Shariah Analysis of Zakat on Shares in Modern Capital Markets

Abstract

This study critically examines the issue of Zakat on shares (zakāt al-ashum) as a contemporary jurisprudential and economic challenge arising from the expansion of modern capital markets and the proliferation of joint-stock companies (sharikāt musāhamah). It explores the Shariah adaptation of shares, the fiqhī ruling on their transactions, and the mechanisms of Zakat accountability within the framework of Islamic commercial law and finance. The study aims to define the concept of the share (ḥiṣṣah), elucidate its economic and legal characterization, and distinguish between the nominal value (al-qīmah al-ismīyah) and the market price (al-sūqīyah), highlighting their implications for Zakat valuation (taqwīm al-zakāh).

The study analyzes the Shariah rulings on the buying and selling of shares, with reference to the objectives of Shariah (maqāṣid al-sharīʿah) and the principles of Islamic financial jurisprudence (fiqh al-muʿāmalāt).

A central focus is placed on the obligation of Zakat on shares, examining its existence (wujūb), quantum (miqdār), and the responsible party (al-mukallaf). The study presents a comparative analysis of the positions of contemporary jurists regarding whether Zakat is incumbent upon the company as a juridical person (shakhsiyyah iʿtibāriyya) with independent financial liability, or upon the shareholders as the real owners of capital (ḥaqīqat al-milk).

The study emphasizes the necessity of assessing the valuation date (hawl al-hul) and applying fair market value for accurate computation, in order to fulfill the objectives of Zakat in promoting social justice, economic development, and wealth redistribution, consistent with the overarching principles of Fiqh and Uṣūl al-Fiqh governing financial transactions.