Allah ta`ala has proclaimed in Quran

And they who are observant for Zakat

(Surat Al-Mu`minun Ayah 4)

Rasulullah (sallallahu`alaihi wasallam) said

Our wealth will not decrease if we give in charity

Abdullah ibn Mas`ud (radiyallahu `anhu) said

You were commanded to establish salat and pay Zakat, and whoever
does not pay Zakat; has no salat

Introduction
Aayan Leasing & Investment Company is mostly interested and keen to facilitate

the process of computing the Zakat of whomever desirable from shareholders, partners
or investors in the Parent Company, its subsidiaries and associates, portfolios and funds
operated by the company. Therefore, Aayan has decided to present this Zakat Guide for
the fiscal year ended on December 31, 2006 by virtue of the decision issued by the Board
of Fatwa and Sharia Control. This decision proclaimed that the company shall calculate
Zakat at the end of each fiscal year, and the shareholder shall be informed to pay all Zakkatable amounts as representative to the number of shares he owns and his Zakat year.
Aayan takes this opportunity to extend its appreciation and gratitude for Shura for Shariia Consultation Company which has computed, upon the request of Aayan, the Zakat on
the company, as well as computing the Zakat of all its subsidiaries, associates, portfolios
and funds operated by Aayan.
We glorify Allah the Almighty and seek that Allah ta`ala accepts from us, for he is the AllHearing, the All-Knowing and to bless every believer who pays Sadaqa for the needy.

August 2007

General Controls & Guidelines

1. Zakat has been calculated in conformity with Sharia rules set forth in the Manual
of Guidelines on the computation of companies Zakat issued by Zakat House in
the state of Kuwait, under Act no. 13/4/2006 issued by the Board of Fatwa and
Sharia Control of Aayan Leasing & Investment Co.
2- The calculation of Zakat for all companies, funds and portfolios contained in this
guide has been performed based on the balance sheet for the period ended on Deci
cember 31, 2006 and the other clarifications enclosed with the balance sheet.
3- Meetings have been held with specialized employees in each company, portfolio
or fund for the purpose of obtaining supplemental information for the balance
sheet (1) and any relevant information on the current market values in respect of
certain terms described in the balance sheet.
4- Zakat calculation method described in this guide is for the use of the investment
shareholder (who owns for long-term investment). While the speculative sharehi
holder (who owns shares for the purpose of trading) pays Zakat on his shares in
a way similar to Zakat on trade offers, according to its market value on the day it
became payable.
5- The rate of Zakat has increased from 2.5% to 2.577% due to the difference in the
number of days between a lunar year and solar (Gregorian) year, whereas the balai
ance sheet has been prepared based on the Gregorian year.
6- First, we have derived the Zakat pool for each entity (company / portfolio / fund);
then derived the Zakat pool amount, and then divided the result (Zakat amount) by
the number of shares, ratios or units for each entity, to establish the Zakat amount
for each share, ratio or unit in the entity. (2)
7- Zakat has not been calculated for certain portfolios that adhered by the law of its
jurisdiction to pay Zakat in such countries,(3) and the management of the portfoli
lios shall pay the Zakat of these portfolios.

1-

except for Al-Masa Company, its management has computed with the knowledge of its Sharia Control Management
who reported to us on this matter.
2- The amount of Zakat has not been divided by the shares of portfolios, pls. refer to Article 9 of these controls.
3- i.e. Sudan

8- As for the Holding Company or Parent Company which owns directly or indirectly
over than 50% of equity in its subsidiary companies, the calculation of Zakat for
the company/subsidiary companies have been started for the purpose of indepi
pendence. Then, Zakat on Holding Company/Parent Company has been added
to the amount of Zakat on the same Holding Company/Parent Company itself, if
applicable.
9- With regard to the investment portfolios operated by Aayan as set forth in this
guide, the total amount of Zakat on the portfolio cash has been calculated, and the
participant should pay the Zakat as representative to what he owns in the portfolio
(pro rata). (1)
10- Zakat for all companies, portfolios and funds has been calculated based on Kuwi
waiti Dinar as same as the currency of the balance sheet, except for Egypts portfi
folio in (Egyptian Pound) and Dijla & Furat Bank for Development & Investment
in (Iraqi Dinar). The party who pays the Zakat shall transfer the amount due on
him to a corresponding currency when he pays the Zakat in a currency other than
the currency used for calculating Zakat.

1-

the participant to the portfolio could refer to the company as required

Zakat Calculation
1- How to calculate Zakat on Aayan Leasing & Investment Co:
Net Zakat pool which has been derived from the unconsolidated balance sheet of the compi
pany for the period from January 1 to December 31, 2006 accounted for (KD19,627,316).
The amount of Zakat on net Zakat pool of the company for the unconsolidated balance is
(KD505,796).
An amount of (KD1,098,830) has been added to the amount of Zakat on net Zakat pool
for the unconsolidated balance, which represents Zakat of the company on its investments
in subsidiary and associate companies in order that total amount of Zakat on the company
becomes (KD1,604,626).
An amount of (KD799,721) has been deducted from the total amount of Zakat which repri
resents reserves and profits carried forward from the year 2006 and which has been paid by
the company on behalf of the shareholders under a decision issued by The Board of Fatwa
and Sharia Control no. (2/9/2001), together with the approval of the shareholders during the
General Assembly held on 16 /4 / 2007.
The remaining due amount of Zakat after deducting the reserves Zakat is (KD804,905).
The amount of Zakat has been divided by the number of shares in the company, and the resi
sult would be (1.733 fils) which is the amount of Zakat for each share.

2- How a shareholder would calculate Zakat on his shares in the company:

For the purpose of calculating the Zakat, the shareholder should multiply the total Zakat
amount for each share (1.733 fils) by the number of shares he owns in the company, and the
result should be the amount of Zakat payable by him.
i.e. A shareholder owns 250.000 share in Aayan Leasing & Investment Company :
250.000
433250

1.733
1000

=
=

433250
(in fils)
KD433.250

3- Investors Zakat on subsidiary and associate companies:

For the purpose of calculating the Zakat, the a shareholder in any subsidiary or associate
company of Aayan Leasing & Investment Co should multiply the total Zakat amount for
each share for the relevant company by the number of shares he owns in this company,
and the result should be the amount of Zakat payable by him.
4

The following table sets out the Zakat for each share on all subsidiary and associate
companies, noting that the figures recorded are in Fils and its parts,;
Fils for each unit

Company

1.36

Aayan Real Estate

Abyaar for Real Estate Development
Al-Ain Al-Ahliya
Hajer Tower for Real Estate Development
Rawahel Holding

2.1

1.448.540

0.3

2.703

0.3

Mubarrad for Transport

210

National Express

19

Babtain Body Manufacturing

Mubarrad Sudan
Mubarrad Egypt

2.2

Insha`a Holding

25

Bubiyan Aggregate

Bubiyan Ready-Mix

Al-Fadalah United
Building System

Ajial Education

Itqan Holding

Rekab

Budget

Asas

32

A`ayen

2.4424

Sorooh Investment

2.5124

Al Ain Insurance

2.604

Rasameel Structured Finance

Masha`er Services for Omra & Hajj Consortium
Masha`er Real Estate

3.704

Masha`er Nakheel
Al Masaa

1.9

Dnata Kuwait Travel & Tourism

1.3

Imdad for Equipment Rental

0.6

+ )iraqi fils( 18

Dijla & Furat Bank

25.314

Al-Maseel Group

36.5

Fiduciary Soft

2.8526

Aayan Holding

i.e. A shareholder owns 150000 share in Aayan Real Estate Company:

150000
204000

1.36 = 204000 (in fils)

1000 = KD204

4- Investors Zakat on funds:

For the purpose of calculating the Zakat, the investor in any fund operated by Aayan Leasii
ing & Investment Co should multiply the amount of Zakat for each investment unit of the
relevant fund by the number of investment units he owns in the fund, and the result should
be the amount of Zakat payable by him.
The following table sets out the rates of Zakat on each investment unit in all the funds, noting
that the figures recorded are in Fils and its parts.

Fund

Fils for each unit

27

Aayan Real Estate Fund

26.6

Amwal Cash Fund

1.3

Proceeds Fund

i.e. A shareholder owns 10000 investment unit in proceeds fund:

10000
13000

1.3 =

1000

13000 (in fils)

KD13

5- Zakat on investors in portfolios:

For the purpose of calculating the Zakat, the investor in any portfolio operated by Aayan
Leasing & Investment Co should pay the Zakat as representative to what he owns in the
portfolio (pro rata) from the amount of Zakat on cash in the portfolio according to the folli
lowing table.

Zakat Amount

Fund / Portfolio

KD12.025.784

Employees` portfolio

KD905.972.542

Dubai Land Portfolio

KD97.926.000

Sharq Al-Qurain Portfolio

KD30.995.512

Al-Mahboolah Portfolio

EGP201.064.88

Egypt Portfolio

i.e. A shareholder owns 10000 investment unit in proceeds fund:

905.972.542

20%

KD181.194.084