic verses or [...]
The value of an asset acquired with the purpose of leasing is not zakatable. This is the opinion of the Hanafis, Malikis, Shafi’is, Hanbalis, and adopted by the IFA of Jeddah and Al Lajnah Al Daimah. Some scholars such as Ibn ‘Aqil Al Hanbali on the other hand, believe that the zakat will still be [...]
According to a resolution of the Islamic Fiqh Academy of Jeddah, if trademarks and tradenames have been acquired with the intention of selling them, then zakat will be payable on their market value on the zakat day. And Allah knows best! (Mufti) Billal Omarjee
Is zakat payable on the capital invested in a bond certificate, or on its market price on the day zakat is due? Even if conventional bonds are considered as haram (impermissible), zakat will be due on the capital amount invested in them, and not the interest received. Since they are considered as a loan, the [...]
Bonds are non-shariah compliant investment due to the interest element it generates. If one is in possession of these financial instruments, zakat will be payable on the capital amount invested. However, should they also pay zakat on the interest they are receiving? First, let us categorise haram income into two categories. Those that are haram [...]
In a Mudaraba contract, zakat on the profit generated by the investment, will be payable by the capital owner. If the investment manager is considered as a Mudarib, then he will not pay zakat on his share of the profit until it is distributed to him, and one lunar year has passed subsequently. This is [...]
The objective of this Sukuk is usually similar to Ijarah financing, which starts with a lease contract, and ends with a promise of selling the underlying asset. Sheikh Abdullah bin ‘Issa is of the opinion that the zakat will be due every year on the total revenue generated. It does not make a difference if [...]
Since the objective of Sukuk Al Murabaha is for reselling, zakat will be due on its total market value of the zakat anniversary date. And Allah knows best! (Mufti) Billal Omarjee