Generally speaking, there is no reservation against a Muslim trading in different items as long as it does not involve injustice, cheating, or making exorbitant profits; or lead to the promotion of that which is haram (forbidden by Allah). The Prophet (peace and blessings be upon him) is reported to have said, “The best kind of profit is that of the traders who do not lie on talking, do not break their word on giving promises, do not betray others when entrusted by them, do not flatter on selling something, or criticize on purchasing something, and if somebody owes them something, they do not press him to pay, and if they owe something to others, they do not procrastinate in paying” (Al-Asbahani and Al-Baihaqi).
The eminent Muslim scholar Sheikh Yusuf Al-Qaradawi states the following: Islam encourages trading as a way of making a lawful earning. The Qur’an encourages the Muslim to travel in the land (in search of Allah’s bounty) (Al-Muzzammil 73: 20). The Qur’an also says about merchants: (It is no sin for you that ye seek the bounty of your Lord (by trading)) (Al-Baqarah 2:198). This verse was revealed in the season of Hajj to teach the Muslims that it is permissible for them to buy and sell during Hajj, as the Muslims before the revelation of this verse were reluctant to do business during Hajj, fearing that this might compromise the sincerity of their intentions in worship.
Allah Almighty also says concerning Friday Prayer: (And when the prayer is ended, then disperse in the land and seek of Allah’s bounty) (Al-Jumu`ah 62:10).
`Umar (may Allah be pleased with him), moreover, said, “There is no place where I prefer to die after the battlefield (where I fight in Allah’s cause) except a marketplace where I buy and sell for my children’s sake.” He derived this from Almighty Allah’s words that mention those who travel for the purpose of trade side by side with those who fight in His cause : (He knoweth that there are sick folk among you, while others travel in the land in search of Allah’s bounty, and others (still) are fighting for the cause of Allah) (Al-Muzzammil 73:20).
Allah also counted it as His favor upon Quraish that He facilitated for them two trade journeys each year one to Yemen in winter and the other to the Levant in summer. He Almighty says in this respect: (For the covenants (of security and safeguard enjoyed) by the Quraish, their covenants (covering) journeys by winter and summer. Let them adore the Lord of this House, Who provides them with food against hunger, and with security against fear (of danger)) (Quraish 106:1-4).
Besides, there were successful righteous traders among the Prophet’s Companions, like `Abdur-Rahman ibn `Awf, who emigrated penniless from Makkah to Madinah but then worked in trade until he became very rich. When he reached Madinah, the Prophet (peace and blessings be upon him) established the bond of fraternity between him and Sa`d ibn Ar-Rabi`. Sa`d said to `Abdur-Rahman, “I am the richest of all the Ansar, so I want to divide my property (between us), and I have two wives, so see which of the two you like and tell me, so that I may divorce her, and when she finishes her prescribed period (i.e., `iddah) of divorce, then marry her.” `Abdur-Rahman said, “May Allah bless your family and property for you. As for me, I am a trader; so tell me where your market is.” So they showed him the market. He went there with some cheese and butter to sell. He continued working in trade until he surpassed the Jews in that field and became one of the wealthiest men. When he died, his wealth was so great that although one of his wives was compounded for a quarter of her inheritance from him, her share after this reached eighty thousand dinars (imagine how great his wealth was then, bearing in mind the purchasing power of the dinar then). Recall that `Abdur-Rahman ibn `Awf was one of the ten Companions whom the Prophet (peace and blessings be upon him) gave the glad tidings of entering Paradise. So, if there had been something blameworthy concerning trade, he would not have worked in that field. Hence, trade is neither denied nor disliked in Allah’s religion.
However, traders should tread this field cautiously, for it involves many things that may, Allah forbid, lead one into Hellfire. That is why the Prophet (peace and blessings be upon him) was reported to have said, “Traders will be raised up as wicked people on the Day of Judgment, except those who fear Almighty Allah, do good, and are truthful” (At-Tirmidhi, Ibn Majah, Ibn Hibban, and Al-Hakim). Hence, fear of Almighty Allah, good deeds, and truthfulness save traders from Hellfire on the Day of Judgment.
There is also another hadith to the effect that there are three persons whom Allah Almighty will not look at on the Day of Judgment; among them, according to the Prophet (peace and blessings be upon him) is “a man who takes an oath falsely that he has been offered for his goods so much more than what he is given” (Muslim).
The Prophet (peace and blessings be upon him) was also reported to have said, “The sellers lie and take false oaths (to sell their goods) and thus they become sinful” (Ahmad and Al-Hakim).
He (peace and blessings be upon him) also said, “Traders make Allah an item of their goods as they sell by His oath and purchase thereby” (At-Tabarani).
The above hadiths indicate that traders who swear falsely by the name of Almighty Allah to promote their goods are gravely sinful; Almighty Allah will neither look at them nor bestow mercy upon them on the Day of Judgment. Almighty Allah’s name must be highly sanctified. He Almighty says: (And make not Allah’s (name) an excuse in your oaths against doing good) (Al-Baqarah 2:224).
Thus, the fault in the trade field lies in the traders’ not caring whether they gain licit or illicit profits. Traders of this kind will be raised up as wicked people on the Day of Judgment, according to the hadith quoted above to that effect.
On the other hand, righteous traders deserve Almighty Allah’s pleasure and are guiltless of the faults committed in this field. This is because they abide by the following rules:
1. Trade must be in lawful things only. It is not permissible for Muslims to trade in prohibited materials, such as intoxicating drinks and pork, even if they sell them to non-Muslims. The Prophet (peace and blessings be upon him) cursed ten people concerning intoxicating drinks. Among them are the one who presses the fruit or grain from which they are made, the one who carries them, the one to whom they are carried, the one who serves them, and the one who sells them.
Moreover, a man came to the Prophet (peace and blessings be upon him) with a bag filled with wine as a present to the Prophet (peace and blessings be upon him). But the Prophet said, “Allah forbids intoxicating d
rinks.” The man said, “Then I will sell it.” The Prophet replied, “He Who forbids drinking them also forbids also selling them.” The man said, “Then I will give it as a present to the Jews.” The Prophet (peace and blessings be upon him) said, “He Who forbids drinking and selling them also prohibits giving them as a present to the Jews.” The man said, “What then should I do regarding it?” The Prophet (peace and blessings be upon him) said, “Go and spill it on Al-Batha’(a valley between Makkah and Mina)” (Al-Humaidi in his Musnad).
It follows from this that producing, importing, exporting, or trading in intoxicating drinks in any way is prohibited.
2. There must be no fraud or deception. The Prophet (peace and blessings be upon him) was reported to have said, “He who deceives us is not of us” (Muslim).
3. There must be no hoarding. Hoarding is forbidden. The Prophet (peace and blessings be upon him) was reported to have said, “He who hoards goods (until the price rises) is sinning” (Muslim and Abu Dawud).
This applies to hoarding any commodities Muslims need, whether foodstuff or other. The term “sinning” here is not to be taken lightly. It is the same epithet Allah Almighty has given to some of the great tyrants in history. For example, He Almighty says: (Lo! Pharaoh and Haman and their hosts were ever sinning) (Al-Qasas 28:8).
4. Sellers are not to promote their goods by swearing falsely. They are to avoid swearing in general as much as possible, even if it is truthful. The Prophet (peace and blessings be upon him) described the false oath as “ghamous,“ i.e., leading the one who takes it to sinning in this world and to Hellfire in the Hereafter. Besides, the false oath brings upon the one who takes it Allah’s wrath on the Day of Judgment and ruins his family life.
5. Traders should not exploit the people’s need and make much more profit at their expense by raising prices higher than their already-fixed value determined by the government.
Governments raise their employees’ salaries at
certain rates so that the latter can afford their needs amidst the already-high prices of commodities, but traders exploit this and raise the prices much more to greedily gain further profits.
Raising prices in this way is considered a crime, as it causes hardship to many people whose income is limited and whose standard of living is low. In this regard, it was reported that Ma`qal ibn Yassar, on his deathbed, said to the people round him, “Help me to sit so that I talk to you about the Prophet (peace and blessings be upon him).” Then he said, “I heard the Prophet (peace and blessings be upon him) saying, ‘Allah Almighty has vowed to throw in Hellfire on the Day of Judgment he who excessively raises prices at the expense of Muslims.’” The people said to Ma`qal, “Have you really heard this from the Prophet (peace and blessings be upon him)?” He replied, “More than once or twice” (Ahmad, At-Tabarani, and Al-Hakim).
The Prophet (peace and blessings be upon him) wanted by this to convince traders of the importance of seeking fair profit. Why should they greedily raise prices? It is preferable for them to make a little profit and sell much more than to make much profit and sell little. It is untenable that they accumulate worldly gains in any way and still think they are right. Islam calls for fair dealing in all walks of life. So, if people are left to determine prices, they should take into account the spirit of justice in this regard.
6. Traders are to purify their wealth by paying zakah on it. They are to pay 2.5 percent of the total value of the wealth. This applies to wealth that is in cash money or in business stocks and trade articles. If the investment is in immovable property like revenue buildings, office buildings, factories, and the like, such as refrigerators where goods are preserved, these things are not to be counted in zakah; the rate of zakah in this case goes by the total net income, and not the total value of the whole property. In other words, zakah is paid only on the money or the products and goods that are put up for trade or selling. This applies also to what others owe to the traders. As for traders’ due credits, they are to pay them first and then pay zakah on the remaining net balance. Rich people should not consider such a rate as a high one, giving Satan the chance to influence them and induce them not to pay it. They are to keep in mind Almighty Allah’s words: (The devil promiseth you destitution and enjoineth on you lewdness. But Allah promiseth you forgiveness from Himself with bounty) (Al-Baqarah 2:268). They are to consider also Allah’s words: (And whatsoever ye spend (for good) He replaceth it. And He is the Best of Providers) ( Saba’ 34:39).
7. Business is not to be time-consuming for Muslim traders at the expense of their religious duties towards Almighty Allah and their fellow brothers and neighbors. Traders are to consider this rule quite well, as most of them are indulged in the vortex of commercial activity and how much profit they might gain. That is why the Prophet (peace and blessings be upon him) encouraged traders to be mindful of their religious duties by saying, “An honest and trustworthy merchant will be with the Prophets, the truthful, and the martyrs” (At-Tirmidhi). The Prophet (peace and blessings be upon him) was also reported to have said, “The best kind of profit is that of the traders who do not lie on talking, do not break their word on giving promises, do not betray others when entrusted by them, do not flatter on selling something or criticize on purchasing something, and if somebody owes them something, they do not press him to pay, and if they owe something to others, they do not procrastinate in paying” (Al-Asbahani and Al-Baihaqi).
These are the characteristics of the traders worthy of accompanying the prophets, the truthful, and the martyrs on the Day of Judgment. To them, the following words of Almighty Allah also apply: (Men whom neither merchandise nor sale beguileth from remembrance of Allah and constancy in prayer and paying to the poor their due; who fear a day when hearts and eyeballs will be overturned; that Allah may reward them with the best of what they did, and increase reward for them of His bounty. Allah giveth blessings without stint to whom He will) (An-Nur 24:37-8).
In fact, every Muslim working in trade can have such characteristics but, unfortunately, there are few who are of this kind. People nowadays seldom remember their religious duties and get convinced of the lawful ways of earning money. Instead, they run after gaining wealth in any way, even if unlawful, at the expense of others.