The following are quotes from Fiqh Al Zakah[1] Dr Y. Al Qaradawi [2] Translated by Dr Monzer Kahf[3] (Volume I, Author Introduction pages xx & xxi)
“As for the issue of zakah, there is very little concern for its research by scholars. Such an important matter like zakah still needs more study and research, especially since it is one of the fundamental obligations of Islam and a cornerstone of its financial, economic, and social system.
2. Muslim jurists differ on many details of zakah. Each has his own opinion and arguments, and there are sometimes contradictions among their interpretations, which leaves the majority of people in chaos and confusion about what opinion to choose.”
Dr. Al Qaradawi added: To this need the late Sheikh Mahamud Shaltut referred in his book ‘Islam, Doctrine and Law’[4], saying under the title ‘Zakah, A Principal Religious Pillar’:
“In spite of my belief that theoretical differences are indications of thinking vitality and flexibility of the system that accommodates such differences, I feel uneasy when I see the range of difference among the schools of thought on the application of this obligation of the Zakah, as it is exposed in the books of jurisdiction and injunctions. This obligation of Zakah, that is usually associated with prayer ought to be, like prayers, commonly understood.
In prayers we see not much room for differences – just five prayers in the day and night. Unlike prayers, we observed that even the ratio, the exemption, the kinds of wealth that are zakatable are subject to differences among scholars. Such differences have serious implications for Muslims at large when it comes to their application of the Islamic obligation of Zakah. For example, some scholars consider the wealth of children and insane individuals zakatable, others don’t. Some scholars consider all agricultural products zakatable, others restrict zakah to specific kinds only. Some consider debts zakatable, others don’t. Similar differences exist for business assets and women’s jewellery. Some require certain minimum (nisab) for the zakatability, some don’t. etc. The same kind of differences also exists about the disbursement of Zakah.”
The late Sheikh Shaltut called for a review of those differences among schools of thought, which he feared may mar the essence of this obligation. Such a review should be based on the ultimate objectives of Zakah as cited in the Quran, so Muslims could understand and apply it on the same level”. End of quote.
Dr Qaradawi added in page 259 under the title: Zakatability of earned income, Fiqh Al Zakah.
“I myself have examined these differences as well as differences on the same issue inside each school of thought, and noted many unnecessary details and complications, so many that I do not believe it is at all likely that our easy-flowing Shari’ah, which is addressed to all people, can accommodate such minute, complicated details, especially with regard to one of its essential and more predominant pillars[5].” End of Quote.
Perhaps the jurists and scholars did not differ on a matter as much as they differed on the subject of zakat, this may be due to the fact that they inferred the rules of zakat from separate provisions and conditions, which showed that zakat differed for each type of money, for example, a quarter of tenth (2.5%) from the dinars and dirhams due at the passing of one year, the number and the bands in the grazing cattle to be taken one time every year, while one-tenth (10%) of the crop taken at harvest if the land was watered by rain, or half the tenth (5%) if watered by well.
In this research, I will address the issues raised by Al Imam Al Sheikh Shaltut and Dr Qaradawy as quoted above, a view shared by many prominent scholars. And insha’Allah will propose one simple rule that applies to all forms of money, which all Muslims can understand and apply.
Zakat[6] is due on the agricultural crop, cash زكاة النقدين , merchandise and on grazing cattle السوائم . As of today, the amount and from where it is taken; differ for each of the mentioned forms of money.
- For Agricultural produce, zakat is taken from the crop, which is the yield of the land and the effort put in farming it. So zakah here is taken from the growth.
- For the money (cash and property), zakat is taken from the money itself at the end of every year, i.e., it is taken from the capital (not from its growth), as there is no growth here.
- Finally, for the domestic grazing animals, zakat is taken from the herd once every year, as the count includes the newly born, it is taken from both the capital and the growth.
The question: Is Zakat taken from the Capital or from the Growth? was answered by scholars from the various schools (Mazaheb), that Zakat is imposed on growing capital and on capital capable of growing (even if it did not grow).
In this research, we differ with this principle; we are of the opinion that Zakat is taken from earnings, and in the case of investment it is imposed on the growth of the invested capital, not the capital itself. Our reasons are derived from the holy Quran and Hadith. We will present our reasons and explain how al zakat on cash and al zakat on grazing cattle; both are taken from the capital; can also be explained to show that they are in reality zakat on the growth, similar to al zakat on crops which are taken from the growth (which is the yield/income/ growth resulting from cultivating the land ).
Al Zakat
In Quran, the new Arabic word Al Zakat was introduced to the Arabs for the first time to name the obligatory charity. الصدقة المفروضة The meaning of the word Zakat (which is derived from Zaka) indicates growth, and the early scholars have found ‘growth’ in both agriculture and the grazing animals, but could not find it in cash النقود, such as the 20 Dinars and 200 Dirhams.
In the beginning, Moslems were instructed to pay charity from surplus money they may have, as in the verse: {They ask you what to spend, say Al Afou} 2/219
Al Afou is the increase and the surplus (The excess, what is beyond needs). This was before al zakat became obligatory and its amounts were defined in al-Sunnah (Sunnah فعلية and Hadith).
The following Quran verse refers to Zakat (together with the Sunnah confirms it is obligatory):
{خُذْ مِنْ أَمْوَالِهِمْ صَدَقَةً تُطَهِّرُهُمْ وَتُزَكِّيهِم بِهَا وَصَلِّ عَلَيْهِمْ ۖ إِنَّ صَلَاتَكَ سَكَنٌ لَّهُمْ ۗ وَاللَّهُ سَمِيعٌ عَلِيمٌ (103) }
{From their money, Take Sadaqah (alms) to purify and sanctify them with it, and pray for them; your prayer is a comfort for them; and Allah is Hearing and Knowing.} 9/103
The following Quran verse defines of which money Zakat is taken from:
في قوله تعالى: (يَا أَيُّهَا الَّذِينَ آمَنُوا أَنْفِقُوا مِنْ طَيِّبَاتِ مَا كَسَبْتُمْ وَمِمَّا أَخْرَجْنَا لَكُمْ مِنَ الْأَرْضِ ۖ ……) (البقرة 267)
{O you who have believed, spend from the good things which you have earned[7] and from that which We bring forth for you from the earth[8]} 2/267
{O you who have believed, spend from the good things which you have earned and from that which We bring forth for you from the earth} 2/267
This verse 267, states the money from which Zakat is taken, is the money you earned, indicating it is any new money you earned as a result of work, investment, growth, ..etc., it is not the capital or the wealth you already have. The following two verses show that Earnings are different from the already owned wealth, such as property, money or capital.
يقول تعالى { ما أغنى عنهُ مالُهُ وما كَسَبَ } آية 2 سورة 111
{His money will not avail him and that which he earned (gained) (2)} Surat 111.
Here, money or wealth is separated from al kasb, the money earned.
{وما تدرى نفس ماذا تكسبُ غداً}. آية 34 سورة لقمان 31
{And no soul perceives what it will earn tomorrow (34)} Surat 31
From above, it is clear that the word used in Quran ‘Kasaptum’ from ‘Kasb’, indicates earned and earnings, which defined the money from which zakat is taken as new money you earned, it is not the wealth you already have. (However, as will be stated after, you must invest all surplus money you have, thereafter whatever you will earn from such investment, will be subject to zakah).
Now we go back to the question: Is Zakat taken from the Capital (wealth) or from its Growth?
Early scholars concluded that Zakat is due from the growth of the money (such as profit and any natural growth like the newly born in animals). And from all money capable of growth, even if it did not grow. On the other hand, other money which is not a surplus to a person living costs and needs, such as the house, the car and all money needed to meet his and his family’s living expenses, are not subject to paying zakat.
Ibn Rushd wrote in his ‘The Introductions’ (Al Muqdamah page 201): “Al Zakat was named so because it is only taken from the money intended for growth, not from the kept property. Zakat in language is Growth and was named accordingly because it is related to it[9].”
Al Zayla3i الزيلعى in his book ‘تبين الحقائق شرح كنز الدقائق[10]’ page 253 on the reason why the condition of one year must pass before a kept money become subject to zakah; he said: “Because the due [for zakat] is part of the surplus not from the capital, for Quran verse {They ask you what to spend, say al Afou} meaning the surplus and growth, and it most likely to occur in a year, so the apparent cause which is the passing of a year is used in place of the true cause which is the growth.”
The scholars concluded that zakat is taken from the money intended for and capable of growth.
This is not what verse 267 surah 2 stated, {spend from the good things which you have earned and from that which We have produced for you from the earth}, which indicates the money from which zakat is taken is ‘earnings and what produced from the earth’, indicating it is due from growth and not from capital or wealth. Look at Al Zayla3i statement: “Because the due is part of the surplus not from the capital”.
But the scholars did not put that actual acquiring the growth تحقق النماء as a condition, and ruled that Zakat is due on all surplus money capable of growth, even if no growth is achieved, thus made al zakat due from the capital.
The reason of the scholars taking this view could be found in al zakat on the gold and silver coins زكاة النقدين , which is taken from the capital if it stayed in possession for one Hijri year, and from al zakat on the grazing livestock زكاة السوائم , which is also taken from the capital and its growth annually at the end of each year.
But the Quran verse 267:2 is indicating clearly that zakat is taken from earnings, not from capital. In addition, zakat on agricultural land and plantations is taken from the crop, which is the yield (growth) of the land, and is taken on the day of harvest, when such growth is acquired, { Eat of its fruit when it yields and give its due [zakah] on the day of its harvest} verse 141 Surah 6. We notice the condition of the one year is not required here.
Al Zakat on the agricultural land is taken from the growth and not from the capital, being the land, so we could say here that Al zakat is taken from the growth when it occurs. It is taken at a rate of 10% of such net growth. If the harvest failed, and no crop appeared, then there will be no zakat on this land, in other words, no zakat on the capital, which -in this case- is the land.
“ فِيمَا سَقَتِ السَّمَاءُ وَالْعُيُونُ أَوْ كَانَ عَثَرِيًّا الْعُشْرُ، وَمَا سُقِيَ بِالنَّضْحِ نِصْفُ الْعُشْرِ ”.
The Prophet (ﷺ) said, “On a land irrigated by rainwater or by natural water channels or if the land is wet due to a nearby water channel; Ushr (i.e. one-tenth) is compulsory (as Zakat). On the land irrigated by a well, half of an Ushr (i.e. one-twentieth) is compulsory (as Zakat on the yield of the land).”
Now we have a simple rule, supported by Al Quran and Al Hadith, that applies to one form of money and to one investment activity. As the condition of equality, necessitate that zakat shall apply equally to all forms of investments, being either trade, industry, farming,….etc., in order for the national economy to achieve a balanced growth, where no sector be preferred while the others deprived of capital, we assume that al zakat of the tenth of the net growth should apply to all other investments in whichever economy fields money may be invested in.
As we said, what contradicts this assumption, is al zakat on gold and silver coins, which is quarter of one tenth of the capital, and this money was not invested and accordingly did not grow, so zakat here is taken from the capital. And similarly the zakat on the grazing cattle, which is taken from the cattle itself.
We will provide hereafter analysis of the zakat due on these two forms of money, the cash and the grazing cattle:
Zakat on the Gold & Silver Coins[11]: زكاة النقدين
All Money & Wealth belongs to Allah, Allah entrusted and delegated us to use this money in the way as directed in the Quran and Sunnah {Believe in Allah and His Messenger and spend out of that in which He has made you successors} verse 7 Surah 57. Al Qurtoby القرطبي said: “This is a proof that the ultimate owner is Allah, and man has no choice but to deal with the money in accordance with what is accepted by Allah, and his reward will be paradise”
We are strongly prohibited from hoarding our money and keeping it out of work. Many verses in Quran and Hadith direct us away from hoarding which is considered a sin. On the other hand, if there was a surplus in the money, we are instructed to invest this surplus and cause it to grow. Should everybody invest his or her surplus money, this will lead to strong economical activities, leading to a prosperous economy which in turn will create many work and employment opportunities, so the needy and the poor will find work and earn wages saving them from the need to ask for charity.
If one invested the money and it grew as a result, one-tenth of that growth should be paid as zakat at the time when it occurs. On the other hand, if one hoarded the surplus money (entrusted to him by Allah), and did not invest it or contract it to an expert to invest it for him, then he is obliged to pay zakat from the money itself even if the money did not grow.
The explanation for that could be found in the Mudarabah Contract[12]. If you give a Mudareb (Working Partner) a capital to invest it for you and you agreed to equally share al Mudarabah profit, and if al Mudareb got busy with other ventures, neglected your money and did not invest it, keeping it idle during all the period of the Mudarabah, the Mudareb will be in breach of the Mudarabah contract, and he is obligated to return your capital and to pay you from his own money, an equal amount to what was your share of the unrealized profit[13], (this unrealized profit, will be determined to be equal to an achieved profit of a similar Mudrabah conducted in the local market or as decided by a Judge[14]. This is because Al Mudareb, as a result of his failure to invest your money, has caused you to lose the profit, which you were going to make if he did not neglect your money and defaulted on his obligations. So he is responsible to compensate you for such unrealized profit, from his own money.
If we apply the same condition, on the money entrusted to us by Allah, on the condition that we invest it and thereafter give one-tenth of the net profit to the needy (as zakah). So, if we invested the money and made a profit we pay one-tenth of such profit to al zakat eligible receivers. If we neglected to invest the money, and the proof of our neglect is ‘keeping the money idle for one year, then we defaulted on the condition mentioned above, and therefore we are obligated to pay the tenth of the ‘Similar Profit’ ربح المثل to al zakat eligible receivers.
Similar profit is estimated to be 25% of the capital, accordingly the tenth of this 25% is 2.5% which is the same quarter of the tenth due zakat on all surplus money which stayed idle for one year, as per the mentioned Hadith Sharif.
Here, it is clear the importance of the condition of one year, which provides the proof that the money was not invested, and thus a breach of the condition was committed.
The Prophet ﷺ said: “No zakat in money till one year passes[15]”. The money here is not earnings, profit or crops; it is the capital, that is why there is no zakat on such capital till it is proven that it was kept idle for one year, only then it will be treated as kept idle money and zakat will be due as tenth of the similar profit, estimated at 25% of the capital. The year is taken as such, because a person or a mudareb may delay investing the money for several months till the market conditions become favourable or an investment opportunity will arise, so he is allowed to delay for part of a year. However, a full year will clearly show that he defaulted and failed to invest the money.
The above explains that the basic rule for the silver and gold coins, is to invest the money and pay one tenth of the net growth for zakat. If no growth is achieved, meaning the investment did not return any profit or it ended in a loss, then no zakat is due. On the other hand, If you failed to invest, and the proof of such failure is keeping the money idle for one year, then you pay zakah 2.5% of the capital[16] paid from your own money, from the capital.
Some may say net profit of 25% is high.
Validation of the 25% Net Profit mentioned above:
- Net profit on a capital invested for example in trading, probably several trading cycles during one full year, is considered feasible at between 15 to 25%. As this estimate is to be considered for the calculation of the tenth allocated to the poor and the needy, the maximum upper range is taken.
- In comparable trading and business investment activities, financial costs reduce profit rates. No financial costs (interest) are deductible here.
- Although in the Mudarabah, only ½ the profit was due to the money owner, he is responsible for the loss of all the profit, as he did not invest the money and kept it idle thus losing all its potential growth.
- Caravan trading was the main activity at the time of the Prophet ﷺ, with the two journeys each year, 25% was achievable if not more.
Zakat on Grazing Livestock: زكاة السوائم
For the zakah on grazing cattle, in the early years after Hijra, we assume the new religion needed to explain al zakat amounts to be taken from their grazing livestock (Camels, cows, goats, sheep,..). Either take the tenth of the growth if it could be easily determined, or make an approximation of such tenth.
The growth is not only the newly born, if it is, it could have been easy to determine the growth, you count the herd at the start of the year and count them again at the end of the year.
But this is not all. Growth is also the ageing of the herd (value of camels changes accoding to age, بنت مخاض، بنت لبون، حقة، جذعة، ..وهكذا), counting will not be enough then, we will need to list age of each one at the start of the year and at its end. Then there are the milk, the wool, the ghee and the other benefits, (all of which represent an income that forms part of the growth).
The new religion simplified the amounts due under this charity, not to trouble the early Muslims and to make it easy for them, it provided them with simple numbers taken from the total of the capital and the growth, which is presented in al zakat table on what is due from Camels, Cows & Sheep.
Even today, with all our advanced methods, computers and calculating tools, we will find it extremely difficult to accurately calculate such growth, because the growth includes yields such as milk, wool, ghee, meat, skin in addition to newly born and ageing. On the other hand, there are the dying and the slaughtered for its meat. All these are variables difficult to keep track of or to measure, the time zakat is a charity meant for simplifying not adding burden on people. If it was difficult to calculate, such exercise will be costly and consume from al zakat value. Being only a small proportion of the total does not justify such complications. Therefore it is practical and wise to be imposed in the form of a table which is easy to understand and apply. But this should not be understood as a zakah on the capital, because it is zakat on the growth, but calculated in simple tables defining what is to be taken annually from the herd, so everyone can easily apply it.
Further analysis of the said tables is shown at the end of this presentation in Appendix A & B and in the Arabic language article on the website.
The Prophet’s ﷺ Ahadeeth:
“مَنْ وَلِىَ يَتِيمًا فَلْيَتَّجِرْ لَهُ وَلاَ يَتْرُكْهُ حَتَّى تَأْكُلَهُ الصَّدَقَةُ”
“Whoever is entrusted with money of an orphan should trade with it and should not leave it sitting to be consumed by Zakah” (Al Tirmidhi)
The meaning here is that the trustee shall not keep the money idle, because if it was left idle, he will have to pay zakah every year from the capital, which will use up the money, (if kept from investing the capital will go down by fifth after 10 years and by almost 40% after 20 years), and this will result in a great loss to the orphans and harm to the national economy. On the other hand, if the trustee invested the money and made a profit, he will pay zakat from the profit and the capital will stay intact.
“ما نقص مال من صدقة” “Charity does not decrease money”
Here, is another confirmation that zakah is taken from growth and not from capital, that is why zakah will never cause the capital to decrease. Zakah is only taken from the capital when the owner fails to invest it. Accordingly, it is not al zakah that reduced the money, but the failure of the owner to invest it, is what caused its dilapidation.
From the above, it is reasonable to propose that Zakat is an obligatory charity levied on net growth. 10% of net profit; applicable on all types of money and to all fields of investment activities. Zakah shall be taken as and when such profit occurs (but after deducting all costs and the safe return of the initial capital). Except for zakah on grazing cattle and money kept from investment for one full year, these will follow the currently applicable rules.
We must draw the reader’s attention, that:
- This research and its proposed conclusion, is published herein with the view to putting it out to the jurists and scholars for review and discussion.
- This research is an Ijtihad and it is still in the study phase. It’s conclusion shall not be followed or implemented until it is reviewed, agreed and authorized by the scholars, and until it is issued as a clear Fatwa by an accepted and acknowledged Muslim Authority.
- Until then Muslims shall continue following the currently known rules of Zakat in accordance with the accepted views of the majority of the early and contemporary Scholars.
- Further scholars and peer review should be conducted.
Further reading in the next pages:
Appendix A zakat on agricultural produce
Appendix B Zakat on Grazing Cattle
Appendix A:
We note that al zakat on agricultural produce is one-tenth of the net after deducting the expenses, and al zakat collector at the time of the Prophet ﷺ used to leave a third or less when estimating the crop. That third could have been left because of several reasons (other than lifting the water from a well and other costs which were accounted for in the half of the tenth), such reasons include:
- In the case of fruits, it is known that many will be lost before harvest due to fruits falling to the ground and birds eating some. Al Malikiah estimated this as a third of the crop.
- It is common that on the day of the harvest, some are given to the poor who attend that day.
Leaving the third should not affect the portion allocated to Zakat, as it is still one-tenth of the net crop received by the owner at harvest.
Appendix B:
As of the Grazing Cattle, we find Al Awqas, which is the brackets or bands where the percentage taken will vary between the top and bottom of the band,
in Camels it is between 2.5% & 1.50 then the difference is reduced gradually as the number of camels goes up, till it reaches 2.1% for the big numbers of camels.
In Sheep, the percentage starts at 2.5% which only applies to the lowest number of 40 sheep and is gradually reduced till it reaches just above 1% for a large number of sheep.
That can be explained by the following reason:
- The large numbers of herds are usually owned by the heads of the tribes and the rich, who are obliged to give charity to the poor and be generous to visitors and travellers passing by. Arabs hate to slaughter their camels and more likely the offering will be from the sheep.
- Dr Qaradawy said in ‘Fiqh Al Zakah’ that for sheep, infants (which are many in sheep herds) are counted (over forty) are counted by al zakat collector, but are not accepted or taken as Zakat.
- Sheep are not useful for any work. Unlike camels and cows which their usfulness value is part of and added to the growrh.
- The cost of keeping large herds of sheep may be more than that of other animals.
- The reduced rate of zakat when the herd is larger in numbers encourages owning large herds.
For these reasons, and probably others, for the large herds of sheep, the herd which reaches hundred and above, it is approximated that its annual net growth after cost and charities, is around ten per cent of the original herd plus the growth[17], thus the collector will take 10% of the 10%, that will explain the one sheep from every hundred.
[1] Published by Scientific Publishing Centre, King Abdulaziz University, Jeddah, Saudi Arabia
[2] Professor and scholar. Islamic Research. Received many Awards. His book Fiqh Al Zakat is the most comprehensive reference book on Al Zakat.
[3] Professor, Islamic Studies, and Banking. Senior Research Economist: Islamic Research and Training Institute (IRTI) of the Islamic Development Bank (IDB). Writer: Several books on: Awqaf, Zakah, Islamic finance and banking and other areas of Islamic economics.
[4] الأستاذ المرحوم الإمام الأكبر الشيخ محمود شلتوت (تولى مشيخة الأزهر سنة 1958م) في كتابه “الإسلام عقيدة وشريعة” (الإسلام عقيدة وشريعة ص109 – ط . دار القلم بمصر)
[5] ولقد عانيتُ بنفسي من اختلاف المذاهب فيما بينها في هذا الأمر، واختلاف الأقوال والطرائق داخل كل مذهب، واختلاف التصحيحات والترجيحات لكل منها، ووجدت عشرات من المسائل وعشرات من التفريعات عليها، تتعلق بما يُستفاد من المال، وأقسامه وأنواعه، هل يُضم إلى ما عنده أو لا يُضم، أم يُضم البعض دون البعض، هل يُضم في النصاب أم في الحَوْل أم كليهما؟ تذكر بحوث حول هذا الأمر في زكاة الأنعام، وفى زكاة النقود، وفي زكاة عروض التجارة، وفي فروع أخر ؛ مما جعلني أستبعد أن تأتي الشريعة السمحة الميسرة التي تخاطب عموم الناس، بمثل هذه التفريعات المعقدة الصعبة في فريضة عامة يُكلَّف بها جمهور الأمة.
[6] also written Zakah
[7] {What you have earned}: Al-Qortubi said: “Earning comes through physical hard work, and that is wages, and the rent (which rules will be mentioned later), or through contracting in a trade.” And in {And what We have extracted for you from the earth} “meaning plants, minerals and ores, and these are three forms covered in the verse”
(ما كسبتم) : يقول القرطبي:” الْكَسْب يَكُون بِتَعَبِ بَدَن وَهِيَ الْإِجَارَة وَسَيَأْتِي حُكْمهَا , أَوْ مُقَاوَلَة فِي تِجَارَة وَهُوَ الْبَيْع وَسَيَأْتِي بَيَانه” ويقول في (وَمِمَّا أَخْرَجْنَا لَكُمْ مِنَ الْأَرْضِ) “يَعْنِي النَّبَات وَالْمَعَادِن وَالرِّكَاز , وَهَذِهِ أَبْوَاب ثَلَاثَة تَضَمَّنَتْهَا هَذِهِ الْآيَة”
[8] Zakat is also taken from what Allah bring forth from the ground such as oil and metal ores and other mined materials (Al Rikaz) taken at one fifth (20%). This part of Al Zakat on Al Rikaz is agreed upon by all schools and scholars, there is no differences here.
[9] يقول ابن رشد فى المقدمات ص 201 : “إن الزكاة سميت بذلك لأنها لا تؤخذ إلا من الأموال التى يبتغى بها النماء لا من العروض المقتناه، فالزكاة فى اللغة النماء وسميت بالنماء لتعلقها به”
[10] ‘Interpretation of the Facts, Explaining the Treasures in the Details’ ويقول الزيلعى صاحب تبين الحقائق شرح كنز الدقائق ص 253 عن سبب اشتراط مضى الحول : “لكون الواجب جزءا من الفضل لا من رأس المال لقوله تعالى {ويسئلونك ماذا ينفقون قل العفو} أى الفضل والنمو وإنما يتحقق فى الحول غالبا فأقيم السبب الظاهر وهو الحول مقام المسبب وهو النمو
[11] More known as zakat on the 200 Dirhams (Silver coins) and on the 20 Dinars (Gold coins)
[12] Al Mudarabah is the transaction where a capital owner who have no experience or ability to invest his money, give it to a company or an experienced business man (Mudareb) to invest it for him, and the share the profit after returning the capital
[13] Similar profit ربح المثل
[14] See Mudarabah conditions of contract in the Mudarabah section of this website and in Al Mudarabah Book (in Arabic Languge).
[15] قال النبي ﷺ: “لا زكاة في مال حتى يحول عليه الحول” [(17)] أخرجه ابن ماجه
[16] Being ten per cent of the estimated similar profit.
[17] (That means that annual net growth in large herds is 11%)