Evidence that Muraabahah is permissible
Fatwa No: 216769

Question

salam, can you please provide the references of hadiths which permits muraabahah transaction?

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His Slave and Messenger.

Muraabahah is the sale of goods at cost plus a known profit mark-up and it is stipulated that the two parties of the contract must know the cost. Ibn Qudaamah said: "This is permissible and there is no difference in opinion regarding its validity and we do not know any scholar who disliked it."

The evidence of permissibility is the general text and the general principle. As for the text, it is the saying of Allaah The Almighty (which means): {And Allaah has permitted trade}[Quran 2:275] As for the principle, it reads: "The basic principle concerning transactions is that they are permissible" as Al-Qaraafi stated in Al-Furooq and as stated by other Muslim scholars.

The Fifth Conference of the Islamic Fiqh Council held in Kuwait issued the following statement regarding that kind of sale: "Muraabahah sale by purchase orderer is permissible on goods already in the physical possession of the seller, as required by Sharee'ah, provided the seller carries the risk of loss before delivery or the consequences of returning the purchased goods because of unseen defects or any other reasons justifying the return of the goods after their reception, provided the conditions of the (valid) sale are met and with the absence of any impediments."

Finally, we do not know any Hadeeth that indicates Muraabahah in particular apart from other forms of sale; however, it is included in the general text that we have stated previously. For more benefit, kindly refer to Fatwa 83725.

Allaah Knows best.

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