Nisab

Nisab is the minimum threshold of wealth that a Muslim must possess before becoming liable to pay Zakat, the obligatory annual alms-giving. The concept derives from the Sunnah of the Prophet Muhammad (peace be upon him) and has been systematised by classical fuqaha (jurists). Traditionally, Nisab is set at the value of either 87.48 grams of gold (Nisab al-Dhahab) or 612.36 grams of silver (Nisab al-Fidda). Because silver's Nisab yields a lower monetary threshold in contemporary markets, scholars differ on which benchmark to apply: the gold Nisab protects more wealth from Zakat obligation, while the silver Nisab maximises distributional breadth and social welfare — most contemporary Shariah boards favour the silver standard for income Zakat. AAOIFI Shariah Standard No. 35 on Zakah provides detailed computational guidance, including how to calculate Nisab for trade goods, financial assets, agricultural produce, and livestock. The Nisab must be maintained continuously for a full lunar year (Hawl) for Zakat to become due. The IOF platform computes Nisab dynamically based on daily gold and silver spot prices via market data feeds, notifies account holders when their aggregate zakatable assets cross the Nisab threshold, and automates the Zakat calculation and disbursement workflow in accordance with AAOIFI SS-35 parameters.