If I buy a commodity for one dinar and want to sell it for two dinars, is that permissible, or is it riba (usury or interest)?
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Question:
He says: If I buy goods, for example, for one dinar and want to sell them for two dinars, is that permissible, or is it riba (usury or interest)? It is known that some people say if the profit exceeds twenty-five percent, it is haram (forbidden) and riba (usury or interest); others say if the profit exceeds one-third, it is riba (usury or interest); some say there is no profit greater than half; and others say if the profit exceeds the price by half, it is riba (usury or interest). I ask you, Honorable Shaykh, to clarify this matter for us and the amount of lawful profit. May Allah reward you with good.
Answer:
These statements have no basis. Profit is not regulated by a specific limit; rather, it depends on the market. If the profit is high due to rising prices in the market, or low due to falling prices in the market, there is nothing wrong with that. The market determines the increase and decrease of profit, and there is no fixed limit for it. It is not a matter of deception with a fixed limit, but deception and overcharging are forbidden. It is also forbidden to conceal defects in goods and sell them at a high price when they are worth very little, except through overcharging. The buyer... so deception and overcharging are forbidden. However, if the increase in price is due to the rise and fall of the market price, there is nothing wrong with it. Indeed, Allah the Exalted is the One who sets prices, as the Prophet (peace and blessings be upon him) said. There is no fixed limit for profit, except what involves injustice, which is forbidden. If there is deception of the buyer or other types of harm, then this is forbidden. But if the increase and decrease are due to the rise in market prices, it does not rise to a fixed limit.
He says: If I buy goods, for example, for one dinar and want to sell them for two dinars, is that permissible, or is it riba (usury or interest)? It is known that some people say if the profit exceeds twenty-five percent, it is haram (forbidden) and riba (usury or interest); others say if the profit exceeds one-third, it is riba (usury or interest); some say there is no profit greater than half; and others say if the profit exceeds the price by half, it is riba (usury or interest). I ask you, Honorable Shaykh, to clarify this matter for us and the amount of lawful profit. May Allah reward you with good.
Answer:
These statements have no basis. Profit is not regulated by a specific limit; rather, it depends on the market. If the profit is high due to rising prices in the market, or low due to falling prices in the market, there is nothing wrong with that. The market determines the increase and decrease of profit, and there is no fixed limit for it. It is not a matter of deception with a fixed limit, but deception and overcharging are forbidden. It is also forbidden to conceal defects in goods and sell them at a high price when they are worth very little, except through overcharging. The buyer... so deception and overcharging are forbidden. However, if the increase in price is due to the rise and fall of the market price, there is nothing wrong with it. Indeed, Allah the Exalted is the One who sets prices, as the Prophet (peace and blessings be upon him) said. There is no fixed limit for profit, except what involves injustice, which is forbidden. If there is deception of the buyer or other types of harm, then this is forbidden. But if the increase and decrease are due to the rise in market prices, it does not rise to a fixed limit.
Source
قناة «العلامة الدكتور صالح الفوزان»، إذا اشتريت سلعة بدينار وأردت أن أبيعها بدينارين فهل يجوز ذلك أن أنه من الربا؟ الشيخ صالح الفوزان — youtube.com
The Arabic text is a machine transcription of the audio recording.
