The Ruling on Tawarruq and Its Permissible Form

Question:
We will take the last call in this session. Brother Abdullah from Khamis Mushait. Please go ahead. And upon you be peace. May Allah keep you safe, Shaykh. May Allah keep you in good health. I say, may you live long, regarding the tawarruq (commodity sale used to obtain cash) that exists in banks now, I consider it a means of circumventing riba (usury or interest), may Allah preserve you, because it is a signature on a sale and a signature on a purchase. We did not see any goods, we did not see any iron, and we did not see anything. So what exists now is, in reality, there is clear doubt. Thank you. The question is clear, please go ahead.

Answer:
My brother, the permissible tawarruq according to the majority is that one buys a commodity for a deferred price, then takes possession of it, receives it, and moves it from the seller’s location, and sells it in another place to someone other than the seller who sold it to him. He sells it to another person and benefits from its price.
As for buying something unknown, and not seeing it, or not taking possession of it, or not dealing with it, while they are the ones dealing with it, this is deception and lying. Perhaps they do not have any goods, but they deceive people in these operations where they cheat people. This is clear riba, and deception and lying do not justify the conscience of either the seller or the buyer if he knows. Yes.

The presenter:
May Allah reward you, Honorable Shaykh Salih al-Fawzan, and may Allah bless you and your knowledge, and benefit the Muslim community with you. May Allah raise your status in both worlds, and may Allah accept these advices and guidelines that you have provided, and these correct fatwas. May Allah reward us and the Muslims with the best reward.