Dar al-Ifta Explains the Wisdom Behind Using 21-Carat Gold for Zakat Calculation
Egypt’s Dar al-Ifta clarified that the use of 21-carat gold to determine the zakat threshold reflects both traditional practice and Islamic legal principles aimed at balancing fairness between the rich and the poor.
Dar al-Ifta Egypt has responded to a common question regarding why the zakat threshold (nisab) is calculated using the price of 21-carat gold rather than 18 or 24 carats.
In an official statement, the authority explained that choosing 21-carat gold for zakat calculation aligns with established Islamic jurisprudence and societal customs, as it best represents the type of gold most people use for savings and transactions.
Dar al-Ifta emphasized that this standard ensures justice and balance—it prevents hardship for those with modest wealth while safeguarding the rights of the poor, in line with the objectives of Islamic law (Maqasid al-Sharia) to promote social equity.
Historically, the zakat threshold was measured by the gold dinar, which was minted from pure gold with a known weight. Over time, with changes in monetary systems, 21-carat gold became the most comparable standard in terms of purity and value.
The institution further explained that pure gold is naturally soft and requires blending with other metals such as copper, silver, or palladium for durability and design flexibility. The purity level (carat) varies depending on how much of these metals are mixed.
Dar al-Ifta concluded that using 21-carat gold is a well-founded and practical ijtihad (juridical reasoning) that harmonizes religious authenticity with economic reality, making zakat calculations both fair and applicable.
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