Zakat Computation in the UAE: Nisab, Eligibility, and Accurate Computation
The 5 Pillar Zakat is a core Islamic obligation designed to purify wealth and support social balance. For Muslims in the UAE, understanding Islamic nisab thresholds, eligible assets, recipient categories, and correct calculation methods is essential—especially for traders and businesses dealing in cash and commodities such as metal scrap.
This guide explains how to compute Zakat sadaqah correctly and how to use our Calculator for accurate Zakat computation.
Niat Zakat Fitrah
نَوَيْتُ أَنْ أُخْرِجَ زَكَاةَ أَمْوَالِي فَرْضًا ِللهِ تَعَالَى
Doa Zakat Fitrah
اللّهُمَّ اجعلها زكاةً مقبولةً، وطهِّر بها أموالنا، وبارك لنا فيما أبقيت، وتقبّلها منّا يا ربَّ العالمين، واجعلها سببًا لرضاك، وستراً لذنوبنا، وفرجًا لهمومنا، إنك أنت السميع العليم.
Nisab Threshold for Zakat Computation
Nisab for Zakat computation is the minimum amount of wealth a Muslim must own before it becomes due. It is measured using the market value of gold or silver in the UAE.
Zakat Nisab in Islam
- Gold: 87.48 grams
- Silver: 612.36 grams
If a person’s total eligible assets equal or exceed the nisab and remain in their possession for one lunar year, zakat computation becomes due.
Assets Included in Calculation
Eligible assets typically include:
- Cash in hand and bank balances (AED or foreign currency)
- Business cash flow
- Trade inventory (including metal scrap stock at current market value)
- Receivables expected to be recovered
- Gold and silver holdings
Allowable Deductions
- Immediate payable debts
- Short-term liabilities
Personal-use assets such as residence, vehicles, and household items are excluded.
Applicable Rate on Cash & Trade Assets
For liquid assets and trade goods, the applicable rate is:
2.5% of net eligible wealth
Example
If total eligible assets amount to AED 500,000 and liabilities are AED 100,000:
- Net amount: AED 400,000
- Due amount: 2.5% = AED 10,000
👉 For precise results, use our Zakat computation tool, designed for UAE individuals and businesses.
Eligibility to Receive Zakat Fitrah
Zakat must be distributed only to those entitled under Islamic law. These include:
- The poor (Al-Fuqara)
- The needy (Al-Masakin)
- Those in debt
- Travelers in need
- Individuals working to administer zakat
- Those whose hearts are to be reconciled
- Those in bondage
- In the path of Allah
- NGO working for welfare of communities eg WWO, Sindhica reforms society
Distribution must strictly follow these categories.
Livestock Rules
Zakat computation on animals applies only when they:
- Reach the minimum number (nisab)
- Graze freely for most of the year
- Are kept for milk, breeding, or trade
Sheep & Goats
| Number Owned | Due |
|---|---|
| 40–120 | 1 |
| 121–200 | 2 |
| 201–399 | 3 |
| 400+ | 1 per 100 |
Cattle (Cows/Buffaloes)
| Number Owned | Due |
|---|---|
| 30–39 | 1 one-year calf |
| 40–59 | 1 two-year cow |
| 60 | 2 calves |
| Each +30 | Add 1 calf |
| Each +40 | Add 1 cow |
Camels
| Number Owned | Due |
|---|---|
| 5–9 | 1 sheep |
| 10–14 | 2 sheep |
| 15–19 | 3 sheep |
| 20–24 | 4 sheep |
| 25–35 | 1 one-year camel |
| 36–45 | 1 two-year camel |
| 46–60 | 1 three-year camel |
Zakat Fitrah (Separate Obligation)
Zakat Fitrah is paid per individual before Eid al-Fitr and is separate from wealth-based zakat. It is not calculated on business assets or savings.
Use Our Zakat Calculator
Manual calculations can be complex, especially for businesses. Our Zakat Calculator helps you:
- Apply the correct nisab threshold
- Calculate cash and trade inventory accurately
- Deduct liabilities correctly
- Generate instant results in AED
Important Note
Payment of zakat in the UAE is voluntary by law and is fulfilled as a religious obligation under Islamic principles.
Disclaimer
Al Qasr Al Muneer Tr LLC provides this information and any related Zakat Calculator for educational and informational purposes only. The company does not collect, receive, manage, promote, or endorse the payment of zakat on behalf of any individual, entity, or authority.
All calculations and explanations are based on general Islamic guidelines and are intended to assist users in understanding nisab thresholds and calculation methods. Users are solely responsible for verifying inputs and fulfilling their religious obligations according to their own beliefs or through consultation with qualified scholars.
Payment of zakat in the UAE is voluntary by law and remains a personal religious responsibility. Al Qasr Al Muneer Tr LLC accepts no liability for decisions made using this information.