Zakaah On Investments With Old Mutual

QUESTION:

A person has an investment in Old Mutual. Does he pay Zakaah on the full amount that is in the portfolio, or only what was invested in the last year?

ANSWER:

Firstly, our Darul Ifta is not in favour of investing in Old Mutual as a majority of the income of conventional banks are obtained from interest.

Secondly, Zakaah on investments will depend on the nature of the investment. For example, if the money is invested in properties, then there will be no Zakaah on the principle amount as there is no Zakaah on buildings. However, one will discharge Zakaah on the rental income accrued from the properties.

As such, we do not have any information as to where and what type of investments Old Mutual invests their money in, making it difficult for us to assist to you. However, you may enquire directly with Old Mutual and check up with their Shari’ah Advisory Board regarding your Zakaah.

يَـٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا لَا تَأْكُلُوا ٱلرِّبَوٰٓا أَضْعَـٰفًا مُّضَـٰعَفَةً ۖ وَٱتَّقُوا ٱللَّهَ لَعَلَّكُمْ تُفْلِحُونَ

“O you who believe, do not consume interest, doubled and multiplied, but fear Allah that you may be successful.” (Surah Al-Imran 130)

حَدَّثَنَا قُتَيْبَةُ، حَدَّثَنَا أَبُو عَوَانَةَ، عَنْ سِمَاكِ بْنِ حَرْبٍ، عَنْ عَبْدِ الرَّحْمَنِ بْنِ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ، عَنِ ابْنِ مَسْعُودٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَيْهِ وَكَاتِبَهُ
.
‏”The Messenger of Allah Sallallahu Alaihi Wasallam cursed the one who consumed Riba, and the one who charged it, those who witnessed it, and the one who recorded it.” (Tirmidhi 1206)

ALLAH TA’ALA ALONE IN HIS INFINITE KNOWLEDGE KNOWS BEST!

ANSWERED BY:

Mufti Abdul Kader Fazlani

Date: 28 Dhul Hijjah 1447 / 16 June 2026

CHECKED AND APPROVED BY:

Mufti Yacoob Vally Saheb