On Tuesday, 8 April 2025, the Zakat Academy (AZKA), PPZ-MAIWP, held an official kick-off session with the Centre of Excellence for Islamic Social Finance (CoEISF) under the ISRA Institute at INCEIF University. The session marked the commencement of a groundbreaking research project entitled “Zakat on Sukuk: A Fiqh Analysis and Calculation Methodology”.

About the Research

This collaborative study, led by Prof. Dr. Amir Shaharuddin and his research team, aims to provide a comprehensive Shariah-based analysis of zakat obligations related to sukuk instruments in the Malaysian Islamic capital market. Sukuk, being a rapidly expanding investment tool, presents complex fiqh questions regarding:

• The obligation of zakat across various sukuk structures (Ijarah, Mudarabah, Murabahah, Istisna’, etc.)

• Who bears the obligation – the investor, the sukuk issuer, or both?

• What is the correct method to calculate zakat on sukuk returns, principals, or underlying assets?

Key Objectives

The project sets out to:

• Examine the diversity of sukuk types available in Malaysia

• Assess Shariah-compliant frameworks for zakat applicability

• Develop a practical and standardized zakat calculation model

• Identify responsible parties for zakat compliance across the sukuk lifecycle

• Propose official policy recommendations for institutions such as PPZ-MAIWP

Methodology and Expected Impact

The research employs both qualitative and quantitative methods, including field studies, expert interviews, Shariah analysis, and focus group discussions. The findings are expected to bridge theoretical fiqh with contemporary financial practices and provide:

• A full-fledged Shariah research paper

• A practical zakat calculation framework tailored to different sukuk types

• Strategic recommendations for better zakat governance within Islamic finance

A Step Towards Equitable Wealth Distribution

This initiative aligns with Malaysia’s vision to strengthen Islamic social finance as a tool for equitable wealth distribution. By enhancing zakat frameworks for sophisticated instruments like sukuk, the project underscores the synergy between financial innovation and religious obligation.