Among the issues of sales is the sale of tawarruq; we ask that you speak to us about this sale?
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The questioner : Also, O honorable Shaykh, among the issues of sales is the sale of tawarruq; we ask that you speak to us about this sale?
The Shaykh : Tawarruq is derived from the word for paper.
The questioner : Yes.
The Shaykh : And it is silver, and its origin is that a man needs dirhams.
The questioner : Very well.
The Shaykh : And he finds no one to lend him, and no one to give him dirhams for a commodity deferred for a year.
The questioner : Very well.
The Shaykh : This is what is known in the Shari'ah as salam. The needy person takes dirhams from a person for a commodity described and specified by attributes, which he delivers to him after a year, for example. This is permissible, as Ibn 'Abbas (may Allah be pleased with him and his father) said: The Prophet (peace and blessings be upon him) came to Madinah and they were making forward sales in fruits for one year and two years, and I think he said and three years. So the Prophet (peace and blessings be upon him) said:Sahih al-Bukhari 2240.
I say that if a person needs dirhams and finds no one to lend him, and no one to give him dirhams in the manner we mentioned, and he buys a commodity worth one hundred for one hundred and twenty for a year, then sells it and benefits from its price, this is the issue of tawarruq.
The questioner : Very well.
The Shaykh : It is called tawarruq because the buyer in it is in need of paper, meaning silver, which is currency. The scholars have a known disagreement regarding it; some of them permitted it, and some of them prohibited it. Among those who prohibited it was Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), to the extent that he was questioned about it repeatedly, but he refused (may Allah have mercy on him) to make it lawful because it opens the door to ruses and deception.
The questioner : Very well.
The Shaykh : Therefore, its outcome is bad. I do not think anyone among the scholars of knowledge says it is permissible. That is because they have come to the merchant to borrow from him, so he sells to them what he sells. Then the merchant and the borrower go to the owner of a shop who has this commodity, and the merchant buys it in a formal purchase that is not intended. For this reason, he does not turn it over, nor look at it, nor haggle over the price designated by the seller. He takes it at whatever price is agreed upon and in whatever condition it is in. In my opinion, if the bags of sugar, for example, were sand, the merchant would not go to inspect them because he bought them as sugar, because it is bought and sold on the basis of the debt, and the debtor sells it to the owner of the shop. This is undoubtedly forbidden, and it does not apply to the issue of tawarruq. For this reason, when Shaykh al-Islam (may Allah have mercy on him) mentioned this issue, he did not mention a disagreement regarding its prohibition. And when he mentioned the issue of tawarruq, he mentioned two opinions of the scholars. Then matters expanded until people fell into consuming riba in multiplied folds. When the debt is due, he says, "Borrow from me and pay me back," so he borrows from him in this manner, which is playing with the rulings of Allah (Mighty and Majestic). He buys from him and pays him back and increases the debt.
And some of them bring other deniable matters, but this is not the place to elaborate on them. So we ask Allah for our brothers to provide lawful, good sustenance. And I take this opportunity to advise my brothers who have been afflicted with this matter to repent to Allah (Mighty and Majestic), and to cut off this practice, and to fear a day when they will be returned to Allah, and every soul will be given what it has earned, and they will not be wronged. And let them know that anything they earn through a forbidden means, there is no good for them in it; rather, it is a loss in this world and the Hereafter. The blessing is removed from it. If they give it in charity, it will not be accepted from them. If they spend it, they will not be blessed in it. And if they leave it behind them, it will be a burden on them and a gain for those who inherit from them.[Ali 'Imran 3:180].
The questioner : May Allah bless you for this good guidance.
The Shaykh : Tawarruq is derived from the word for paper.
The questioner : Yes.
The Shaykh : And it is silver, and its origin is that a man needs dirhams.
The questioner : Very well.
The Shaykh : And he finds no one to lend him, and no one to give him dirhams for a commodity deferred for a year.
The questioner : Very well.
The Shaykh : This is what is known in the Shari'ah as salam. The needy person takes dirhams from a person for a commodity described and specified by attributes, which he delivers to him after a year, for example. This is permissible, as Ibn 'Abbas (may Allah be pleased with him and his father) said: The Prophet (peace and blessings be upon him) came to Madinah and they were making forward sales in fruits for one year and two years, and I think he said and three years. So the Prophet (peace and blessings be upon him) said:
Whoever pays in advance the price of a thing to be delivered later should pay it for a specified measure at specified weight for a specified period.
من أسلم في شيء فليسلم في كيل معلوم ووزن معلوم إلى أجل معلومI say that if a person needs dirhams and finds no one to lend him, and no one to give him dirhams in the manner we mentioned, and he buys a commodity worth one hundred for one hundred and twenty for a year, then sells it and benefits from its price, this is the issue of tawarruq.
The questioner : Very well.
The Shaykh : It is called tawarruq because the buyer in it is in need of paper, meaning silver, which is currency. The scholars have a known disagreement regarding it; some of them permitted it, and some of them prohibited it. Among those who prohibited it was Shaykh al-Islam Ibn Taymiyyah (may Allah have mercy on him), to the extent that he was questioned about it repeatedly, but he refused (may Allah have mercy on him) to make it lawful because it opens the door to ruses and deception.
The questioner : Very well.
The Shaykh : Therefore, its outcome is bad. I do not think anyone among the scholars of knowledge says it is permissible. That is because they have come to the merchant to borrow from him, so he sells to them what he sells. Then the merchant and the borrower go to the owner of a shop who has this commodity, and the merchant buys it in a formal purchase that is not intended. For this reason, he does not turn it over, nor look at it, nor haggle over the price designated by the seller. He takes it at whatever price is agreed upon and in whatever condition it is in. In my opinion, if the bags of sugar, for example, were sand, the merchant would not go to inspect them because he bought them as sugar, because it is bought and sold on the basis of the debt, and the debtor sells it to the owner of the shop. This is undoubtedly forbidden, and it does not apply to the issue of tawarruq. For this reason, when Shaykh al-Islam (may Allah have mercy on him) mentioned this issue, he did not mention a disagreement regarding its prohibition. And when he mentioned the issue of tawarruq, he mentioned two opinions of the scholars. Then matters expanded until people fell into consuming riba in multiplied folds. When the debt is due, he says, "Borrow from me and pay me back," so he borrows from him in this manner, which is playing with the rulings of Allah (Mighty and Majestic). He buys from him and pays him back and increases the debt.
And some of them bring other deniable matters, but this is not the place to elaborate on them. So we ask Allah for our brothers to provide lawful, good sustenance. And I take this opportunity to advise my brothers who have been afflicted with this matter to repent to Allah (Mighty and Majestic), and to cut off this practice, and to fear a day when they will be returned to Allah, and every soul will be given what it has earned, and they will not be wronged. And let them know that anything they earn through a forbidden means, there is no good for them in it; rather, it is a loss in this world and the Hereafter. The blessing is removed from it. If they give it in charity, it will not be accepted from them. If they spend it, they will not be blessed in it. And if they leave it behind them, it will be a burden on them and a gain for those who inherit from them.
And to Allah belongs the heritage of the heavens and the earth. And Allah, with what you do, is [fully] Acquainted.
ولله ميراث السماوات والأرض والله بما تعملون خبيرThe questioner : May Allah bless you for this good guidance.