Zakat and business activities

Zakat is mandatory for business activities, including:

  • Business activity of all forms involving the selling goods and services.
  • Investment activity of all forms, including investment in bonds whether long-term or short-term, or issued by the private sector or the government, as well as investment in goods, services and commercial contributions.
  •  Industrial activity of all forms, including factories, laboratories and workshops.
  • Service activities of all forms, including financial services, free professions, crafts, brokerage and agencies.
  • Financial activities of all forms, including banking and insurance activities.

Zakat collection is subject to the following categories:

  • Saudi natural persons residing in the Kingdom and those treated as nationals of the Gulf Cooperation Council States.
  • Saudi companies residing in the Kingdom on the shares of Saudi nationals and those treated by GCC citizens and shares of Saudi governmental bodies.

Zakat Regulations for Royal Decree No. 40

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