Emirates NBD PJSC, a prominent financial institution in the United Arab Emirates, has recently announced the methods for calculating Zakat on its shares for the year ended 31 December 2025. This announcement is crucial for shareholders who adhere to Islamic financial principles, as Zakat is a mandatory charitable contribution in Islam.

The bank has outlined two distinct methods for Zakat calculation, catering to different investment strategies. The first method applies to shares purchased for trading purposes, where the intention is to sell them when the market value rises. In this scenario, the Zakat pool per share is calculated by adding the share's quoted value (AED 27.85) to the cash dividends per share for the year (AED 1.00), resulting in a Zakat pool of AED 28.85. The Zakat per share is then determined by multiplying the Zakat pool by 2.5775%, which equals AED 0.7436. After deducting AED 0.0131, which accounts for Zakat on reserves and retained earnings paid by the bank, the net Zakat per share is AED 0.7305.

The second method is tailored for shares purchased for acquisition purposes, where the investor aims to benefit from the annual returns. In this case, the Zakat is calculated as 10% of the total dividends for the year, which equates to AED 0.1 per share.

This structured approach to Zakat calculation provides shareholders with flexibility and transparency, reinforcing Emirates NBD's commitment to aligning with Islamic financial principles. The bank's proactive stance in clarifying these calculations demonstrates its dedication to maintaining trust and confidence among its stakeholders.

Looking ahead, the future of Emirates NBD appears promising. The bank's adherence to Islamic financial obligations, coupled with its robust financial services, positions it well for continued growth in the competitive UAE banking sector. Investors may find the bank's shares attractive, given its strong market presence and commitment to ethical financial practices.

Considering the bank's strategic initiatives and alignment with Islamic principles, investors might consider a hold position on Emirates NBD shares. This stance allows them to benefit from potential future growth and dividends while adhering to Zakat obligations.