Zakat is the third pillar of Islam. It is a specified portion of a Muslim’s wealth that is given to those in need. It is the amount given once a year to support specific categories of people. The amount is about 2.5% of total wealth which includes the following asset classes:

• Gold and silver
• Precious metals
• Stocks and shares
• Real estate
• Cash
• Agricultural livestock

These are the most common asset classes for which Zakat is paid from.

The linguistic meaning of zakat is “that which purifies.” It is considered to be a way for Muslims to purify their wealth and income. Similar to how the prayer (salah) purifies a person’s soul, zakat purifies your assets and earns you the pleasure of Allah because your wealth is distributed to those in need.