The concept of zakat of Mustaghallat and its application to long term investment Sukuk

Mohd Noor, Azman and Kaba, Abdoul Razzak and Mohamed Shaarani, Ahmad Zakirullah and Saleh, Abdulmajid Obaid Hasan (2021) The concept of zakat of Mustaghallat and its application to long term investment Sukuk. In: The Importance of New Technologies and Entrepreneurship in Business Development: In The Context of Economic Diversity in Developing Countries. Lecture Notes in Networks and Systems . Springer International Publishing, Switzerland, pp. 1605-1614. ISBN 978-3-030-69220-9

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Abstract

The topic of financial markets and the Zakat rulings related to its prod-ucts is among the topics that reoccur from time to time with the changes in product versions and features as there are new developments related to long term investment products ranging from the shares in the stock market to the various forms of sukuk. Is it therefore conceivable to develop a fiqh ruling for those who own such long term instruments for investment and are await-ing the returns – similar to Zakat on “mustaghallat” (rental and lease income generating assets), where the zakat is only paid on the rental income? This is in fact the opinion of some of the Zakat bodies and institutions in Malaysia, specifically for Zakat on long-term investment products such as shares and Sukuk, where zakat is due on the dividends only after the passing of a full year, which is in line with the tax system. The question that this research presents is: Can zakat on long-term investment sukuk be considered equal to zakat on mustaghallat which is compulsory on the yields/ rental income on-ly? This research aims to investigate the new data on sukuk and review the accuracy of the ruling that their zakat is the same as the zakat of mus-taghallat.

Item Type:	Book Chapter
Additional Information:	2902/88871
Uncontrolled Keywords:	Zakat, Sukuk, Mustagallat.
Subjects:	BPH Islamic Economics BPH Islamic Economics > BPH437 Sukuk - Islamic Bond BPH Islamic Economics > BPH531 Zakat
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Institute of Islamic Banking & Finance (IIiBF)
Depositing User:	Dr Abdulmajid Obaid Hasan Saleh
Date Deposited:	31 Mar 2021 09:06
Last Modified:	11 May 2021 14:39
URI:	http://irep.iium.edu.my/id/eprint/88871

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