The Ruling on Commodity Murabahah (Tawarruq) and an Explanation of Its Nature
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Question:
This questioner: (A. A. A.) says: What is the ruling on commodity murabahah (tawarruq), and what is its nature?
Answer:
Commodity murabahah (tawarruq) is permissible according to the correct view. Its nature is that you buy a commodity from Zayd on credit, then you sell it for cash because you need the cash, for marriage, or to renovate your house, or to pay off a debt on you. This is commodity murabahah (tawarruq): you buy the commodity on credit, and you intend to sell it for your benefit. You go to so-and-so and say: "O so-and-so! I will buy this car from you for one hundred thousand riyals in installments, five thousand each month, or twenty thousand each year, in installments over years or months. Then, after receiving it, you sell it for cash to whomever you wish; so that you can get married, or pay off a debt on you, or renovate your house, or something similar. This is the correct view, and there is no harm in it. Yes; because this falls under the saying of Allah the Exalted: [al-Baqarah: 282]. This is a debt, and because Allah (Exalted and Majestic is He) said: [al-Baqarah: 275]. And this is a sale.
So there is no harm in his buying the commodity that he keeps, or to eat it, like wheat or barley, or buying it to sell it. Merchants buy to sell; merchants buy commodities to sell them. So if you buy a car, or land, or a house, and the purpose of buying it is to sell it, and you bought it on credit with the intention to sell it for cash for a need, such as marriage, or to pay off creditors who are harming you, or something similar. Yes.
The presenter : May Allah reward you with good.
This questioner: (A. A. A.) says: What is the ruling on commodity murabahah (tawarruq), and what is its nature?
Answer:
Commodity murabahah (tawarruq) is permissible according to the correct view. Its nature is that you buy a commodity from Zayd on credit, then you sell it for cash because you need the cash, for marriage, or to renovate your house, or to pay off a debt on you. This is commodity murabahah (tawarruq): you buy the commodity on credit, and you intend to sell it for your benefit. You go to so-and-so and say: "O so-and-so! I will buy this car from you for one hundred thousand riyals in installments, five thousand each month, or twenty thousand each year, in installments over years or months. Then, after receiving it, you sell it for cash to whomever you wish; so that you can get married, or pay off a debt on you, or renovate your house, or something similar. This is the correct view, and there is no harm in it. Yes; because this falls under the saying of Allah the Exalted:
O you who have believed, when you contract a debt for a specified term, write it down.
يَا أَيُّهَا الَّذِينَ آمَنُوا إِذَا تَدَايَنتُمْ بِدَيْنٍ إِلَى أَجَلٍ مُسَمًّى فَاكْتُبُوهُBut Allah has permitted trade
وَأَحَلَّ اللَّهُ الْبَيْعَSo there is no harm in his buying the commodity that he keeps, or to eat it, like wheat or barley, or buying it to sell it. Merchants buy to sell; merchants buy commodities to sell them. So if you buy a car, or land, or a house, and the purpose of buying it is to sell it, and you bought it on credit with the intention to sell it for cash for a need, such as marriage, or to pay off creditors who are harming you, or something similar. Yes.
The presenter : May Allah reward you with good.
Source
binbaz.org.sa
The Arabic text is copied verbatim from the original source, without any edits.