Hawl
The full lunar year for which qualifying wealth must be held above the nisab before zakat becomes due on it.
Hawl is the passage of one full lunar year over wealth that has reached the nisab, a condition for zakat on money, trade goods and similar assets. IFSB-26 reflects it in describing zakat as due on wealth held for one lunar year. Individuals and institutions track a zakat date for each hawl, and some authorities allow institutions that report on a solar year to adjust the calculation for the difference in length.
Sources
This entry explains a term; it is not a Shariah ruling. Approving a product is for each institution's own Shariah board and regulator.
Related terms
ZakatAn obligatory annual contribution on qualifying wealth above a minimum threshold, paid to specified categories of recipients.NisabThe minimum amount of wealth above which zakat becomes due; for money it is set by reference to gold or silver.Hijri calendarThe Islamic lunar calendar of twelve months, used for religious dates, zakat and, in some markets, official and business dates.Zakat baseThe pool of qualifying wealth on which zakat is calculated, after including zakatable assets and deducting what the method allows.