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How do I calculate zakah on investments that change in value, including a diamond investment?

Answered as per Hanafi Fiqh by Muftisays.com
Assalam Alaiykum,

Could someone please help me with my zakah problem, I cannot seem to get any useful help at the moment and I am under great pressure.

I would like to know if you calculate zakah on investment or on current value of an investment.

Example: I have some shares and their values change on a daily basis, also I bought a diamond for ?1,500.00 as an investment but I do not know its current value.

Could someone please let me know the correct way in how I calculate zakah on these two examples. Last year I calculated the shares on their value using the FT newspaper and calculated the diamond on the amount I paid for it which is ?1,500.00.

I was also told that the diamond falls under Khums by Islamic Centre of England which is 20% of the value instead of 2.5% which is zakah. Is this correct or does it only apply to shia sources?

Also would I need to re-value the diamond, if so, who will do this for me.

Your swift reply would be most appreciated as my year-end is in two weeks.

Thank you



Bismihi Ta’ala

The Zakaah on shares will be calculated according to its current value upon the elapsment of lunar year (the time Zakaah is due), not the value at the time of purchasement.

There is no Zakaah on diamonds or any other precious stones, unless they are for trading purposes. If they are for personal use, then there is no Zakaah on them. As for gold and silver, there is Zakaah on both of them, whether they are for personal or trading purposes.

And Allah knows best.

Mufti Yaseen Shaikh

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This answer was collected from MuftiSays.com, based in London (UK). It is one of the fruits of Darul Uloom London. Many ‘ulama are involved in answering the Q&A on the site, including: Shaikul Hadeeth Mufti Umar Farooq Sahib, Mufti Saifur Rahman Sahib, Mufti Abdullah Patel Sahib, Maulana Qamruz Zaman Sahib, Mufti Abu Bakr Karolia Sahib.

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