The Ruling on Trading in the Black Market

Question:
A message was received by the program from one of the listening brothers. He says: I am Ali al-Rifai, Ali Jalal, of Egyptian nationality, residing in the Sultanate of Oman. Our brother is asking and says: A brother from Sudan asked a question, specifically on the thirtieth of the eleventh month of 1987 CE. The question of this brother was: Is trading in the black market lawful or forbidden? His Eminence Shaykh Abdul Aziz ibn Abdullah ibn Baz answered this question, and His Eminence’s answer was that there is no objection to trading in the black market. I have a comment here on this answer, which is: What is known about the black market is the hoarding of goods and withholding them until they are gone from the market, and then they are sold to Muslims at high prices. In this case, Muslims are forced to buy at high prices because of their need for these goods, and because they are not available except in the black market. This is exploitation of Muslims, and by the logic of the period, it appears that this is not permissible in Islam.
So how did His Eminence Shaykh Ibn Baz permit trading in the black market, given the situation described? Please provide information, and may Allah reward you with good.

Answer:
The answer that was given is that we believe the black market is the general market where people sell and buy, other than what takes place in the known banks and financial institutions. So the black market about which the fatwa was issued is what takes place between people in their markets, their selling and buying, and that there is no harm in selling in the general market, and not being restricted to the prices in the banks. This is what we intended.
As for if there are goods that are hoarded and harm Muslims, where their hoarding harms Muslims, then this is another matter. This is another matter, the matter of hoarding. And hoarding is prohibited. The Prophet (peace and blessings be upon him) said regarding the hoarder: , so hoarding is not permissible in foodstuffs, nor in things similar to them, according to the correct view, that harm Muslims. So the one who, for example, withholds goods that Muslims need, such as food or other things that people need, until the price rises, until it goes up, until he sells to people at a high price, this is not permissible, not in the black market nor in anything other than the black market.
It is not permissible for a Muslim to hoard what the hoarding of it harms Muslims, until he sells it at a high price. Rather, he must sell with the people, and be generous with the people. So it is not for the one who has food and the people need it to hoard it until its price rises. And it is not for the one who has weapons at a time of need for jihad in the country to hoard them until their price rises. No, rather he must sell at the time when Muslims need them for lawful jihad, or for their eating and drinking, or for their clothing and the like. And he has no right to hoard anything the hoarding of which harms Muslims. This is a rule according to the correct view, and some of the scholars of knowledge restricted this to food.
And the correct view is that it is not restricted to food, but rather anything the hoarding of which harms Muslims, its hoarding is prohibited. And it is obligatory for the Muslim not to hoard it, whether it is food or other than food. This is the answer to the questioner. Yes.

The presenter: May Allah reward you with good. So: Describing this market as "black" seems to me to be because this type of transaction takes place in it, His Eminence the Shaykh?

The Shaykh: This can be a convention for some of them. Perhaps the "black" differs in the convention of people. Yes.

The presenter: May Allah bless you. You mentioned, His Eminence the Shaykh, that hoarding is not permissible in any case, whether in foodstuffs or in other things. Does this include cars, iron, and the like?

The Shaykh: If it harms Muslims. If its hoarding harms Muslims. But if the commodity is widespread and abundant, and the fact that he keeps it with him until the price changes does not harm Muslims, there is no harm.

The presenter: Naturally, there is harm, His Eminence the Shaykh, in that he buys the commodity today for ten thousand, and if it disappears for a period, I will buy it for eleven thousand?

The Shaykh: If his withholding of it does not change the price, and does not harm people. If his withholding of it does not harm the price, and does not harm people, but he bought it saying: Perhaps Allah will bring a share in it after a while, there is no harm.

The presenter: May Allah bless you. So: If the matter leads to a change in the price and its rise, then at that time, is this from the category of hoarding?

The Shaykh: This is hoarding. Yes.

The presenter: May Allah bless you, and it is prohibited naturally?

The Shaykh: Yes. It is prohibited.

The presenter: May Allah reward you with good.