The Zakah of Trade Goods

His statement, “trade goods”: this is the plural of ʿaraḍ or ʿarḍ, with the rāʾ unvowelled. It refers to property prepared for trade. It is so called because it does not remain: it is offered for sale and then passes away. The merchant does not seek this particular commodity itself; rather, he seeks its profit. For this reason, we have made zakah due on its value, not on the item itself.

Thus, trade goods are everything prepared for trade, whatever their type or category.

They are the broadest and most comprehensive category of zakatable wealth, for they include real estate, fabrics, vessels, livestock, and everything else.

Zakah on trade goods is obligatory according to the majority of scholars. This is the sound and decisive view. The evidence for it is as follows:

1. They fall under the general meaning of Allah’s saying:

“And in their wealth there was a rightful share for the beggar and the deprived.” [Quran 51:19]

And the Prophet ﷺ said to Muʿādh ibn Jabal, when he sent him to Yemen: “Teach them that Allah has made charity obligatory upon them in their wealth, to be taken from their rich and returned to their poor.” (1)

He said, “in their wealth,” and there is no doubt that trade goods are wealth.