Zakat on a Murabaha deal – Example

1) Client will purchase equipment from financier once financier has purchased and assumed the risk thereof.

2) Client will purchase goods on the basis of a MURABAHA sale with the purchase price being paid as per below.

3) The selling price of the equipment sold by the financier to the client will be cost of the goods (124,000-00) plus a 50% profit margin payable in one lump sump at the end of 5years from the date the financier paid the supplier of the equipment.

A: الجواب حامدا ومصليا ومسلما ومنه الصدق والصواب

In the situation mentioned in the question, the sale price of the equipment is £186,000 and each heir will be required to calculate zakat for his/her own zakat anniversary for his/her own proportionate share of this sale price. Then, on each heir’s second zakat anniversary, each heir will calculate zakat on his/her share of the sale price less the zakat liable upon him/her the previous year. Then, on each heir’s third zakat anniversary, each heir will callculate zakat on his/her share of the sale price less the zakat liable upon him/her the previous two years. This will continue in the same manner until the price is received after five years.

And Allah knows best.
Mufti Mohammed Zubair Butt
Chair, Al-Qalam Sharia Scholars Panel