Summary of Feqh - Section 1: Transactions that are prohibited because they involve risk and uncertainty:

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Section 1: Transactions that are prohibited because they involve risk and uncertainty:

Firstly: Defining “uncertainty”
Linguistically: “Gharar (uncertainty)” is the gerund (ism masdar) of “taghrir”, which means “danger”, “deception”, and for a person to expose themselves or their wealth to destruction. We say, “gharrathu al-dunya ghurura”, meaning: “this world deceived him with its adornments”. “Ghirrah”, with a kasra, means “heedlessness”, and “gharar” is “danger”. [1112] Al-Sihah by Jawhari (2/769) and Al-Misbah al-Munir by Fayumi (2/444).
Technically: Something whose occurrence is unknown, which is unable to be handed over, or whose nature and quantity are unknown. [1113] Zad al-Ma`ad (5/725).

Secondly: Ruling on transactions of uncertainty
1. Prohibited risk
Excessive risk:
Excessive risk is prohibited in trade agreements, [1114] Uncertainty (gharar) can occur in the trade contract, the stipulations of the trade, or the commodity itself. and this was agreed upon by the four jurisprudential schools of thought: the Hanafis, [1115] Tabyin al-Haqa’iq by Zayla`i (4/46) and Al-`Inayah by Babarti (6/411). Malikis, [1116] Sharh al-Zurqani `ala Mukhtasar Khalil (5/133) and Minah al-Jalil by `Ulaysh (5/25, 29). Shafi`is, [1117] Al-Majmu` by Nawawi (9/411) and Mughni al-Muhtaj by Shirbini (2/12). and Hanbalis, [1118] Al-Mubdi` by Burhan al-Din Ibn Muflih (3/361, 362) and Sharh Muntaha al-Iradat by Bahuti (2/11). and a consensus was reported to that effect. [1119] Ibn `Abd al-Barr said: “Excessive risk is not permissible by consensus, but a small amount is allowed, for trades cannot avoid a small amount of risk.” Al-Istidhkar (7/409). Ibn Rushd said: “The jurists unanimously agree that excessive risk in transactions is not permissible and a small amount is. They differ concerning certain types of risk, which some of them classify as excessive risk and others classify as minor risk because of the lack of clarity concerning which of the two categories it should fall under.” Bidayat al-Mujtahid (3/173). Qarafi said: “Risk and uncertainty are of three types. [Firstly,] the major type, which is prohibited by consensus, like [selling] birds in the sky. [Secondly,] the minor type, which is permitted by consensus, like [selling] the foundations of a house or the cotton of a garment (jubbah)…” Al-Furuq (3/265, 266). Nawawi said: “[As for] what necessity calls for and cannot be avoided, such as the foundations of a house, buying a pregnant animal with the possibility that the offspring may be one or more, male or female, or complete or incomplete in its limbs, buying a sheep with its udder full of milk, and so on, selling these is valid by consensus. A consensus has also been transmitted from the scholars regarding items with minor defects.” Al-Majmu` (9/258). Ibn Sirin and Shurayh differed on this point, stating that uncertainty in day-to-day dealings is not prohibited [in general]. Ibn Abi Shaybah said: “Ibn `Ulayyah narrated to us from Ibn `Awn, from Ibn Sirin, who said: ‘I do not know of any harm in trades of uncertainty.” Musannaf Ibn Abi Shaybah (4/312). Ibn Hazm said: “From the chain of al-Hajjaj ibn Minhal, Hammad ibn Zayd informed us from Ayyub al-Sakhtiyani that Muhammad ibn Sirin used to see no harm in purchasing a runaway servant if both parties [to the trade] had the same information about him.” Al-Muhalla bi al-Athar (7/290). Ibn Hajar said: “Tabari related from Ibn Sirin, with a sound chain: ‘I do not know of any harm in trades of uncertainty.’ Ibn al-Mundhir’s narration that he said, ‘There is no harm in purchasing a runaway servant if both parties [to the trade] have the same information about him’, indicates that he considered trades of uncertainty [acceptable] if the property is unimpaired.” Fath al-Bari (4/357).

Evidences:
(1) From the Sunnah: [1120] Nawawi said: “The trade of touch (al-mulamasah), the trade of reciprocal throwing (al-munabadhah), the trade of the camel’s unborn offspring (habal al-habalah), the trade of throwing pebbles (al-hasah), the trade of the male animal’s copulation (asb al-fahl), and so on, are examples of trades that have been specifically prohibited. Although they are included in the prohibition against trades of uncertainty, they are individually highlighted and warned against due to the fact they are well-known trade practices from the days of pre-Islamic ignorance (jahiliyyah).” Sharh Muslim (10/157). Abu Hurayrah narrated: “The Messenger of Allah forbade transaction by stone throwing and transactions involving risk.” [1121] Reported by Muslim (1513).
(2) Because risky transactions are of uncertain consequence, and trade is based on clarity. [1122] Tabyin al-Haqa’iq by Zayla`i (4/46) and Nihayat al-Muhtaj by Ramli (3/405).
(3) Because it leads to the corruption of gambling, which not only stokes enmity and hatred, but also involves consuming each other’s wealth unjustly, which is a form of oppression. Therefore, we may conclude that risky transactions involve injustices, enmity, and hatred. [1123] Majmu` al-Fatawa (29/23).

The presence of uncertainty in financial exchanges:
Uncertainty is prohibited in financial exchange agreements but not in donation agreements, and this was the position of the Malikis [1124] Sharh al-Zurqani `ala Mukhtasar Khalil (6/15). See also Al-Dhakhirah by Qarafi (4/354). and the preferred opinion of Ibn Taymiyyah, [1125] Ibn Taymiyyah said: “It is unequivocally known that sharecropping, farming partnerships, and similar arrangements fall under the category of partnerships and not pure exchange. Uncertainty in trades is prohibited in pure exchanges as it entails the unlawful consumption of wealth.” Al-Qawa`id al-Nuraniyyah, p. 234. Ibn al-Qayyim, [1126] Ibn al-Qayyim said: “If the seller is incapable of delivering the commodity, then it is [a trade of] uncertainty and risk. This applies to all contracts based on mutual exchange, in contrast to bequests, which are pure donations. Bequests do not involve uncertainty when linked to existing or non-existing assets, or to what can or cannot be delivered… [The permissibility of] an unknown gift has been authentically reported from the Prophet.” I`lam al-Muqi`in (2/30). and Ibn `Uthaymin. [1127] Ibn `Uthaymin said: “An unknown item is not permissible in exchanges because the one providing compensation assumes risks, and his affair is between profit and loss. However, if there is no compensation involved, it is permissible even if it is unknown.” Al-Sharh al-Mumti` (13/269). He also said: “The gift of an unknown item is permissible because the recipient either profits or [at least] receives. This is in contrast to exchanges, where the uncertainty implies that it could result in either a gain or loss.” Fath Dhi al-Jalal wa al-Ikram bi Sharh Bulugh al-Maram (3/621).

Evidences:
(1) From the Sunnah:
`Amr ibn Shu`ayb narrated from his father, who narrated from his father, who said: “We were with the Messenger of Allah when a delegation of the Hawazin came to him. They said: ‘O Muhammad, we are a people of origin and lineage, and we have been afflicted by calamities that you are aware of. Be kind to us, may Allah be kind to you.’ He said, ‘Choose between your wealth or your women and children.’ They replied: ‘You have given us the choice between our families and our wealth. Indeed, we choose our women and children.’ The Messenger of Allah said, ‘As for what was for me and the Banu `Abd al-Muttalib, it is yours.’” [1128] Reported by Abu Dawud (2694), Nasa’i (3688), and Ahmad (6729). The wording here is from Nasa’i. Graded sahih by Bayhaqi in Al-Sunan al-Kubra (9/75), Ibn al-`Arabi in `Aridat al-Ahwadhi (4/97), and Ibn al-Qayyim in I`lam al-Muqi`in (1/347), and graded hasan by Albani in Sahih Sunan al-Nasa’i (3688) and Shu`ayb al-Arna’ut in Takhrij Musnad Ahmad (6729).

The statement of the Messenger of Allah, “As for what was for me and the Banu `Abd al-Muttalib, it is yours” indicates the permissibility of a common gift, which is unspecified. A gift is a type of donation agreement, and uncertainty is not prohibited in this context. [1129] Al-Mughni by Ibn Qudamah (6/45) and I`lam al-Muqi`in (2/30).

(2) Because if the recipient of a donation agreement misses out on something, there is no harm to them, because they have not expended anything. This contrasts with financial exchange agreements where, if something is missed out because of risk or uncertainty, the money spent on the transaction will be lost. The wisdom of the Shariah, therefore, necessitates prohibiting uncertainty in such situations. [1130] Al-Furuq by Qarafi (1/151).

2. Permitted risk
Uncertainty in a transaction that is consequential and not an original agreement
Uncertainty is permissible in transactions that are consequential and not original agreements.

Evidences:
(1) From the Sunnah:
`Abdullah ibn `Umar narrated that the Messenger of Allah said: “If somebody sells pollinated date palms, then its fruits belong to the seller unless the buyer stipulates otherwise.” [1131] Reported by Bukhari (2204) and Muslim (1543). The wording here is from Bukhari.

In the case of a person selling pollinated date palms, the Prophet permitted the buyer to stipulate that its fruits would come to them. This would mean purchasing the fruits before their soundness becomes clear, but in accordance with the original agreement, which is the sale of the date palms. Therefore, it is apparent that a small amount of uncertainty is permissible when it is included within and following on from the original agreement, whereas it would not be permissible in other contexts. [1132] Al-Fatawa al-Kubra by Ibn Taymiyyah (4/18).

(2) From the scholarly consensus:
A consensus on some forms of this was related by Ibn Qudamah [1133] Ibn Qudamah said: “Chapter: Selling the produce before its ripening without the condition of picking, based on three scenarios. One of them is to sell it individually to someone other than the original owner. We have mentioned the ruling of this category and clarified its invalidity. Another is to sell it along with the original [tree], and this is permissible by consensus.” Al-Mughni (4/63). and Nawawi. [1134] Nawawi said: “If someone sells a pregnant animal in a general trade, there is a consensus that the unborn offspring is included in the sale.” Al-Majmu` (9/324). He also said: “Muslims unanimously agree on the permissibility of selling an animal with milk in its udder, even if the milk is unknown, because it is considered a part of the animal. The evidence for this from the Sunnah is the narration about animals whose udders have been tied up.” Al-Majmu` (9/326). And: “[As for] what necessity calls for and cannot be avoided, such as the foundations of a house, buying a pregnant animal with the possibility that the offspring may be one or more, male or female, or complete or incomplete in its limbs, buying a sheep with its udder full of milk, and so on, selling these is valid by consensus. A consensus has also been transmitted from the scholars regarding items with minor defects. For example, the scholars agreed on the validity of selling a stuffed garment, even if the material of the stuffing is not known. Selling the stuffing on its own, however, is not valid. They also agreed on the permissibility of renting out a house, and other things, for one month, even though it is not known if the month will be twenty-nine or thirty days. They also agreed on the permissibility of entering public baths or drinking water from a public well for a fee, notwithstanding the variation in the amount of water people use and length of time they stay at the baths.” Al-Majmu` (9/258).

(3) Because when the follow-up transaction occurs alongside the original sale, the follow-up becomes a part of the sale. Therefore, the potential for uncertainty does not cause harm, as is the case with the uncertainty in selling the milk in the udder along with a sheep, date stones along with dates, and wall foundations along with a house. [1135] Al-Mughni by Ibn Qudamah (4/63).

Minor risk in a transaction [1136] Scholars provided examples to illustrate the concept of selling an item without knowing its internal details. For instance, a house is purchased without knowledge of the depth, width, or strength of its foundations. Other examples are renting a house on a monthly basis with the possibility of some months being shorter (i.e., twenty-nine days), or trading a stuffed garment or quilt without the buyer seeing its stuffing.

Minor risk in transaction agreements is permissible. [1137] One example of permissible transactions involving a level of uncertainty is the concept of an open buffet. Eating from an open buffet is allowed in exchange for a specific price that is settled before or after consuming the food. This falls under a minor level of uncertainty that is customarily tolerated between contracting parties and does not fall under the prohibited form of uncertainty. The term “buffet”, which is originally French, refers to a cabinet containing dining utensils in the dining room. Over time, it has also come to refer to foods placed on a table from which diners serve themselves according to their preferences, paying a predetermined amount either before or after eating. See Mu`jam al-Dakhil by Dr. V. `Abd al-Rahim, p. 72.

Evidences:
(1) From the Sunnah:
Abu Hurayrah narrated: “The Messenger of Allah forbade transaction by stone throwing and transactions involving risk.” [1138] Reported by Muslim (1513). This indicates that a transaction is not characterised as a sale involving uncertainty unless the uncertainty is apparent and prevalent. Thus, a transaction containing minor uncertainty remains within the scope of permissibility. [1139] See Al-Bayan wa al-Tahsil by Ibn Rushd (9/385).

(2) From the scholarly consensus:
A consensus on this issue was related by Qadi `Abd al-Wahhab, [1140] Qadi `Abd al-Wahhab said: “There is no difference of opinion regarding the fact that a minor amount of it does not prohibit the validity of the trade.” Al-Ma`unah `ala Madhhab `Alim al-Madinah, p. 1032. Ibn `Abd al-Barr, [1141] Ibn `Abd al-Barr said: “They do not differ concerning the permissibility of minor risk, because trades are not free from it and it is not possible to completely encompass a commodity, neither through sight nor description.” Al-Istidhkar (6/338). Maziri, [1142] Maziri said: “The scholars unanimously agreed on the invalidity of some transactions involving uncertainty and the validity of others. They differed on some, and it is necessary to investigate the underlying principle behind their agreement or diversion. We find that they agreed on the prohibition of selling unborn offspring, birds in the air, and fish in the water, but they later agreed on the permissibility of selling a garment whose stuffing is hidden from sight, even though selling the stuffing on its own would not be permissible. They also agreed on the permissibility of renting a house on a monthly basis, even though the month could be either twenty-nine or thirty days. They agreed on the permissibility of entering a public baths, although people’s water usage and durations of stay differ. They also agreed on the permissibility of drinking from a public water source, despite the differences in people’s habits therein. When they unanimously agreed on the permissibility of the mentioned matters, we conclude that this is because the uncertainty in these cases is negligible and unintended, and its necessity calls for overlooking it.” Al-Mu`allim bi Fawa`id Muslim (2/243). Ibn al-`Arabi, [1143] Ibn al-`Arabi said: “There is no difference of opinion amongst the scholars regarding the fact that minor risk is a trivial fault that can be overlooked.” Al-Qabas fi Sharh Muwatta’ Malik ibn Anas, p. 814. Ibn Rushd, [1144] Ibn Rushd al-Hafid said: “The jurists agree that major risk in trade is impermissible and minor [risk] is permissible.” Al-Qabas fi Sharh Muwatta’ Malik ibn Anas, p. 814. Qarafi, [1145] Qarafi said: “Risk and uncertainty are of three types. [Firstly,] the major type, which is prohibited by consensus, like [selling] birds in the sky. [Secondly,] the minor type, which is permitted by consensus, like [selling] the foundations of a house or the cotton of a garment (jubbah)…” Al-Furuq (3/265, 266). Nawawi, [1146] Nawawi said: “[As for] what necessity calls for and cannot be avoided, such as the foundations of a house, buying a pregnant animal with the possibility that the offspring may be one or more, male or female, or complete or incomplete in its limbs, buying a sheep with its udder full of milk, and so on, selling these is valid by consensus. A consensus has also been transmitted from the scholars regarding items with minor defects.” Al-Majmu` (9/258). and Dardir. [1147] Dardir said: “A small amount of uncertainty is pardoned by consensus due to necessity, as in the case of the foundations of a house. The house is purchased without knowing their depth, width, or strength. Similarly, renting it on a monthly basis is allowed, even with the possibility of the month being incomplete (i.e., twenty-nine days). The same applies to a stuffed garment or quilt, where the stuffing is hidden, drinking from a communal water source, and entering a public baths, with the differences in people’s drinking habits and usage.” Al-Sharh al-Kabir (3/60).

(3) Because transactions are not exempt from minor uncertainty, and every sale inherently involves some level of uncertainty. However, when this uncertainty is minor and unintentional, the Shariah does not address it. Muslims unanimously agree on the permissibility of leasing a servant and a house, although a servant could pass away and a house could fall down beforehand. They also agree on the permissibility of leasing a bathhouse, although people’s water consumption and the condition of the facilities may vary. and drinking from a communal container, where again people’s water consumption may vary. [1148] Al-Mufhim li ma Ashkal min Talkhis Kitab Muslim (4/362). See also Al-Bayan wa al-Tahsil by Ibn Rushd (9/385).

(4) Because it is impossible to encompass all commodities comprehensively, neither through observation nor description. [1149] Al-Istidhkar by Ibn `Abd al-Barr (6/338).

Fourthly: Transactions that include uncertainty

1. Selling the unborn offspring of a pregnant camel (habal al-habalah)
The scholars differed on the meaning of “habal al-habalah” [1150] Linguistically, “habal al-habalah” refers to the foetus in the womb of a female camel, and the term is also used for other animals. See also Tahdhib al-Lughah by Azhari (5/53) and Al-Sihah by Jawhari (4/1665). with two opinions.

Some said that it is a sale with an upfront payment, after which you wait for the camel to give birth. [1151] See Al-Taj wa al-Iklil by Mawwaq (4/363), Fath al-`Aziz by Rafi`i (8/192), Al-Majmu` by Nawawi (9/341), and Al-Istidhkar by Ibn `Abd al-Barr (6/421). Others said it is the sale of the product of the product, meaning that you are selling whatever the camel or animal gives birth to. [1152] Tabyin al-Haqa’iq by Zayla`i (4/46), Al-Binayah Sharh Al-Hidayah by `Ayni (8/148), Al-Taj wa al-Iklil by Mawwaq (4/363), Hashiyat al-`Adawi `ala Kifayat al-Talib al-Rabbani (2/169), and Kashshaf al-Qina` by Bahuti (3/166). Ibn `Abd al-Barr said: “The interpretations are all unanimously agreed upon, and there is no disagreement – and all praise and gratitude is for Allah – amongst the scholars of the Muslims regarding it.” [1153] Al-Istidhkar by Ibn `Abd al-Barr (6/422).

- Ruling on selling the unborn offspring of a pregnant camel
The sale of the unborn offspring pregnant camel is a prohibited trade and is invalid.

Evidences:
(1) From the Sunnah:
`Abdullah ibn `Umar narrated that the Messenger of Allah forbade the sale of the unborn offspring of a pregnant camel. [1154] Reported by Bukhari (2143) and Muslim (1514). The wording here is from Bukhari.

(2) From the scholarly consensus:
A consensus on its prohibited nature was related by Ibn `Abd al-Barr [1155] Ibn `Abd al-Barr said, after mentioning the meaning of “habal al-habalah” according to Malik and Shafi`i: “There is no disagreement amongst the scholars that selling with a term like this is not permissible. Allah has designated fixed times for people, and the Messenger of Allah forbade selling with such a term. The Muslims unanimously agree on this, and this is sufficient knowledge.” Al-Istidhkar (13/313). and Ibn Rushd [1156] Ibn Rushd said, after mentioning a litany of prohibited transactions, one of which was “habal al-habalah”: “These are all trades of jahiliyyah which are impermissible by consensus.” Bidayat al-Mujtahid (3/168). , and a consensus on its invalidity was related by Ibn al-Mundhir [1157] Ibn al-Mundhir said: “They agree on the invalidity of the ‘habal al-habalah’ trade.” Al-Ijma`, p. 103. He also said, after mentioning various opinions on the meaning of “habal al-habalah”: “Trading in this is invalid, and I do not know of any difference of opinion regarding this.” Al-Ishraf (6/17). and Nawawi [1158] Nawawi said: “According to both assessments, the trade is invalid by consensus.” Al-Majmu` (9/341). .

(3) If we say it is the sale of the thing for a price that is deferred until the camel gives birth, then it is a sale with a price that is deferred for an unknown term, and the term takes a portion of the price. [1159] Sharh Sahih Muslim by Nawawi (10/158).

(4) If we say that it is the sale of the product of the product, meaning selling whatever the camel gives birth to, then it involves selling something that, at that time, is non-existent, unknown, and not owned by the seller, and that they are not capable of delivering. [1160] Sharh Sahih Muslim by Nawawi (10/158).

2. Selling unborn animals
Defining “madamin” and “malaqih”
Madamin are what are in the wombs of female animals, and malaqih are what are in the loins of males. Others suggested the opposite, stating that madamin are what are in the loins of male animals, and malaqih what are in the wombs of females. [1161] See Bidayat al-Mujtahid by Ibn Rushd (3/168), Al-Majmu` by Nawawi (9/325), Gharib al-Hadith by Abu `Ubayd (1/208), Al-Nihayah by Ibn al-Athir (3/102), and Tafsir al-Qurtubi (10/18).

- Ruling on selling unborn animals
Selling unborn animals is prohibited and invalid.
Evidences:
(1) From the scholarly consensus:
A consensus on its prohibition was related by Ibn al-Mundhir, [1162] Ibn al-Mundhir said: “They unanimously agreed that the trade of ‘madamin’ and ‘malaqih’ is not permissible.” Al-Ishraf (6/17). Ibn `Abd al-Barr, [1163] Ibn `Abd al-Barr said: “They prohibited [the sale of] ‘madamin’ and ‘malaqih’ and agreed that it is an impermissible trade.” Al-Tamhid (13/314). He also said: “The scholars agreed that selling what is in the wombs of female animals is impermissible as it involves uncertainty, risk, and ambiguity.” Al-Istidhkar (6/456). Ibn Rushd, [1164] Ibn Rushd said: “This falls under the prohibition against selling the unborn offspring of male and female animals. ‘Madamin’ refers to what is in the wombs of pregnant animals, whilst ‘malaqih’ refers to what is in the loins of males. They are both trades of jahiliyyah whose unlawfulness is agreed upon, and they are prohibited for the reasons we have mentioned.” Bidayat al-Mujtahid (3/168). and Qurtubi, [1165] Qurtubi said, after mentioning the meaning of “madamin” and “malaqih”: “The scholars of the Muslims are agreed upon the fact that this is not permissible.” Tafsir al-Qurtubi (10/18). and a consensus on its invalidity was related by Ibn al-Mundhir, [1166] Ibn al-Mundhir said: “They agreed upon the invalidity of the trade of ‘madamin’ and ‘malaqih’.” Al-Ijma`, p. 103. Ibn Qudamah, [1167] Ibn Qudamah said: “The sale of a foetus without its mother and the sale of milk while it is still in the udder [are both impermissible]. The meaning is the sale of a foetus while it is still in the womb without selling its mother along with it, and there is no difference of opinion regarding its invalidity.” Al-Mughni (4/157). This was also related from Ibn al-Mundhir. Shihab al-Din al-Usyuti, [1168] Shihab al-Din al-Usyuti said: “They agreed upon the invalidity of the trade of ‘madamin’ and ‘malaqih’.” Jawahir al-`Uqud (1/58). and San`ani. [1169] San`ani said, after mentioning the narration of Abu Hurayrah concerning the prohibition against selling “madamin” and “malaqih”: “The narration is evidence of the invalidity of selling ‘madamin’ and ‘malaqih’, and this is by consensus.” Subul al-Salam (3/33).

(2) Because the sale involves uncertainty and risk. It is not known whether the animal will be born or not, and if born, beautiful or ugly, complete or defective, and male or female. All these factors vary, and their values differ accordingly. [1170] Muwatta’ Malik (2/665) and Al-Istidhkar by Ibn `Abd al-Barr (6/456).

3. Selling the copulation of the male animal “`asb al-fahl”
Defining “`asb al-fahl”
Linguistically: The “`asb” is the rent taken in exchange for a male animal copulating with a female. Others said that “`asb” is the copulation itself. [1171] Tahdhib al-Lughah by Azhari (2/68). The “fahl” is the male animal, and its plurals are “fuhul”, “fuhulah”, and “fihal”. [1172] Al-Misbah al-Munir by Fayumi (2/463) and Al-Qamus al-Muhit (1041).
Technically: It is the male animal’s copulation with the female. [1173] Al-Insaf by Mardawi (4/217), Mughni al-Muhtaj by Shirbini (2/30), and Nayl al-Awtar by Shawkani (5/174).

The ruling on selling the copulation of the male animal [1174] Ibn Qudamah said: “If a person needs assistance with something and cannot find someone to perform the task for him, it is permissible for him to offer payment for the service (rent) to someone willing to fulfill that need. In this case, the person providing the service is not entitled to take anything from the one in need. Ata' said: "He (the service provider) should not take anything from him." However, there is no harm if the one in need voluntarily gives something to the service provider, especially if he couldn't find anyone else to perform the task. This is because offering payment for a permissible service that fulfills a legitimate need is allowed. This concept is similar to scenarios like purchasing a captive or giving a bribe to an oppressor to prevent his wrongdoing. If someone lends his animal for a service without a formal lease or agreement, and then the owner gifts him something or honors him for that, there is no issue with it. Such acts fall under recognized and virtuous deeds, and reciprocal gestures are acceptable in this context.” Al-Mughni (5/407). He also said: “Accordingly, if someone gives a fee for the service of a male donkey, it is prohibited for the one receiving it, as we have mentioned. However, it is not prohibited for the giver because he has spent his money to obtain a permissible service that he needs. This is not forbidden, as in the case of unlawful cupping, which is deceitful and not permissible. The Prophet, peace be upon him, gave a gift to the one who performed cupping... The companions permitted the purchase of Qurans but disliked their sale. If the owner of the stallion gives a gift or honors it without a rental agreement, it is permissible. This is the opinion of Shafi`i.” Al-Mughni (4/159).

Selling the copulation of the male animal is prohibited and invalid, [1175] However, if the semen of the stallion is separated from the animal and placed in tubes, which is known as artificial insemination for animals, then it is permissible to sell it. This is because there is no deception or ignorance involved, and it is possible to deliver it. Ibn Jibrin said: “As for the sale of sperm from horses to horse breeders, it may be permissible if it is beneficial and effective. The intention should be to increase the population of purebred horses. However, the price should be reasonable without undue inflation, as it is supposed to be affordable for those interested in such animals, and there is no deficiency in their acquisition.” The Official Website of Shaykh `Abdullah ibn Jibrin. The verdict of the General Authority for Islamic Affairs and Endowments in the UAE stated: “There is no objection to selling the sperm itself separately from the camel, provided that this is done under the supervision of a veterinary doctor. However, selling the prohibited sperm is considered providing compensation with the condition that the camel is actually inseminated, as this is a known practice.” The Official Website of the General Authority for Islamic Affairs and Endowments in the UAE, fatwa no. 96936. and this was the position of the majority: [1176] According to the Malikis, it is permissible to rent the male camel for a specific period or a specified number of times. Al-Taj wa al-Iklil by Mawwaq (4/364) and Minah al-Jalil by `Ulaysh (5/37). the Hanafis, [1177] Sharh Mukhtasar al-Tahawi by Jassas (3/97). Shafi`is, [1178] Fath al-`Aziz by Rafi`i (8/190) and Rawdat al-Talibin by Nawawi (3/398). and Hanbalis. [1179] Al-Mubdi` by Burhan al-Din Ibn Muflih (3/367) and Kashshaf al-Qina` by Bahuti (3/166).

Evidences:
(1) From the Sunnah:
Ibn `Umar narrated that the Messenger of Allah forbade taking payment for the copulation of a male animal. [1180] Reported by Bukhari (2284).

Abu al-Zubayr narrated that he heard Jabir ibn `Abdillah saying: “The Messenger of Allah forbade selling the copulation of a camel, water, and land for cultivation. The Prophet forbade these.” [1181] Reported by Muslim (1565).

The Prophet forbade taking payment for the copulation of a male animal and selling the copulation of a camel, and the general principle is that prohibition indicates impermissibility. [1182] Fatawa al-Lajnat al-Da’imah (15/74).

(2) Because it is not possible to guarantee its delivery, because it is dependent on the choice and desires of the male animal. [1183] Al-Mughni by Ibn Qudamah (4/159) and Nayl al-Awtar by Shawkani (5/174).

(3) Because the intended commodity is the semen of the animal, which is not allowed to be exclusively contracted for and is unknown. [1184] Al-Mughni by Ibn Qudamah (4/159). Also, the intended fluid is that which produces offspring, and it is not permissible to take compensation for it, as is the case with blood. [1185] See Al-Kafi by Ibn Qudamah (2/170).

(4) Because it is neither specified nor known. [1186] See Al-Mughni by Ibn Qudamah (4/159) and Nayl al-Awtar by Shawkani (5/174).

4. Selling milk in the udder
Selling milk in the udders is prohibited, [1187] Renting an animal to take its milk, however, is permissible, and this was the preferred opinion of Ibn Taymiyyah, Ibn al-Qayyim, and Ibn `Uthaymin. See Majmu` al-Fatawa by Ibn Taymiyyah (29/78), Zad al-Ma`ad by Ibn al-Qayyim (5/729), and Al-Sharh al-Mumti` by Ibn `Uthaymin (10/30). and is invalid according to the position of the majority [1188] It was allowed by the Malikis and Ibn Taymiyyah in some forms and according to certain conditions. See Hashiyat al-Dasuqi ?ala al-Sharh al-Kabir (4/20), Al-Fatawa al-Kubra by Ibn Taymiyyah (5/387), and Zad al-Ma`ad by Ibn al-Qayyim (5/729). – the Hanafis, [1189] Al-Hidayah by Marghinani (3/43) and Al-`Inayah by Babarti (6/411). Shafi`is, [1190] Al-Majmu` by Nawawi (9/326) and Mughni al-Muhtaj by Shirbini (2/20). and Hanbalis [1191] Al-Insaf by Mardawi (4/217) and Kashshaf al-Qina` by Bahuti (3/166). – and this was the view of a group of the predecessors. [1192] Ibn Qudamah said: “Ibn `Abbas and Abu Hurayrah prohibited it, and Tawus and Mujahid disliked it.” Al-Mughni (4/157).

This is for the following reasons:

(1) Because it is the sale of a thing that has not been created yet, like selling what a female animal is carrying in their womb, and the norms regarding this vary. [1193] Al-Mughni by Ibn Qudamah (4/157).

(2) Because its characteristics are unknown. The milk could be clear or cloudy, and such uncertainty without necessity is not permissible. [1194] Al-Majmu` by Nawawi (9/326). See also Al-Mughni by Ibn Qudamah (4/157).

(3) Because its quantity is unknown. One may observe the udders fullness because of the fat of the animal and mistakenly think that what they are seeing is its milk. [1195] Al-Majmu` by Nawawi (9/326). See also Al-Mughni by Ibn Qudamah (4/157).

5. Selling a goldsmith’s dust [1196] The dust of goldsmiths or jewellers refers to soil or dust that contains particles of gold and silver. See Al-Binayah Sharh Al-Hidayah by `Ayni (8/42) and Al-Bahr al-Ra’iq by Ibn Nujaym (5/329).

Selling a goldsmith’s dust is not permissible in any circumstances, and this was the position of the Malikis [1197] Sharh al-Zurqani `ala Mukhtasar Khalil (5/44) and Hashiyat al-Dasuqi ?ala al-Sharh al-Kabir (3/16). See also Al-Mudawwanah by Sahnun (3/70). and Shafi`is [1198] Al-Majmu` by Nawawi (9/307) and Fath al-`Aziz by Rafi`i (6/14). See also Al-Umm by Shafi`i (2/46). , a statement related from Ahmad, [1199] Al-Furu` by Ibn Muflih (4/172) and Al-Mubdi` by Burhan al-Din Ibn Muflih (2/326). the preferred opinion of Ibn Taymiyyah [1200] Ibn al-Mundhir said: “Selling any of these, including the dust of goldsmiths or jewellers, is not permissible. It falls under transactions involving uncertainty and is considered a type of speculative transaction. Selling something that is not clearly defined or specified, like this dust, is not allowed due to its unknown nature, and it cannot be based on its quantity or rarity.” Al-Ishraf (6/21). and Ibn Hazm [1201] Ibn Hazm said: “Selling the dust of goldsmiths or jewellers is not permissible at all for several reasons. The buyer is essentially seeking the pieces of silver and gold within it, which are unknown and not clearly defined. This type of transaction involves uncertainty and speculation. Furthermore, the Messenger of Allah prohibited transactions involving uncertainty, and selling such dust falls under this category.” Al-Muhalla bi al-Athar (7/307). , and the view of a group of the predecessors. [1202] Ibn al-Mundhir said: “Shafi`i said: ‘Purchasing the dust of minerals in its natural state is not permissible, and this was the view of Thawri, Awza`i, Ahmad, Ishaq, and Abu Thawr.’” Al-Ishraf (6/21). This is because what is intended is the gold and silver in the dust, not the dust itself, and what is in it is not known in terms of existence, description, and quality, making this an uncertain transaction. [1203] Al-Mabsut by Sarakhsi (14/38) and Al-Kafi fi Fiqh Ahl al-Madinah by Ibn `Abd al-Barr (2/693).

6. Selling the wool on an animal’s back
Selling the wool on a live animal’s back is permissible, with the condition that it is shorn immediately, [1204] According to the Malikis, it is permissible to sell wool on the back of the animal, with the condition that its shearing does not get delayed for more than half a month. Al-Kafi fi Fiqh Ahl al-Madinah by Ibn `Abd al-Barr (2/680), Al-Taj wa al-Iklil by Mawwaq (7/413), and Minah al-Jalil by `Ulaysh (7/265). and this was a view of the Shafi`is, [1205] Fath al-`Aziz by Rafi`i (8/155). a transmitted position according to the Hanbalis, [1206] Al-Insaf by Mardawi (4/217). the preferred opinion of Ibn al-Qayyim [1207] Ibn al-Qayyim said: “As for the sale of wool on the back of the animal, if the narration prohibiting it were authentic, it would be necessary to follow it, and opposing it would not be permissible. However, there is a difference in the narrations about it from Imam Ahmad. At times, he prohibited it, and at other times, he allowed it with the condition that its shearing is immediate. The reasoning behind this view is that it is a known matter that can be delivered, so its sale is permitted, similar to green crops. Any uncertainty arising from the mixing of the sold item with the incidental on the owner's property is resolved by the immediate shearing. The incidental is minor and cannot be precisely determined, making it difficult to control. This view considers that if it were not a condition for immediate shearing, it would be similar to the sale of something non-existent that has not yet come into existence. Those who prohibited it were strict in considering it part of the animal, arguing that it is inseparable from the animal, and thus cannot be sold independently like other parts of the animal. This strict interpretation is considered faulty, as the parts of the animal are not easily deliverable while maintaining the well-being of the animal.” Zad al-Ma`ad (5/739, 740). which was declared strong by Mardawi, [1208] Al-Insaf by Mardawi (4/217, 218). and the preferred opinion of Ibn `Uthaymin. [1209] Ibn `Uthaymin said: “The second opinion is that it is valid to sell wool on the back of the animal, with the condition of immediate shearing, and ensuring that the animal is not harmed by it. This view argues that the immediate shearing is a visible and known action, and as long as it does not cause harm to the animal, there is no objection to its sale. The sale does not involve anything objectionable, and this is the soundest opinion.” Al-Sharh al-Mumti` (8/156).

This is for the following reasons:

(1) It is known and can be delivered immediately and so is allowed to be sold, as is the case with ripe dates. The mixing of the commodity with the seller’s property is resolved by its immediate shearing. [1210] Zad al-Ma`ad (5/739).

(2) Because any post-sale increase falls under the category of selling something that is non-existent and has not yet been created in accordance with what is already existent. This is like the permissibility of selling fruits that have not yet been created, as they are a consequence and follow-on of the part that already exists. [1211] Zad al-Ma`ad (5/739).

(3) Because selling it with the condition of immediate payment is permissible, as is the case with selling crops with the condition of immediate compensation. [1212] Al-Sharh al-Mumti` (8/156).

7. Insurance agreements
Defining “insurance”:
Linguistically: It is the establishment of security and tranquillity within oneself, and security is the opposite of fear. [1213] See Al-Mufradat li Gharib al-Qur’an by al-Raghib al-Asfahani, p. 90, Abhath Hay’at Kibar al-`Ulama (4/71), and Mu`jam Lughat al-Fuqaha’ by Muhammad Qal`aji and Hamid Qunaybi, p. 119.
Technically: It is a contract in which the insurer commits, according to its terms, to pay to the insured or to a specified beneficiary a certain amount of money, regular income, or any other financial compensation if an accident occurs or the dangerous event specified in the contract happens, in exchange for a premium or any other financial instalment paid by the insured to the insurer. [1214] See Abhath Hay’at Kibar al-`Ulama (4/71), and Mu`jam Lughat al-Fuqaha’ by Muhammad Qal`aji and Hamid Qunaybi, p. 119.

Commercial insurance
Defining “commercial insurance”
Commercial insurance is a compensatory contract that aims to profit from indemnification through transferring risk from the insured to the insurance company. [1215] Qararat al-Majma` al-Fiqhi al-Islami, p. 36. Commercial insurance has various types, such as property insurance, car insurance, health insurance, liability insurance, insurance against injuries, life insurance, and so on.

The ruling on commercial insurance
Commercial insurance in general is prohibited, and this was the decision of the Islamic Fiqh Council, [1216] Decision no. 9 (9/2) on the topic of “Insurance and reinsurance”. The assembly of the Islamic Fiqh Council of the Organisation of Islamic Cooperation issued a verdict during its second conference, held in Jeddah from 10-16 Rabi` al-Akhir 1406 AH / 22-28 December 1985 CE, which included: “After reviewing what has been issued by the jurisprudential councils and scientific bodies on this matter, they decided the following. Firstly, the contract of commercial insurance with a fixed premium, which commercial insurance companies deal with, is a contract that involves significant uncertainty, corrupting the contract. Therefore, it is religiously prohibited. Secondly, the alternative contract that respects the principles of Islamic transactions is the cooperative insurance contract based on donation and cooperation, and the same applies to reinsurance based on cooperative insurance.” Majallah Majma` al-Fiqh al-Islami, issue 12, (2/731). the Islamic Fiqh Council of the Muslim World League, [1217] The decision of the Islamic Fiqh Academy stated: “Insurance comes in various forms and types. All praise is due to Allah, and blessings and peace be upon the Messenger of Allah, his family, and his companions. As for what follows: The Islamic Fiqh Council has examined the topic of insurance in its various forms after reviewing much of what scholars have written on the subject. It also considered the decisions made by the Council of Senior Scholars in Saudi Arabia during its tenth session held in Riyadh on 4/4/1397 AH, which declared insurance in all its forms as prohibited. After thorough study and discussions, the majority of the Council decided to prohibit all forms of insurance, whether for oneself, commercial goods, or other forms of wealth. The Council unanimously agreed to the decision of the Council of Senior Scholars allowing cooperative insurance as an alternative to commercial insurance, emphasizing this distinction and assigning a special committee to formulate the decision.” Decision no. 5 of the 1st assembly, Qararat al-Majma` al-Fiqhi al-Islami, p. 35. the Council of Senior Scholars of Saudi Arabia, [1218] The decisions of the Council of Senior Scholars included the following: “The Council decided by majority vote that commercial insurance is prohibited based on the following evidence: Firstly, commercial insurance contracts fall under financial compensatory contracts that involve excessive uncertainty and risk. The insured party cannot know the timing and amount of what they will give or take. The calamity may occur, and the insured party may fulfil their commitment without any calamity happening. The insured cannot specify what they will give or take for each individual contract. Authentic narrations of the Prophet prohibit transactions involving uncertainty. Secondly, commercial insurance is a form of gambling due to the financial risks involved, the possibility of fines without a legal basis, and the potential for gaining without equivalent compensation. The insured party might pay insurance premiums, and the calamity may not occur, yet the insurer gains the premiums without providing any compensation. If ignorance prevails in such transactions, it becomes a form of gambling, falling under the general prohibition against gambling in the Statement of Allah Exalted: ‘O believers! Intoxicants, gambling, idols, and drawing lots for decisions are all evil of Shaytan’s handiwork. So shun them so you may be successful’, and the verse after it.” Abhath Hay’at Kibar al-`Ulama (4/308). the Permanent Committee in Saudi Arabia, [1219] The verdict of the Permanent Committee stated: “Buying a car through instalment payments is permissible if the car, the price, and each instalment period are known. However, insurance on the car, as well as life insurance, insurance on body parts, and insurance on goods, and all other types of commercial insurance, are considered impermissible due to the involvement of uncertainty, gambling, and the unlawful consumption of wealth.” Fatawa al-Lajnat al-Da’imah (13/157). Ibn Baz, [1220] Ibn Baz said: “...I would like to inform you that what you mentioned falls under the category of commercial insurance. A verdict has been issued by the Permanent Committee for Scholarly Research and Ifta, stating that it is prohibited. I can provide you with a copy of it, and it should be sufficient, Allah willing.” Majmu` Fatawa Ibn Baz (19/313). He also said: “Yes, a decision has been issued by the Council of Senior Scholars permitting cooperative insurance and prohibiting commercial insurance. I am explaining to the listener the reality of this and that, as what has been issued by the council is the permission for cooperative insurance.” Fatawa Nur `ala al-Darb (19/211). and Ibn `Uthaymin. [1221] Ibn `Uthaymin said: “Regarding insurance, it is prohibited whether it is for a car, wealth, both car and wealth, or against others; all forms of insurance are considered prohibited and a form of gambling. Allah b says: ‘O believers! Intoxicants, gambling, idols, and drawing lots for decisions are all evil of Shaytan’s handiwork. So shun them so you may be successful’, (al-Ma’idah, 90). Allah associates gambling with intoxicants, stone alters, and divining arrows, and insurance falls under the category of gambling. Some individuals have misconstrued the Fatwa issued by the Saudi Arabian Council of Senior Scholars, claiming that it allows commercial insurance. However, the Committee for Fatwa, led by Shaykh `Abd al-`Aziz ibn Baz, issued a clarification stating that this is a fabrication, and the committee only permits cooperative insurance. Cooperative insurance involves creating a fund within a family, where money is deposited, and in case of an incident, assistance is provided from the fund without any return, similar to mutual aid. The claimed permission for commercial insurance is false and misleading.” Liqa’ al-Shahri (no. 59).

This was for the following reasons:

(1) Because commercial insurance contracts are considered financial transactions involving excessive uncertainty and ambiguity, as the insured cannot know the timing or the amount to be given or taken. They pay one or two instalments and then have an incident occur, in which case they will be due a payout from the insurer, or they could pay all the instalments without any incident taking place, in which case they will not receive anything. Likewise, the insurer cannot determine how much to give or take for each individual contract, and it has been related in a sound narration that the Prophet forbade transactions containing uncertainty. [1222] Fatawa al-Lajnat al-Da’imah (15/246).
(2) Because commercial insurance contracts are a form of gambling because of the risk involved in financial compensation, payments due without any infraction or cause, and gains made without compensation or without equivalent compensation. The insured may pay an instalment and then have an accident occur, and then the insurer would be in debt for the full price of the insurance. Alternatively, no risk may materialize. Furthermore, the insurer gains the insurance payments for nothing in return. If one is completely uncertain of the outcome, then it is gambling, and it falls under the general prohibition against gambling in the statement of Allah Exalted: [1223] Fatawa al-Lajnat al-Da’imah (15/246). “O believers! Intoxicants, gambling, idols, and drawing lots for decisions are all evil of Shaytan’s handiwork. So shun them so you may be successful.” [1224] al-Ma’idah, 90.
(3) Because commercial insurance contracts include the usury of excess and the usury of delay. If the insurance company pays more to the insured, their heirs, or to a beneficiary than what was initially paid to them, then it constitutes usury of excess, and the insurer will pay this to the insured after the period of the contract, which is usury of delay, and if the insurance company pays the insured the same as what was initially paid to them, then it constitutes usury of delay only, and both are prohibited in explicit texts and by scholarly consensus. [1225] Fatawa al-Lajnat al-Da’imah (15/247).
(4) Because commercial insurance contracts are considered a prohibited form of betting, as they involve uncertainty, risk, and gambling. The Shariah only permits wagering in cases that benefit Islam and manifest its signs through proofs and acts of the Sunnah. The Prophet limited the permission to bet for material gain to three categories in his statement: “There should be no acquisition of wealth through competition except with camels, horses, or archery.” Insurance is not one of these, neither does it resemble them, so it is not permissible. [1226] Fatawa al-Lajnat al-Da’imah (15/247).
(5) Because commercial insurance contracts involve taking the wealth of others without recompense, which is forbidden in financial exchange contracts as it falls under the general prohibition in the statement of Allah Exalted: [1227] Fatawa al-Lajnat al-Da’imah (15/247). “O believers! Do not devour one another’s wealth illegally, but rather trade by mutual consent.” [1228] al-Nisa’, 29.

Commercial insurance contracts outside of Muslim-majority lands
Commercial insurance contracts are not permissible, even outside of Muslim-majority lands, and this was the decision of the Assembly of Muslim Jurists of America [1229] The decision of the Assembly of Muslim Jurists of America, issued during its second conference in Copenhagen, Denmark, from 4-7 Jumada al-‘Ula 1425 AH / 22-25 June 2004 CE, stated: “The practice of insurance outside the Islamic lands, in the manner of commercial insurance, is deemed impermissible according to the consensus of contemporary scholars.” and the Permanent Committee in Saudi Arabia [1230] The decision of the Permanent Committee stated: “It is not permissible for a Muslim to insure himself against illness, whether in Islamic countries or non-Muslim countries, due to the glaring uncertainty and gambling involved in such insurance. It is also not permissible for a Muslim to insure himself, his body parts, wealth, possessions, vehicles, or anything similar, whether in Islamic countries or non-Muslim countries. This falls under the category of commercial insurance, which is prohibited because it involves grave deception and gambling.”. Fatawa al-Lajnat al-Da’imah (15/297). . This is because such contracts contain excessive and egregious uncertainty and elements of gambling. [1231] Fatawa al-Lajnat al-Da’imah (15/297).

Cooperative insurance
Definition of “cooperative insurance”
Islamic cooperative insurance is a collaboration among a group or several groups of individuals within the community by participating in risk-sharing. It is not aimed at making profit; therefore, it is not considered a financial exchange contract. Various terms are used to describe this type of insurance, including cooperative insurance, mutual insurance, reciprocal insurance, and Islamic insurance. [1232] Decision no. 200 (6/21). Majallah Majma` Fiqh al-Islami, issue 21, p. 1128.

The ruling on cooperative insurance
Cooperative insurance is permissible, and this was stated in the decisions of the Islamic Fiqh Academy of the Organisation of Islamic Cooperation, [1233] Decision no. 9 (9/2), on the issue of insurance and reinsurance, stated: “The assembly of the International Islamic Fiqh Academy of the Organisation of Islamic Cooperation in its second conference held in Jeddah from 10-16 Rabi` al-Akhir 1406 AH / 22-28 December 1985 CE., after considering the resolutions of the jurisprudential assemblies and scientific bodies on this matter, has decided the following: Firstly, commercial insurance contracts with fixed premiums, as practiced by commercial insurance companies, involve significant deception and are harmful to the contract. Therefore, such contracts are considered religiously prohibited. Secondly, the alternative contract that respects the principles of Islamic transactions is the cooperative insurance contract based on donation and mutual assistance. The same applies to reinsurance based on cooperative insurance principles.” Website of the Islamic Fiqh Academy journal. the Islamic Fiqh Council of the Muslim World League, [1234] The decision of the Islamic Fiqh Academy stated: “Insurance in all its various forms and types. All praise and gratitude is for Allah, and may blessings and salutations be upon the Messenger of Allah, his family, and his companions. To proceed: The Islamic Fiqh Academy has examined the subject of insurance in its various forms, after reviewing much of what scholars have written on the matter. Also, after considering the decisions of the Council of Senior Scholars in the Kingdom of Saudi Arabia in its tenth session held in Riyadh on 4/4/1397 AH, declaring the prohibition of insurance in all its forms, whether for individuals, commercial goods, or other assets. Upon thorough study and consultation, the assembly, by majority vote, decided to prohibit insurance in all its forms. This includes insurance on oneself, commercial goods, and other assets. The assembly also unanimously approved the decision of the Council of Senior Scholars, permitting cooperative insurance as an alternative to commercial insurance, which was previously declared as prohibited. The Council committed to forming a special committee to draft this decision.” Qararat al-Majma` al-Fiqhi al-Islami, p. 35, First assembly, decision no. 5. the Al-Azhar Islamic Research Academy, [1235] From the decisions of the second conference of the Islamic Research Academy, 1385 AH, related from Watha’iq al-Nawazil by Jizani (2/1148). the European Council for Fatwa and Research, [1236] Decision no. 83 (1/19), related from Watha’iq al-Nawazil by Jizani (2/1203). and the Permanent Committee in Saudi Arabia. [1237] The decision of the Permanent Committee stated: “Commercial insurance in all its forms is considered haram due to the prohibitions associated with it, such as usury, gambling, and consuming people's wealth unjustly. It does not fall under cooperative insurance, which has been permitted by the Council of Senior Scholars. Cooperative insurance aims to provide assistance to those in need, while commercial insurance is intended for investment and the return of profits and benefits to the participants based on what the company earns. Mixing the two and deceiving people about it is a form of misleading and lying to the knowledgeable. It is essential to be vigilant against such false schemes. Success is from Allah, and may blessings and salutations be upon our Prophet Muhammad, his family, and his Companions.” Fatawa al-Lajnat al-Da’imah (15/266). This is because cooperative insurance does not yield any returns to the participants, and the participants do not intend to invest the amount they pay in. Instead, the aim is to assist those in need and alleviate distress. [1238] Fatawa al-Lajnat al-Da’imah (15/266).

8. Pyramid or network marketing companies
Definition of “pyramid” or “network marketing companies”
Pyramid marketing or network marketing is a sales method that allows participants to build their own network, enabling them to recruit new customers and sell products or services to them, with participants earning a commission for each new recruit. Others said that it is a form of marketing of products or services based on communicative marketing. Participants invite others to purchase a product or service in exchange for a commission for themselves, and they also earn a percentage if their recruits further sell the product, creating a pyramid structure with a network of customers at the base and the participant at the top, benefiting from commissions generated through the network. [1239] See the Official Website of the Jordanian Department of Religious Rulings and the Official Website of the Egyptian Department of Religious Rulings, fatwa no. 483.

Ruling on dealing with pyramid or network marketing companies
Pyramid or network marketing is not a legislated form of brokerage, but rather falls under the category of gambling or speculation (maysir). Therefore, it is forbidden to engage in dealings with pyramid or network marketing companies. This was the ruling issued by the Permanent Committee in Saudi Arabia, [1240] The decision of the Permanent Committee on pyramid or network marketing stated: “This type of transactions is prohibited, as the intended purpose of the transaction is commissions, not the product itself. Commissions can reach tens of thousands, while the cost of the product is only a few hundred. Any rational person, when presented with the choice, would opt for commissions. Therefore, these companies rely on marketing and promoting their products by highlighting the large commissions that participants can earn, enticing them with substantial profits in exchange for a small amount, which is the price of the product. The product marketed by these companies is merely a cover and a pretext for obtaining commissions and profits. Since this is the reality of such transactions, they are considered religiously prohibited for several reasons. Firstly, they involve usury in its various forms: usury of excess and usury of delay. The participant pays a small amount of money to receive a larger amount, involving an exchange of money with a difference and delay. This is usury, which is prohibited by text and consensus. The product sold by the company to the customer is merely a cover for the transaction and has no real significance for the participant, so it does not affect the ruling. Secondly, it falls under prohibited deception, as the participant does not know whether he will succeed in recruiting the required number of participants or not. Network marketing or pyramid schemes inevitably reach a point where they stop, and the participant does not know when joining whether he will be in the upper echelons, thus winning, or in the lower levels, thus losing. The majority of members in such schemes end up losing, and this is the reality of deception, oscillating between two fearsome possibilities. The Prophet (peace be upon him) forbade deception, as narrated by Muslim in his Sahih. Thirdly, it involves the consumption of people's money unlawfully, as only the company and those it desires to benefit from the participants gain any benefit from this contract with the intention of deceiving others. This act is explicitly prohibited in the Quran: "O you who have believed, do not consume one another's wealth unjustly" (Quran 2:188). Fourthly, it includes cheating, deceit, and misleading people by presenting the product as if it is the intended purpose of the transaction, while in reality, the product is not the focus for the participant, and therefore it has no impact on the ruling. Additionally, enticing participants with large commissions that are often unattainable constitutes prohibited deceit. The Prophet (peace be upon him) said, "He who deceives is not of us," narrated by Muslim in his Sahih. He also said, "The two parties of a transaction have the option of canceling it as long as they have not separated, and if they tell the truth and make clear the defects of the goods, then they will be blessed in their transaction, and if they tell a lie and conceal the defects, then the blessing of their transaction will be lost." (Mutual Agreement) As for claiming that this transaction falls under brokerage, this is incorrect. Brokerage is a contract in which the broker receives payment for facilitating the sale of goods. In network marketing, the participant is the one paying for the marketing of the product. The essence of brokerage is the real marketing of the goods, unlike network marketing, where the real purpose is to market the commissions, not the product itself. Therefore, the participant markets to someone who markets in this way, unlike brokerage, where the broker markets to someone who wants the goods in reality. The difference between the two is clear. Claiming that commissions fall under the category of gifts is also incorrect, as not every gift is permissible. A gift on a loan is considered usury, as Abdullah bin Salam said to Abu Burdah: "You are in a land of usury; if someone has a right upon you, and he gives you a gift of a load of straw, a load of barley, or a load of dates, then it is usury." (Sahih al-Bukhari) Therefore, the ruling on the gift is determined by the reason for which it was given.” The Official Website of the General Presidency of Islamic Research and Ifta in Saudi Arabia. the Egyptian Department of Religious Rulings, [1241] The decision of the Egyptian Department of Religious Rulings stated: “Based on all of this, this transaction is considered religiously prohibited in its current form, as it encompasses the aforementioned meanings. Especially since experts have confirmed that the prevalence of such marketing patterns undermines the traditional work system that relies on diverse means. Simultaneously, it fails to establish an alternative, regulated, and stable system, narrowing employment opportunities. It has been found that this type of marketing can lead individuals to unethical practices such as distributor lies or the use of attractive elements that may misrepresent the buyer's will, such as focusing on the commission issue and neglecting to discuss the fundamental contract, which is the purchase of the goods. The Department of Religious Rulings warned in a previous verdict regarding this transaction, emphasizing that its avoidance of these precautions is a condition for its permissibility. However, due to the lack of attention to these restrictions, confusion arose. After studying the reality of this transaction, the Fatwa Authority concluded that it includes these precautions that prevent its permissibility. This led to the firm declaration of its prohibition. Therefore, engaging in such a transaction is not permissible due to its lack of safety from these mentioned precautions.” The Official Website of the Egyptian Department of Religious Rulings, fatwa no. 483. the Jordanian Department of Religious Rulings, [1242] The decision of the Jordanian Department of Religious Rulings stated: “The marketing style of network marketing or pyramid schemes and the collection of commissions in many of its prevalent forms today are not considered legitimate brokerage according to Islamic law. Instead, it falls under the category of gambling and "muqamara" (games of chance) that are prohibited. This is because participants usually engage with the sole purpose of obtaining rewards for bringing in other customers. If a participant brings in a certain number of customers and meets the company's conditions, they receive a commission that may increase or decrease from the initially paid amount. However, if they fail, they lose the entire amount. This element of uncertainty introduces the transaction to suspicions of fraud and games of chance. The essence of the prohibition lies in the compulsion of the participant to pay money in advance, whether for subscription or for the purchase of unintended merchandise, whether in network marketing or pyramid schemes. It is important to note that companies engaged in network marketing and pyramid schemes have diversified their methods. Due to the presence of the aforementioned precautions, the ruling on them is that they are prohibited.” The Official Website of the Jordanian Department of Religious Rulings, fatwa no. 1995. the Islamic Fiqh Academy in Sudan, [1243] The decision of the Islamic Fiqh Academy in Sudan stated: “The fatwa of the Islamic Fiqh Council confirmed the following: Participation in “Business Company” and similar network marketing companies is not permissible according to Islamic law because it involves gambling. The system of “Business Company” and similar network marketing companies is not related to the contract of brokerage, as claimed by the company. The company attempted to convey this message to scholars outside Sudan who issued a fatwa allowing it as brokerage based on questions posed to them. However, the reality, as clarified by the Islamic Fiqh Council, is different from how it was presented.” Related from Al-Mawsu`at al-Muyassarah fi Fiqh al-Qadaya al-Mu`asirah (1/304). and the Islamic Fiqh Academy in India. [1244] The decision of the Islamic Fiqh Academy in India stated: “The prevalent forms of network marketing today often involve various religiously prohibited practices, including deception and usury. Therefore, Muslims are advised to avoid engaging in such types of businesses.”. Related from Usul al-Nawazil by Jizani, p. 537. The prohibition is based on the various harms associated with it, including speculation, deception, and uncertainty. [1245] Decision of the of the Islamic Fiqh Academy in India on network marketing, as related from Usul al-Nawazil by Jizani, p. 537.

9. Lotteries
Definition of “lotteries”
A lottery is a competition where a certain number of people contribute small amounts in the hope of winning a significant sum or another item placed under the draw. Each contributor is assigned a number, and these numbers are placed in a container. Through a random draw, a number or numbers are selected, and the contributor with the matching number becomes the winner of the lottery. [1246] See Qararat al-Majma` al-Fiqhi al-Islami, p. 335, and Mu`jam al-Lughat al-`Arabiyyat al-Mu`asirah (3/2507).

The ruling on lotteries
Lotteries are prohibited, as stated in the decisions of the Islamic Fiqh Council of the Muslim World League [1247] Decision no. 7 of the 14th assembly, Qararat al-Majma` al-Fiqhi al-Islami, p. 335. and the Permanent Committee in Saudi Arabia, [1248] The decision of the Permanent Committee stated: “The lottery game is a way to consume people's money unlawfully.”. Fatawa al-Lajnah al-Da’imah (15/202). and by Ibn Baz [1249] Ibn Baz said: “Profit from the lottery is not considered lawful profit; rather, it falls under the categories of gambling and chance. All money obtained from gambling is impermissible.” Fatawa Nur `ala al-Darb (19/302). and Ibn `Uthaymin [1250] Ibn `Uthaymin was asked about the ruling on lotteries, and he responded: “This process is a prohibited transaction in Islam, and Allah has linked it to partnership and the consumption of alcohol. It falls under the category of gambling, which is undoubtedly forbidden. Allah Exalted says: ‘O believers! Intoxicants, gambling, idols, and drawing lots for decisions are all evil of Shaytan’s handiwork. So shun them so you may be successful’, (al-Ma’idah, 90). Engaging in gambling, whether through this method or any other, is impermissible because gambling is unquestionably a form of usury, which, as heard, is associated with alcohol, stone alters, and divining arrows. Donations from such illicit earnings are not acceptable, as they come from impure and forbidden sources. The Prophet said: ‘Indeed, Allah is pure and only accepts that which is pure.’ Therefore, one who has gained profit through this method and repents must either give charity from what was obtained or spend it for public interests, distancing themselves from it. There is no way to cleanse oneself from this except through such actions. Allah Exalted has said: “So be mindful of Allah to the best of your ability”, (al-Taghabun, 16). I advise my Muslim brothers and sisters and urge them to follow what Allah has commanded, to abandon transactions based on deceit and gambling, regardless of their names or appearances. The realities do not change with different forms or fancy names. In what Allah has permitted us, such as buying, selling, leasing, and other legitimate transactions, there is more than enough to sustain us without resorting to these prohibited dealings.” Fatawa Nur `ala al-Darb by Ibn `Uthaymin (16/2). . This is because the lottery process falls under the category of gambling. Each participant either wins the entire prize or loses the amount contributed, which is the principle of prohibited gambling. [1251] Decision no. 7 of the 14th assembly, Qararat al-Majma` al-Fiqhi al-Islami, p. 335.

10. The ruling on prizes from competitions that require payment
Prizes from competitions that require payment for participation or whose whole or partial value is included in the prize pool [1252] For example, competitions in commercial establishments where entry requires a financial contribution, as well as competitions involving payment for phone calls to participate, mobile messages, magazine competitions when purchased for the sake of the contest, hotel vouchers, and airline points if obtained for the purpose of a competition, all fall under the same category. Also, games where compensation is paid and the outcome is uncertain between winning and losing. are not permissible. This was stated in the ruling of the Islamic Fiqh Academy of the Organisation of Islamic Cooperation [1253] Decision no. 127 (1/14) on the topic of competition cards, issued at 14th assembly in Doha, Qatar, which took place from 10-16 Rabi` al-Akhir 1406 AH / 22-28 December 1985 CE, stated the following: “If the value of ‘coupon’ cards for competitions or a portion of their value is included in the prize pool, it is not permissible according to the Shariah.” Majallah Majma` al-Fiqh al-Islami, issue 12, (2/731). and was also the stance of the Permanent Committee in Saudi Arabia. [1254] The decision of the Permanent Committee stated: “If this competition involves answering questions on cultural topics, without any payment, then receiving the corresponding prize is permissible and there is no harm in that. However, if obtaining the prize is contingent on paying money either before or after participating in the competition, then it falls under the category of prohibited forms of gambling, and it is not permissible to accept the prize in such a case”. Fatawa al-Lajnah al-Da’imah – Second assembly (11/191).

Evidence from the Book:
“O believers! Intoxicants, gambling, idols, and drawing lots for decisions are all evil of Shaytan’s handiwork. So shun them so you may be successful. Shaytan’s plan is to stir up hostility and hatred between you with intoxicants and gambling and to prevent you from remembering Allah and praying. Will you not then abstain?” [1255] al-Ma’idah, 90-91.

Allah Exalted has prohibited gambling, and this type of interaction is a form of gambling. The participant pays a certain amount of money as a risk and will either profit or lose as a result.