The limit of profit in trade
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Question: Is there a specific, defined proportion for profit in trade prescribed by the Shari'ah, or are there no legitimate limits on it, even if it reaches double or twice that?
Answer: There are no limits on profit in trade, because Allah (Glorified and Exalted is He) has permitted trade, buying, and selling without restricting it to a specific limit [Surat al-Nisa: 29] , [Surat al-Baqarah: 282] , and He did not specify the profit; provided that this profit is conducted in the correct manner and in the prescribed manner.
However, if it is not in the correct manner and not in the prescribed manner, such as if it is riba (usury or interest), or an interest-based benefit, or if it involves exploiting the need of the poor and the distressed, then it is not permissible to exploit the need of the distressed, nor to add exorbitant amounts to it because he is in need and distressed.
Question: Even if the profit reaches double, double the value, or twice that?
Answer: There is no specific limit, especially if the high profit is due to rising prices and inflation; there is nothing wrong with that. Rather, as we mentioned, a Muslim should be lenient with his Muslim brother and not burden him with debt and price, especially if
he is in distress and in need. He should consider his situation.
Answer: There are no limits on profit in trade, because Allah (Glorified and Exalted is He) has permitted trade, buying, and selling without restricting it to a specific limit
but only [in lawful] business by mutual consent
إِلَّا أَنْ تَكُونَ تِجَارَةً عَنْ تَرَاضٍ مِنْكُمْO you who have believed, when you contract a debt for a specified term, write it down.
يَاأَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنْتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُHowever, if it is not in the correct manner and not in the prescribed manner, such as if it is riba (usury or interest), or an interest-based benefit, or if it involves exploiting the need of the poor and the distressed, then it is not permissible to exploit the need of the distressed, nor to add exorbitant amounts to it because he is in need and distressed.
Question: Even if the profit reaches double, double the value, or twice that?
Answer: There is no specific limit, especially if the high profit is due to rising prices and inflation; there is nothing wrong with that. Rather, as we mentioned, a Muslim should be lenient with his Muslim brother and not burden him with debt and price, especially if
he is in distress and in need. He should consider his situation.