Zakaat on Al-Mabroor Investment Scheme




1) How is zakaat to be calculated on the Al Mabroor Buffalo Investment?


2) How much zakaat should I pay for the Mandela R5 coins. I paid a few thousand for them because of their rarity. The coins are still circulation coins. That is, if I go into a shop, they would accept it as a R5(the legal tender value).  There is no gold or silver in the coins.

The only difference is that they have been graded by a coin company(to show what condition the coin is in).




In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

There are three issues:

1. Generally, in the Al-Mabroor Mudarabah Investment Scheme , one invests in the scheme with the intention of purchasing buffaloes for breeding purposes. As such, there is no Zakaat payable on the buffalo. However, if there is cash on hand for administrative expenses and other expenses, then the Zakaat will be due on the cash on hand on a pro-rata basis on the investors based on their personal financial situation. For example, if the fund has ten million rands. Eight million rands was used to purchase a buffalo. Two million rand in cash on hand is reserved for expenses. There will be Zakaat on the two million rand on a pro-rata basis.

2. However, if one invests in the Al-Mabroor Buffalo Scheme with the intention of purchasing buffalo for resale and capital gain., then they will be treated as merchandise.  Hence, the laws of zakāt on merchandise will be applicable and not the laws pertaining to zakāt on animals[1]

Zakāt is obligatory on the current market value on the day of calculating one’s zakāt.  For example, a person invested R3 million in the Al Mabroor Buffalo Scheme.  On the day of calculating one’s zakāt, the market value of one’s investment is R 3,500,000.  If one’s liabilities do not exceed one’s assets, then such a person will be obligated to pay zakāt of 2.5% of R 3,500,000 plus the value of other zakātable assets.[2]

3. In principle, Zakaat is Wajib on legal tender/legal currency. Therefore, Zakaat will be wajib on the actual R5 Mandela Coin and not the value of the Mandela Coin since Mandela Coins are classified as legal tender. For example, one owns 1000 R5 Mandela Coins with the value of each coin being R1000.00. Such a person will be obligated to pay Zakaat on R5000.00 and not on R 100000.00.

And Allah Ta’āla Knows Best                                       

Ismail Desai,
Student Darul Iftaa
Durban, South Africa

Checked and Approved by,
Mufti Ebrahim Desai.

1 بَابُ السَّائِمَةِ (هِيَ) الرَّاعِيَةُ، وَشَرْعًا (الْمُكْتَفِيَةُ بِالرَّعْيِ) الْمُبَاحِ، ذَكَرَهُ الشُّمُنِّيُّ (فِي أَكْثَرِ الْعَامِ لِقَصْدِ الدُّرِّ وَالنَّسْلِ) ذَكَرَهُ الزَّيْلَعِيُّ، وَزَادَ فِي الْمُحِيطِ (وَالزِّيَادَةِ وَالسِّمَنِ) لِيَعُمَّ الذُّكُورَ فَقَطْ، لَكِنْ فِي الْبَدَائِعِ لَوْ أَسَامَهَا لِلَّحْمِ فَلَا زَكَاةَ فِيهَا كَمَا لَوْ أَسَامَهَا لِلْحَمْلِ وَالرُّكُوبِ وَلَوْ لِلتِّجَارَةِ فَفِيهَا زَكَاةُ التِّجَارَةِ (الدر المختار من حاشية ابن عابدين ج 2 ص 276 أيج أيم سعيد)

2أحسن الفتاوى ج 4 ص 287 أيج أيم سعيد

أحسن الفتاوى ج 4 ص 284 أيج أيم سعيد

يقوِّم التاجر العروض أو البضائع التجارية في آخر كل عام بحسب سعرها في وقت إخراج الزكاة، لا بحسب سعر شرائها، ويخرج الزكاة المطلوبة (الفقه الإسلامي وأدلته ج 3 ص 1871 دار الفكر)


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