Zakat on Gold: How to Calculate and Pay in UAE (2025)

Is Zakat Due on All Gold You Own?

Zakat is one of the Five Pillars of Islam — an annual obligatory payment of 2.5% of one's accumulated wealth above the nisab (minimum threshold), held for a full lunar year (hawl). Gold is explicitly included in zakatable wealth in classical Islamic jurisprudence.

However, whether your personal gold jewellery is subject to zakat is a matter of scholarly difference.

The Nisab: Minimum Gold Threshold for Zakat

The nisab for gold is 85 grams of pure (24K) gold. If you own 85 grams or more of gold (or equivalent wealth in other assets) and have held it for one complete lunar year, zakat becomes obligatory.

At current Dubai gold prices (approximately AED 290/gram for 24K as of March 2025), the nisab in monetary terms is approximately AED 24,650.

This means if your total zakatable wealth (gold + cash + trade goods + receivables, minus immediate debts) exceeds approximately AED 24,650, and you have held it for a year, zakat is due.

The Zakat Rate on Gold

The rate is 2.5% of the total gold value held above the nisab (or the total zakatable wealth, of which gold is a component).

Example: You own 200 grams of 22K gold valued at AED 270/gram = AED 54,000.

• Is it above nisab? Yes (AED 54,000 > AED 24,650)
• Has it been held for one lunar year? (Assume yes)
• Zakat due: AED 54,000 × 2.5% = AED 1,350

Zakat on Gold Jewellery: The Scholarly Debate

There is a well-known difference of opinion among Islamic scholars regarding gold jewellery worn regularly by women:

• Majority view (Shafi'i, Maliki, Hanbali schools): Gold jewellery used for personal adornment is exempt from zakat
• Hanafi school: Zakat is due on all gold, regardless of whether it is jewellery or not

Given the Hanafi school's predominance in South Asia (home to a large segment of Dubai's Muslim community), many Dubai residents pay zakat on their jewellery. If you are uncertain, consult your local scholar or fatwa authority (AWQAF UAE).

Valuing Gold for Zakat: Which Price to Use?

Use the current market price of your gold on the day your hawl (lunar year cycle) completes. In Dubai, this means the current DGJG rate for your gold's karat. Check goldratesindubai.com for the daily rate.

For jewellery of mixed karats, value each piece at its respective karat rate and sum the total.

How to Pay Zakat in the UAE

Several official channels exist in the UAE for paying zakat:

• Mohammed bin Rashid Al Maktoum Global Initiatives (MBRGI): Online zakat payment platform accepting UAE residents' zakat
• UAE AWQAF (Islamic Affairs & Charitable Activities): Official zakat collection authority for Dubai — awqaf.gov.ae
• Zakat Fund (Abu Dhabi): For Abu Dhabi residents — zakatfund.gov.ae
• Direct payment to eligible recipients: Zakat can be paid directly to the eight categories of eligible recipients specified in the Quran, including the poor, debtors, and those in bondage

Zakat Calculation Summary

Step	Action
1	Calculate total gold weight (grams) at each karat
2	Apply current DGJG price per karat to get total AED value
3	Add other zakatable assets (cash, business inventory, receivables)
4	Subtract immediate debts and liabilities
5	Check if total exceeds nisab (≈AED 24,650 in March 2025)
6	If yes, and held for one lunar year: pay 2.5% to eligible channels