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Islamic Finance




Zakat al-Mutarabbis


Arabic (زكاة المتربص) for zakah/ zakat that is to be paid by an expectant trader (in Arabic spelling, al-mutrabbis)- i.e., a trader who anticipates receiving higher prices for his assets (property, commodities, etc.) in the future and therefore keeps them held in his possession/ stores in anticipation of price increase. Al-mutrabbis usually buys and holds assets, often for months or years, hoping higher resale prices in the future. This trader is not liable to pay zakah/ zakat on such assets as long as he keeps them held and doesn’t dispose thereof. However, zakah/ zakat becomes payable only when these assets are sold and for the year in which sale takes place.



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