Discussion of the issue of tawarruq.

The Shaykh : I have a question. It says: "And whoever needs cash, listen to this in the explanation: 'And whoever needs cash, let him buy what is worth one hundred for more, so that he may expand its price; there is no harm in this, and it is called the issue of tawarruq.'" Pay attention: "And whoever needs cash"—a person who wants to get married and has no money—buys what is worth one hundred for more. For example, he buys a car worth one hundred for more, meaning on credit, so that he may expand its price. There is no harm in this, and in my explanation, it is called the issue of tawarruq. This issue is a matter of scholarly disagreement, and there are also two narrations from Imam Ahmad. Some scholars say it is permissible because a person might buy this item for a specific purpose related to the item itself, such as a man who buys a car to use it. Or the purpose might be the value of the car; he buys it in order to sell it and expand the price. They say this purpose is like the first purpose, but the first purpose was to benefit from the item itself, while this one is to benefit from its value, so there is no difference. Therefore, they say it is permissible. The second opinion is that it is forbidden, and this is a narration from Imam Ahmad and the choice of Shaykh al-Islam Ibn Taymiyyah. It is also the narration from 'Umar ibn 'Abd al-'Aziz (may Allah have mercy on him). The reasoning for this is that the purpose of the one who bought the car is what? It is the money. So it is as if he took eighty dirhams for one hundred dirhams on credit. Thus, it is a stratagem. Imam Ahmad explicitly stated that this is one of the issues of 'inah. So, the scholars have two opinions on this issue: the first is that it is forbidden, and the second is that it is lawful. This is because it is a stratagem. However, according to the opinion that it is lawful, the motive must be need, based on the statement: "And whoever needs". If the motive is increase and accumulation, then it is forbidden and not permissible. Because their statement "And whoever needs" is not to describe the reality, but it is a condition. Because if there is no need, there is no basis for its permissibility, since it is a stratagem close to riba. Ibn al-Qayyim (may Allah have mercy on him) says in "I'lam al-Muwaqqi'in" that our Shaykh (may Allah have mercy on him) was often consulted about this, meaning perhaps to permit it, but he (may Allah have mercy on him) refused, saying it is forbidden: "And stratagems do not increase forbidden things except in evil". But I see that it is lawful with conditions. The first condition is that a loan or salam becomes difficult, meaning that obtaining money through a lawful way becomes difficult. A loan in our current time is generally what? It is difficult, especially among merchants, except by the will of Allah. Salam is also rare and not known by many people. Salam is paying the price in advance and delaying the delivery of the item. How is the price paid in advance and the delivery delayed? For example, I go to someone and say: I need twenty thousand riyals. Give me twenty thousand riyals, and I will give you in exchange after one year a car with such and such specifications, or I will give you in exchange wheat or rice, and I describe it. What is this called?

The questioner : Salam.

The Shaykh : It is called salam and it is called salf, and it is permissible. The Companions (may Allah be pleased with them) used to do that for one or two years in fruits. So the Prophet (peace and blessings be upon him and his family) said: This is a condition.
The second condition is that he needs it, needing it with a clear need.
The third condition is that the commodity is with the seller. If it is not with the seller, then he has sold what he has not taken into his guarantee. And if the Prophet (peace and blessings be upon him and his family) forbade selling commodities in the place of their purchase until the merchant moves them to his residence, then this is even more so, because it is not with him. If these three conditions are gathered, then I hope there is no harm in it, because a person may sometimes be compelled to this transaction. Yes? That it is with the seller.