In the name of Allah the Beneficent the Merciful
Peace, blessings and mercy of Allah be upon you.

A year ago, I subscribed in Riyadh Fund No. 2, with SR 25.000, and after one year I lost and the money decreased from the capital, and I paid Zakat for the remaining money in the Fund, and after one month and my loss from the capital is still hovering in the Fund, I withdrew SR 13.000. Should I pay Zakat of 30% on this money? For your information, until now the money in the Fund did not reach the level of its capital. Is paying Zakat for the money in the Investment Fund due only to profits, or to the total of the invested money? Please, kindly counsel us. Jazakumu Allahu Khairan.

N. B.: Who are the most deserving people to take the Zakat dues? Please, kindly define them for importance.

In the name of Allah the Beneficent the Merciful
Peace, blessings and mercy of Allah be upon you.

Praise be to Allah, prayers and peace be upon His Prophet Muhammad, his family members, companions and followers to the Day of Judgment.

If this Investment Fund deals in industrial transactions, the Zakat is due only on profits, if you know that the capital is invested in buying machinery and industrial equipment which remain as fixed assets. But if it is invested in commerce transactions (like importing and exporting, for example), the Zakat is due on the total sum of the money at the end of the year (the capital + the profit and – the loss), if it reaches the quorum. Regardless of what you have deposited or withdrawn during the financial year, the Zakat is due on the net remaining money after discounting the personal expenses and the due debts, with the rate of 2.5%, and not of 30%, as you have mentioned in your question.

The most deserving people of your Zakat money are your relatives (not of stems and branches), if they deserve it, and if they are pious and righteous. Allah knows best.