Fatwa #4799930 May 2024United States of America
Permissible strategy for cash injection (Murabaha)
Question
Person owns a grocery store.
He does not have enough cash flow due to economic circumstances.
He wishes to buy goods from Makro, however I will have to pay for the goods.
I intern will sell the goods to him at a 7% mark up over 10 months
When he buys the goods at makro
- it will be invoiced to him
-I will not see the goods
-i will not take delivery either
-I will only supply cash
How do we make the deal Shari complaint?
Can I make the grocer my wakeel?
To purchase the list of goods he requires?
That I will intern sell to him
Can you be purchaser and supplier to the same company...
Answer
Wa Alaykumus Salaam Wa Rahmatullahi Wa Barakaatuh.
In the Name of Allah, the Most Gracious, the Most Merciful.
Respected brother in Islam,
The procedure suggested by you that you will supply the cash to the grocery store owner to purchase goods from Makro and you will sell the goods at a 7% mark-up without taking delivery of the goods, is incorrect. The 7% mark-up will be purely interest. [1]
The following Shariah compliant alternative could be implemented in order to ensure that the transaction in question be carried out in a way that is permissible according to the Islamic laws of financing:
The financier (yourself in this case) will purchase the goods from the supplier (Makro in this case).
The financier may then personally go and take possession of the goods or appoint a third party (Wakeel) to take possession of the goods on his behalf.
For purposes of practicality, the financier may even appoint the delivery company (who deliver the goods to the grocer) as his Wakeel.
Thereafter, the financier will effect a sale between himself and the grocer on a cost plus profit basis(Murabaha). [2]
The above procedure is called Murabaha Financing. You may refer to the book “An Introduction to Islamic Finance” by Mufti Taqi Uthmani Saab, pg. 104 to 109 for more detail.
The following is a step by step procedure of Murabaha Financing:
Ø A Requires financing.
Ø b Is the financier.
" src="blob:http://askimam.org/0a1e319b-db39-4b79-b7b6-86134dd437eb" alt="image.png" class="Apple-web-attachment Apple-edge-to-edge-visual-media Singleton" style="font-family: Helvetica; font-size: 12px; opacity: 1;">
And Allah Ta’ala Knows best
Ebrahim Ibn Ahmed Dadan
Student Darul Iftaa
Pietermaritzburg, South Africa
Checked and Approved by,
Mufti Ebrahim Desai.
(2021-06-10)
صحيح البخاري (3/ 68)
بَابُ بَيْعِ الطَّعَامِ قَبْلَ أَنْ يُقْبَضَ، وَبَيْعِ مَا لَيْسَ عِنْدَكَ
2135 - حَدَّثَنَا عَلِيُّ بْنُ عَبْدِ اللَّهِ، حَدَّثَنَا سُفْيَانُ، قَالَ: الَّذِي حَفِظْنَاهُ مِنْ عَمْرِو بْنِ دِينَارٍ، سَمِعَ طَاوُسًا، يَقُولُ: سَمِعْتُ ابْنَ عَبَّاسٍ رَضِيَ اللَّهُ عَنْهُمَا، يَقُولُ: أَمَّا الَّذِي نَهَى عَنْهُ النَّبِيُّ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ «فَهُوَ الطَّعَامُ أَنْ يُبَاعَ حَتَّى يُقْبَضَ»، قَالَ ابْنُ عَبَّاسٍ: وَلاَ أَحْسِبُ كُلَّ شَيْءٍ إِلَّا مِثْلَهُ
2136 - حَدَّثَنَا عَبْدُ اللَّهِ بْنُ مَسْلَمَةَ، حَدَّثَنَا مَالِكٌ، عَنْ نَافِعٍ، عَنِ ابْنِ عُمَرَ رَضِيَ اللَّهُ عَنْهُمَا: أَنَّ النَّبِيَّ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ، قَالَ: «مَنِ ابْتَاعَ طَعَامًا فَلاَ يَبِعْهُ حَتَّى يَسْتَوْفِيَهُ»، زَادَ إِسْمَاعِيلُ: «مَنِ ابْتَاعَ طَعَامًا فَلاَ يَبِعْهُ حَتَّى يَقْبِضَهُ»
[2] Introduction to Islamic Finance by Mufti Taqi Uthmani Saab. Page 104-109
References
- Introduction to Islamic Finance by Mufti Taqi Uthmani Saab. Page 104-109