Hawl

Hawl (also transliterated as Haul) refers to the passage of a complete Islamic lunar year (approximately 354 days) during which wealth remains continuously at or above the Nisab threshold, thereby triggering the obligation to pay Zakat. The Hawl condition is one of the primary criteria for Zakat liability alongside Nisab (minimum wealth threshold), full ownership, and the wealth being of a zakatable category. For trade goods, monetary assets, gold, and silver, the Hawl must pass before Zakat becomes due. However, Hawl does not apply to agricultural produce (Zakat al-Zuru'), minerals (Rikaz), or found treasure — these are subject to Zakat immediately upon acquisition or harvest. AAOIFI Shariah Standard No. 35 specifies that if wealth falls below Nisab at any point during the Hawl, the year-count resets when the threshold is regained. For companies and investment funds, AAOIFI provides guidance on calculating the Hawl start date based on the fiscal year or the date assets first exceeded Nisab. The IOF Zakat engine tracks Hawl dates per asset category per account holder, automatically detects Nisab breaches that reset the Hawl counter, and triggers Zakat computation and notification workflows when the annual cycle completes.