Trade Principles According to the Sunnah of the Prophet Muhammad (pbuh)

Trade Principles

According to the Sunnah of the Prophet Muhammad (pbuh)The Messenger of God (peace and blessings be upon him) brought an entirely new civilization to humanity. With his migration to Medina, he put this into practice. In the second article of the constitution of the state he established, he declared: “Muslims are a community distinct from all other people.” This statement affirmed that Muslims would have their own unique identity. Therefore, in every aspect of our civilized life, we are to have our own values, our own style, our own way. Every believer and Muslim is responsible for knowing the Islamic perspective on any matter, and if they do not realize it, they must seek it out, prefer it, and implement it in their lives.

Our commercial life is no exception—there is a version of it that aligns with Islam and a version that does not. This responsibility is not limited to professional traders; every individual has some connection to commerce, directly or indirectly. Buying and selling are an inevitable part of daily life for city dwellers, even for salaried workers.  First, we must state that the Messenger of God (peace and Blessings be upon Him) encouraged his followers to engage in trade by saying: “Nine-tenths of sustenance is in trade.” (Suyuti, al-Jami’ al-Saghir [with Fayd al-Qadir], 3, 244) Furthermore, he emphasized the conditions for acceptable trade with his words: “The honest and trustworthy merchant will be with the prophets, the truthful, the martyrs, and the righteous—those who are described in the verse (Surah An-Nisa, 4:69) as companions on the straight path.”

(Tirmidhi, Buyu’, 4)

This indicates that trade, or buying and selling, is bound by certain principles that must be known. In this article, we will attempt to outline some of those principles. However, the rules concerning commerce, from obligatory practices to recommended etiquette, are many. We will focus on the most important ones, organizing them under five main headings to emphasize their significance in the world of trade and draw attention to their relevance:

1. The Human (Person)

2. Time and Place

3. Action

4. Goods (Commodity)

1. PRINCIPLES RELATED TO THE PERSON

The first and perhaps most important element of commerce is the human being, because both the buyer and the seller are people. Therefore, what kind of person should engage in trade? What qualities should they possess? Let’s take a closer look at these points.

Being Legally Accountable and of Sound Mind

In our religion, children and those who are mentally incapacitated are not considered eligible or capable of engaging in trade. Their transactions are managed through their legal guardians. However, children who are nearing puberty may be allowed to engage in minor trade with their guardian’s permission, to help them gain experience in life. Additionally, there is a level of tolerance—according to customary practice—for children trading in low-value goods, or possessions considered theirs by general consent. (Üstrûşenî, Ahkâmu’s-Sığâr, 198)

A Muslim is permitted to engage in commerce with non-Muslims. There are no religious restrictions on this matter. The Prophet Muhammad (peace and blessings be upon him) himself conducted commercial transactions with non-Muslims. For example, the respected Aisha narrates that the Messenger of God (peace and blessings be upon him) once purchased food on credit from a Jewish man and gave his armor as collateral. (Nasa’i, Buyu’, 83)

It is important to note that the ethical principles and rules that apply to trade must also be followed in dealings with non-Muslims. For example, the principles of honesty and fairness—which we will discuss later—must be upheld even when trading with non-Muslims. The fact that our business partner or customer is not Muslim does not give us a license to violate Islamic trade ethics.

Qualities of Muslim Buyers and Sellers

In order for a transaction to fully align with Islamic values, both the buyer and the seller must possess certain characteristics. If these are missing, there is always a risk that errors will occur—and some of those errors may involve the commission of haram (forbidden) acts. Here are some of the key qualities:

Knowledge:

The first condition for ensuring that our commercial dealings conform to Islam is knowledge. Just as in every area of life, our guide in trade must also be knowledge. At the very least, we must be aware of what is haram (forbidden), makruh (discouraged), or halal (permissible)—as well as the specific conditions and causes that render a transaction halal or haram. It is well known that the respected Caliph Umar said: “Let only those who are knowledgeable in religion engage in trade in our marketplace.” (Tirmidhi, Witr, 21)

Indeed, the late scholar Ibn Abidin (d. 1252 AH) refers to the hadith of the Prophet Muhammad (peace and blessings be upon him):

“Seeking knowledge is obligatory upon every Muslim, male and female,” and from this, he concludes the following when listing the essential religious knowledge that every Muslim must learn:

“It is obligatory for anyone involved in any activity to learn the rulings and knowledge related to it so that they can avoid what is unlawful in that area. Likewise, those who engage in trade, marriage, or divorce must learn the Islamic rulings concerning these matters.”

(Ibn Abidin, Radd al-Muhtar, 1/29)

Since almost every Muslim will, in one way or another, engage in commercial activity during their life, the responsibility described here does not only apply to professional merchants—it applies to everyone. The late Sabri F. Ülgener highlights in his book “Moral and Mental Issues in the History of Our Economic Decline” how the Islamic world once thrived during times when religious trade ethics were upheld. However, as unprincipled individuals and ignorant people, such as war deserters, entered the business world, this commercial morality began to erode—and with it, our collective prosperity.

God-Consciousness (Taqwa)

A vital condition for conducting trade in accordance with Islam is taqwa—being cautious not to fall into the unlawful in commercial dealings. As will be discussed later, there are various prohibitions and discouraged (makruh) practices in trade. Sometimes the product itself is unlawful; other times, it is the method of transaction that is impermissible. A Muslim must be alert and sensitive to these matters, always remaining vigilant, conscientious, and God-fearing in their business affairs. The seriousness of this matter is clearly illustrated in the following hadith: “If a single morsel of unlawful (haram) food enters someone’s body, none of their acts of worship are accepted for forty days.” (Ibn Kathir, Tafsir, 1/358; Daylami, Musnad al-Firdaws, 3/592)

Honesty

Honesty is a foundational trait for every Muslim in all areas of life—but it takes on even greater importance in trade. What do we mean when we talk about honesty in business? A seller must give accurate information about the product and not hide its flaws or defects. The Prophet (peace and blessings be upon him) once addressed traders with a stern warning: “O merchants! Indeed, traders will be resurrected on the Day of Judgment as wicked sinners—except those who are God-fearing, honest, and truthful in describing their goods.”

(Tirmidhi, Buyu’, 4)

On another occasion, while inspecting the marketplace, the Messenger of God (peace and blessings be upon him) put his hand into a heap of grain and found the bottom part to be damp. He saw this as a form of deception and dishonesty, and said: “Whoever deceives us is not one of us.” (Muslim, Iman, 164; Abu Dawud, Buyu’, 50; Tirmidhi, Buyu’, 74; Ibn Majah, Trade, 36)

The Prophet Muhammad (peace and blessings be upon him) said: “Fulfill the trust of the one who places their trust in you. Do not betray, even the one who betrays you.” (Tirmidhi, Buyu’, 38; Abu Dawud, Buyu’, 81) With this, the Prophet (peace and blessings be upon him) commands that one should never deviate from honesty, even when dealing with someone who has acted dishonestly. A person who has been wronged is not permitted to respond in kind with betrayal.

There are many more hadiths from the noble mouth of the Prophet (peace and blessings be upon him) concerning honesty. Among them are various prohibitions directly related to trade. Some of these prohibitions are expressed in absolute terms, while scholars, when analyzing these hadiths in light of others—have offered interpretive explanations for some of them. Some scholars take the hadiths literally, while others apply conditions or contextual limits.

Take, for example, the following hadith: “The townsman should not sell on behalf of the desert dweller.” (Tirmidhi, Buyu’, 13)

The meaning here is that someone living in the city should not take advantage of a villager unfamiliar with market conditions by purchasing goods at an unfairly low price, only to later resell them at a high profit. Without going into too much detail here, we can say this: The Prophet’s prohibition is aimed at preventing deception and exploitation. Therefore, if a local buyer purchases goods from the producer at a fair and honest price, without taking advantage of their unfamiliarity with market prices, then scholars have said that such a transaction is not prohibited. (Mubarakfuri, Tuhfat al-Ahwazi, 4/414)

In another hadith, the Prophet (peace and blessings be upon him) forbade intercepting traders bringing goods from distant places before they arrive at the marketplace. He said: “Whoever meets a trader before he reaches the market and buys from him, then when the seller arrives at the market (and sees the actual prices), he has the right to cancel the deal.” (Nasa’i, Buyu’, 18)

Other hadiths containing similar prohibitions should also be understood in this light. For instance: “Do not pretend to be a buyer in order to raise the price if you have no intention of buying.” (Bukhari, Buyu’, 58, 64, 70; Shurut, 8; Muslim, Nikah, 51–52; Buyu’, 11; Birr, 30–32; Abu Dawud, Buyu’, 44; Tirmidhi, Buyu’, 65; Nasa’i, Nikah, 70)

And finally, the Prophet (peace and blessings be upon him) relayed a divine statement in which God says: “As long as two partners do not betray each other, I am the third of them. But when one of them betrays the other, I withdraw from between them.” (Abu Dawud, Buyu’, 27)

2. PRINCIPLES RELATED TO TIME AND PLACE

For a Muslim, in order for trade to remain within the boundaries of what is halal and to be more profitable, there are certain things to know about timing. The most important of these can be summarized as follows:

Being “Early”

One of the key values Islam expects from its followers is to be punctual and early in all matters. A Muslim should rise before sunrise—at the time of dawn (fajr)—perform their prayers, and immediately begin the day’s work. They should pay debts on time, fulfill promises when due, and be prompt in all their dealings. This is clearly emphasized in the prophetic supplication: “O God, bless my nation in their early mornings!” (Allahumma barik li-ummati fi bukuriha) This was narrated by Sahr al-Ghamidi, who mentioned that the Messenger of God (peace and blessings be upon him) would even dispatch his armies early in the morning. Sahr, being a trader himself, used to send out his merchandise in the early hours of the day and eventually became wealthy as a result. (Tirmidhi, Buyu’, 6)

Imam Tirmidhi included this hadith in the chapter on trade in his Sunan collection, under the title “The Importance of Being Early in Trade.” Commentators on this hadith mention other narrations that highlight the value of early rising and the dislike (makruh) of sleeping after the dawn prayer. Mubarakfuri, in Tuhfat al-Ahwazi (4/403 404), and Mundhiri, in Targhib (2/529–531), list several such reports. One of them reads: “Seek your sustenance early, for starting early brings blessing and success.” Another hadith says: “Sleeping in the morning is a barrier to provision.” In yet another narration, the Prophet (peace and blessings be upon him) woke up his daughter, the respected Fatimah, who was sleeping at dawn by nudging her with his foot and said: “O my daughter, rise and witness the distribution of your Lord’s provision. Do not be among the heedless. Indeed, God apportions sustenance between the breaking of dawn and the rising of the sun.”

(Targhib, 2/230)

Trade Must Be Abandoned at Friday Prayer Time

When we speak of haram (prohibited) aspects of trade, we’re not only referring to forbidden goods or unethical methods, but also to the timing of trade. The Qur’an explicitly commands that business transactions be halted when the call to prayer is made on Friday: “O you who believe! When the call is proclaimed to prayer on the day of Friday, hasten to the remembrance of God and leave off trade.”

(Surah al-Jumu’ah, 62:9-10) The scholars are unanimously agreed that engaging in business transactions or anything that distracts from the Friday prayer during this time is prohibited, from the call to prayer until the prayer is completed.

Performing the Five Daily Prayers On Time and Avoiding Other Engagements During That Time

By analogy with the Friday prayer restriction and based on the virtue of praying each daily prayer at its earliest time, devout believers are encouraged to perform their five daily prayers promptly, seeking the pleasure of God. This does not mean that shops must be shut down during each prayer time. However, using the justification “Work is worship too” to excuse delaying or skipping prayers—especially knowingly letting them lapse—is definitely not permissible. To claim that working instead of praying is also worship would require clear religious evidence, which does not exist in this case.  Furthermore, while there is no obligation to perform each prayer at the very beginning of its time, delaying regularly can become a harmful habit. Therefore, a conscientious believer should strive to make praying at the beginning of each prayer time a personal practice.

Fulfilling Other Obligatory Duties on Time

Without going into too much detail, let us state clearly: dedicating all of our time to business activities out of greed for earning more, while neglecting our other essential responsibilities, is not acceptable. These responsibilities include:

1. Our duties toward God,

2. Our duties toward ourselves,

3. Our duties toward our family members,

4. Our duties toward neighbors and relatives,

5. Our duties in raising, guiding, and spending time with our children,

And other moral, social, or spiritual obligations. The hadiths remind us that these duties also exist, and emphasize that “Every rightful person is entitled to their due.” (Bukhari, Sawm, 51; Tirmidhi, Zuhd, 64; Fath al-Bari, 5/114; Mubarakfuri, 7/96)

Principles Related to Place

Some hadiths also mention certain places where trade is restricted. Among these are: Mosques – as they are places dedicated to worship (Nasa’i, Masajid, 22), Public walkways, streets, and roads – which are meant for people to move freely. These spaces must not be obstructed by commercial activities that interfere with their primary purpose. For example, it is forbidden to occupy public paths or marketplaces in a way that hinders the flow of people by placing goods or setting up shop irresponsibly. It is narrated that the respected Caliph Umar once kicked and destroyed a blacksmith’s bellows that had been carelessly placed in the marketplace and was obstructing people’s movement. (Samhudi, Wafa’ al-Wafa, 2/479)

3. PRINCIPLES RELATED TO THE ACT OF TRADE ITSELF

The Prohibition of Interest (Ribā)

Our religion strictly forbids all forms of interest-based trade. The Qur’an denounces dealing with interest as a grave sin, likening it to a declaration of war against God and His Messenger. It also warns that those who engage in interest will rise on the Day of Judgment like someone driven mad by Satan’s touch, and that they will be cast into eternal fire. (Surah al-Baqarah, 2:275–279)

This stern stance of the Qur’an is echoed by many hadiths, which also contain serious warnings against interest. One such hadith states: “May God curse the one who consumes interest, the one who pays it, the one who writes the contract, and the two who witness it.” (Muslim, Musaqat, 25; Abu Dawud, Buyu’, 4; Tirmidhi, Buyu’, 2; Ibn Majah, Tijarat, 5, 8)

The Following Types of Transactions Are Also Prohibited Due to Involvement in Interest (Ribā):

a) It is forbidden to exchange dates (or other fruits) of different qualities by adding a surplus to the lower-quality ones to persuade the other party. If there is a need, the lower-quality dates should be sold for money, and then the higher-quality dates should be bought with that money.

b) Dates for dates, wheat for wheat, barley for barley, salt for salt—such items must be exchanged equally, measure for measure, weight for weight. If any surplus is involved, the transaction becomes ribā (interest). (Nasa’i, Buyu’, 41–43)

When we remember the severe economic crisis that Turkey faced—largely due to interest-based banking schemes that drained the national treasury—the wisdom behind these prophetic teachings becomes undeniably clear. Bediüzzaman Said Nursî, who believed that nearly all human uprisings and unrest arise from a lack of mercy brought on by the prevalence of interest (along with neglect of zakat), states: “Interest leads to idleness; it kills the enthusiasm for work. The constant so-called benefit from interest, and the institutions that serve it—namely, banks—ultimately benefit the worst segment of humanity: the disbelievers. Among the disbelievers, the benefit reaches their worst kind: the oppressors. And among the oppressors, it helps the most vile: the corrupt and reckless. For the Islamic world, it is a complete harm. The justice of the Qur’an proclaims to the world: ‘Interest is forbidden! You have no right to it; it must be abandoned!’ Humanity ignored this command—and received a blow. But before a more terrible one comes, we must listen to this command.” (Nursî, Sözler, Lemaat, 730)

Therefore, Muslims must avoid all forms of interest completely.

Some Prohibited Sales Methods

Not every form of transaction is considered lawful in Islam. Those who engage in trade as a profession must be aware of and avoid the following prohibited forms of buying and selling, as stated in hadiths:

a) Mulāmasa – A type of sale in which the deal is finalized simply by touching the item, without any opportunity to inspect it. But in Islamic trade, thoroughly inspecting the item is a condition.

b) Munābaza – A sale that is concluded by throwing a garment to the buyer, again without allowing proper inspection or choice.

c) Bay‘ al-ḥaṣāt – A transaction where a sale is finalized by throwing a pebble, such as throwing it at a flock and whichever animal it hits is sold. Such forms are forbidden.

d) Selling fruits before they visibly begin to ripen, or selling crops before their grains mature, is prohibited for both the seller and the buyer.

e) If a fruit still on the tree is purchased and later destroyed by a natural disaster, the seller should not take payment—or the price should be reduced by the amount of damage.

f) It is forbidden to sell the fruits of an orchard for several years in advance as a lump sum, because in Islamic trade, the goods being sold must actually exist at the time of the sale.

g) Selling dry grapes in exchange for the same weight of fresh grapes is prohibited, because the fresh grapes will lose weight when dried. However, selling them for money is permitted.

h) Selling a heap of dates (whose weight or quantity is unknown) in exchange for a fixed amount of other dates is not allowed.

i) Exchanging two unmeasured heaps of food (like grain or fruit), both of which are unknown in quantity, is also prohibited.

(Nasa’i, Buyu’, 23–40)

Avoiding Oaths in Trade

An oath holds legal value in Islam—it serves as a form of evidence, and someone who makes an oath is to be believed. However, there is a risk in this legal principle: people can be deceived through oaths. To prevent such abuses, Islam, both through the Qur’an and the words of the Prophet Muhammad (peace and blessings be upon him), gives special attention to the issue of swearing oaths.

Specifically, making oaths during trade transactions is discouraged. In a hadith narrated by Bukhari and Muslim, the Prophet (peace and blessings be upon him) said: “Avoid excessive swearing in trade; although it may make the product more appealing, it removes its blessings.” (Bukhari, Buyu’, 26; Muslim, Musaqat, 131, 132)

Even when the oath is not false, the Prophet (peace and blessings be upon him) advised giving charity to cleanse the spiritual pollution that may arise from oaths during business dealings. (Ibn Majah, Buyu’, 3, Hadith 2145) If the oath is a lie, then the Prophet’s tone becomes much harsher: “Whoever uses a false oath to make his goods appear more attractive, thereby unjustly taking a fellow Muslim’s wealth, will meet God in a state of divine wrath.” (Muslim, Iman, 220)

He also said such a person would be one of the three whom: “God will not look at on the Day of Judgment, nor speak to them, nor purify them—and they will face a painful punishment.” (Tirmidhi, Buyu’, 5)

According to a narration in Bukhari, the verse from the Qur’an: “Indeed, those who exchange God’s covenant and their oaths for a small price will have no share in the Hereafter. God will neither speak to them nor look at them on the Day of Judgment, nor will He purify them. And they will have a painful punishment.” Surah Al-Imran, 3:77) was revealed regarding a merchant who had sworn a false oath during the time of the Prophet (peace and blessings be upon him). (Bukhari, Buyu’, 27)

Avoiding Debt in Trade

During the early years of the Hijrah, when financial hardship was widespread, the Prophet Muhammad (peace and blessings be upon him) refrained from performing the funeral prayers of those who died with unpaid debts. He actively discouraged borrowing. In fact, when a funeral was brought to him, he would ask: “Does this person have any debts?” If the answer was yes, he would refrain from leading the prayer. (Nasa’i, Jana’iz, 67; Darimi, 2/177; Haythami, Majma‘ al-Zawa’id, 4/127–129) Later, when the Muslim community became more financially stable, the Prophet (peace and blessings be upon him) would personally take on the responsibility of paying off the deceased’s debts and then perform the funeral prayer. (Bukhari, Kafalah, 5; Istiqraz, 11; Fara’id, 9; Sadaqat, 13)

Through this practice, the Prophet (peace and blessings be upon him) emphasized the importance of not leaving this world with unpaid debts. In times of hardship, people are more likely to borrow, but may find it difficult to repay. By discouraging debt, the Prophet aimed to promote self-reliance and hard work over dependence. Today, many fall into extravagance because borrowing is easy and widespread. But this leads to deeper financial struggles. Consider the powerful hadith that seems to capture our current state as a society: “Debt is a collar of humiliation that God places upon the necks of His servants on earth. If God wishes to humiliate someone, He burdens them with debt.” (Hakim, al-Mustadrak, 2/24; Munawi, Fayd al-Qadir, 3/556)

One day, when a companion heard the Prophet (peace and blessings be upon him) say in a prayer, “I seek refuge in God from disbelief and debt,” he asked, “O Messenger of God(peace and blessings be upon him)! Is debt comparable to disbelief?”

The Prophet replied: “Yes, it is.” (Musnad Ahmad, 3/38)

The Prophet (peace and blessings be upon him) frequently sought refuge in God from the burden of debt in his supplications. (Bukhari, Da‘awat, 36; Abu Dawud, Witr, 32; Nasa’i, Isti‘adhah, 7)

Debts Must Be Paid on Time

Paying off debts on time is a matter of fulfilling one’s promise. Especially today, when it’s all too common for people to delay payment despite having the means, such behavior is clearly impermissible in Islam. The Prophet Muhammad (peace and blessings be upon him) called this behavior “oppression”, saying:

“Delaying payment by someone who is able to pay is a form of injustice (zulm).” (Bukhari, Hawalat 1–2; Istiqraz 12; Muslim, Musaqat 33)

In other words, it is a violation of someone’s rightful claim and is considered haram. In fact, it’s a breach of trust so severe that it can even prevent a martyr from entering Paradise, because it involves violating the rights of another person. (Muslim, Imarah, 120; Nasa’i, Buyu’, 98) The Prophet also said: “Whoever takes someone’s property intending to repay it, God will help him repay it. But whoever takes it intending to destroy or squander it, God will destroy him (in this world or the Hereafter).” (Bukhari, Istiqraz 2)

Showing Understanding

Some of the Prophet’s advice regarding trade falls under the theme of compassion, tolerance, and forgiveness. These virtues are expected from both parties—the buyer and the seller. For example, a buyer should ideally pay the price upfront, and if that’s not possible, pay on time without being asked. This is a sign of good character. Similarly, a seller or lender should show kindness and patience toward the buyer or borrower. Let’s look at a few hadiths: “God will admit to Paradise a person who is tolerant and easy-going—whether in buying, selling, collecting debts, or repaying them.” (Bukhari, Buyu’, 16; Nasa’i, Buyu’, 104; Ibn Majah, Tijarat 28; Hakim, Mustadrak 2/56)

“Whoever gives respite to a person in difficulty, or cancels their debt altogether, Allah will shade him under His Throne on the Day of Judgment—on a day when there will be no other shade but His.”

(Tirmidhi, Buyu’, 67) A real-life example shows how far we’ve strayed from the Prophet’s teachings: “In 2003, on the first day of Eid al-Adha, prices were extremely high. I went to the livestock market and found a cow I liked. The seller wanted 2.3 billion lira. I tried hard to negotiate, but he didn’t reduce the price even by 50 million. I walked away. On the third day, I went back. The same man was still there—he hadn’t sold anything, and his animals had caught a cold and were coughing. I bought the same cow for 790 million lira.” Although both transactions were technically legal and aligned with business norms, they violated the spirit of the Prophet’s advice. The situation involved opportunism, greed, and inflated pricing—none of which reflect Islamic ethics in trade.

Generosity

The Prophet peace and blessings be upon him) encouraged the wealthy to be generous, especially merchants. When called upon to give for the sake of God or to help the poor, a merchant should respond with enthusiasm—giving without boasting, purely for God’s sake. He said: “There are two people who may be envied (in a positive sense): One is given the Qur’an and he recites it day and night. The other is given wealth, and he spends it in the path of God, day and night.” (Muslim, Salat al-Musafirin, 266)

Merchants have additional reasons to be generous. The Prophet peace and blessings be upon him) said: “O merchants! In trade, there’s much idle talk and false oaths. So cleanse your business through charity.” (Tirmidhi, Buyu’, 4; Ibn Majah, Musaqat, 27)

Especially in times like today, with rising poverty and unemployment, it’s all the more crucial for businesspeople to be ethically conscious and follow this prophetic guidance—giving generously and purifying their wealth through charity.

Honoring Conditions

One of the Prophet Muhammad’s (peace and blessings be upon him) instructions regarding trade is as follows: “Muslims must abide by the lawful conditions they agree to in trade, as long as those conditions do not make something forbidden into something permissible, or vice versa.” (Tirmidhi, Ahkam 17; Abu Dawud, Aqdiya 3594; Ibn Majah, Ahkam 2353)

Timely Payment of Workers

The Prophet (peace be upon him), who strongly emphasized paying debts without delay, also specifically commanded that wages owed to laborers must be paid promptly and in full: “Pay the worker his wages before his sweat dries.” (Ibn Majah, Ruhun 4) Commentator al-Munawi notes that this phrase is intended to emphasize that speed in payment is obligatory. Even if the worker hasn’t literally sweated, if they request their wage, it should be paid without delay.

Honesty in Measurement and Weight—No Deception

The Qur’an points out that one of the reasons for the destruction of earlier nations was dishonesty in measurement and weighing. For example, the people of Prophet Shu’ayb were warned about this and destroyed when they refused to reform. (Hud, 11:84–85, 94)

Surah al-Mutaffifin begins with a dire warning: “Woe to those who give less [in measure and weight]!” (Mutaffifin, 83:1–17)

It goes on to say that such actions are incompatible with belief in the Hereafter and describes the severe punishment awaiting them.

The Prophet (peace and blessings be upon him) also warned: “Two things have been entrusted to you, which destroyed the nations before you: the scale and the measure.” (Tirmidhi, Buyu’ 9)

Favoring the Customer in Weighing

Islam not only prohibits deceit in measurements but also encourages practices that eliminate even the suspicion of dishonesty. One such principle is to slightly favor the customer when weighing goods.

The Prophet (peace and blessings be upon him) instructed his weigher (the person who measured goods on his behalf): “Weigh and make it heavier (in the customer’s favor).” (Bukhari, Buyu’ 34, Hiba 23; Muslim, Musaqat 115; Tirmidhi, Buyu’ 6) Even today, devout Muslim shopkeepers often slightly overweigh items in the buyer’s favor before packaging them.

Simplicity in Lifestyle

Islam recognizes the legitimacy of living according to one’s means, as seen in the hadith: “God loves to see the blessings He has given reflected upon His servant.” However, the Prophet (peace and blessings be upon him) himself chose a life of simplicity and modesty, even after the Muslim community attained wealth following various conquests. In every aspect—food, clothing, housing—he maintained a minimalist lifestyle. He once said: “My Lord offered to turn the valley of Mecca into gold for me. I said, ‘No, my Lord! I prefer to be full one day and hungry the next, so that when I am hungry, I may turn to You in supplication, and when I am full, I may praise You and give thanks.’” Islamic scholars emphasize that this was not out of necessity but a deliberate choice made by the Prophet (peace and blessings be upon him). (Ibn Hajar, Fath al-Bari, 14/71)

Wealthy individuals who serve as public figures or role models are encouraged to follow this Prophetic example—adopting a lifestyle that avoids provoking envy or rivalry among the poor. Simplicity also serves as a barrier against greed, hoarding, and carelessness in distinguishing between what is lawful and unlawful—destructive traits that Islam seeks to prevent.

Not Being Greedy for Wealth

Islam encourages earning wealth and even praises prosperity—but it warns strongly against greed for money and material things. The Prophet Muhammad (peace and blessings be upon him) said: “Cursed are the slaves of dinar and dirham (gold and silver).”

(Tirmidhi, Zuhd 4)

This is a stern warning to those who refuse to give zakat or charity, or neglect prayer, fasting, and other religious duties, justifying their behavior with excuses like “Work is also worship,” while pursuing money at any cost—even if it means ignoring what is lawful or unlawful. According to the Prophet (peace and blessings be upon him), true wealth isn’t about money, but rather about contentment of the heart: “Wealth is not having many possessions; real wealth is the richness of the heart.” (Muslim 120; Tirmidhi, Zuhd 40)

Avoiding Hoarding (Ihtikar)

The Prophet (peace and blessings be upon him) made an important economic principle clear when he said: “Whoever brings goods to the market (to sell) will be blessed with lawful earnings. But whoever hoards (to create scarcity and raise prices) is cursed.” (Ibn Majah, Tijarat 6; Darimi, Buyu’ 12) In another hadith, the one who hoards is compared to someone who denies the Book of God, while the one who refrains from hoarding is likened to a warrior striving in the path of God. (Jami’ al-Saghir, 3/354) Thus, keeping the market stocked is essential in trade. Withholding goods from sale to drive up prices—i.e., hoarding for profit—is forbidden.

While there are technical discussions around the details of hoarding, the early scholars unanimously agreed that hoarding essential items like food is strictly prohibited. And depending on the time, place, and circumstances, other items can also be considered essential and subject to the same ruling.

Bargaining in Trade

One practice that Islam permits in commerce is bargaining, which is especially evident during sacrificial animal purchases at Eid. Bargaining serves as a way to monitor prices and keep market behavior in check. Once, people came to the Prophet (peace and blessings be upon him) complaining of rising prices and requested him to impose price controls. His response was: “Only God sets prices.” (Tirmidhi, Buyu’ 73; Abu Dawud, Buyu’ 49; Ibn Majah, Tijarat 27)This shows that, except for exceptional circumstances, Islam discourages fixed pricing policies (price ceilings).

A buyer is encouraged to look for quality, value, and fair pricing, while becoming familiar with market rates. Once informed, a person should bargain fairly. If everyone follows this approach, it will encourage sellers to maintain integrity and competitive pricing, thus fostering a healthier market environment. Our sources are filled with narrations about the Prophet (peace be upon him)  and his companions engaging in bargaining. (Bukhari, Manaqib al-Ansar 45; Buyu’ 67; Hiyal 14, 15)

An Example of Ethical Bargaining

Bediuzzaman Said Nursi recounts a famous story about Abdullah ibn Umar. Once, he gave a gold coin to a poor man who visited his home, showing compassion and generosity. Yet, in the market, he was seen fiercely bargaining over a small item worth only 40 paras. Some felt it was unbefitting for the son of a great Caliph. However, Bediuzzaman clarifies the wisdom behind this contrast: The market behavior stemmed from prudence and responsibility, aimed at protecting trust, fairness, and ethical standards in trade—not stinginess. The home behavior stemmed from compassion and spiritual excellence, not wastefulness. The respected Abdullah ibn Umar reportedly explained:

“My conduct in the market arises from financial discipline and protecting the trust and integrity that are the core of trade. My conduct at home arises from the heart’s compassion and the soul’s refinement. Neither is stinginess, and neither is extravagance.” (Lem’alar, Nineteenth Flash, Sixth Subtle Point)

Not Interfering with an Ongoing Transaction

The Prophet Muhammad (peace and blessings be upon him) said: “A person should not try to buy something that his brother is already negotiating to purchase, nor propose marriage to a woman who is already considering someone else—unless the first party gives permission.” (Muslim, Nikah 50; Abu Dawud, Buyu’ 45; Tirmidhi, Nikah 38) This teaching applies to both the buyer and the seller. If a buyer is already in negotiation for a product—even if the sale isn’t finalized—it is forbidden to interfere by offering a better deal. Similarly, proposing to a woman who is already being considered for marriage by someone else is not allowed, unless the first suitor steps aside willingly.

Sadly, this etiquette is often violated today. In some regions, deals agreed upon in the evening are undermined by others offering more money, leading sellers to cancel agreements by morning. Even worse, in areas where rental agreements are rarely put in writing, sayings like “a man’s word is his bond” are ignored. I’ve personally witnessed stories of civil servants who’ve had to move three times in a year, simply because landlords accepted higher offers from others. Such actions reveal deep-rooted issues that contribute to the ongoing troubles in our society.

The Right of Withdrawal (Muhayyerlik)

In Islamic commerce, both buyer and seller must understand the concept of muhayyerlik, the right to cancel a deal. A transaction is not fully binding the moment the agreement is made. According to hadith, it only becomes final when the parties separate after the deal. Until then, either side may withdraw: “The buyer and seller have the right to cancel the deal as long as they have not separated. If the item is sold with honest and clear disclosure, there will be blessings in the transaction for both. But if there is dishonesty or hidden defects, the blessing will be removed.” (Bukhari, Buyu’ 45; Muslim, Buyu’ 47;  Tirmidhi, Buyu’ 26) Of course, exceptions exist—for example, contracts made during travel, on ships, planes, or with a specified time limit. We won’t delve into those details here. What’s important is that both buyers and sellers know their rights as granted by Islam and adhere to those conditions.

Documenting Transactions

Our scholars note that the Prophet Muhammad (peace and blessings be upon him)  would document significant transactions and record agreed-upon terms. (Tirmidhi, Buyu’ 8) This practice is considered a commendable ethic in business. As for debts, the Qur’an itself commands that all debts, whether small or large, be written down:

“When you contract a debt for a fixed period, write it down.” (Qur’an, Al-Baqarah 2:282)

4. Guidelines Concerning Tradeable Goods

Many commercial rulings in Islam are directly related to the nature of the goods being traded. Not all items are considered valid for sale. In Islam, for something to be lawfully tradeable, it must be “muqawwim”—that is, an item that has legitimate value and is permissible to sell. For instance, human organs like the heart or kidneys, or body parts like hair, blood, and bones cannot be bought or sold. This prohibition stems from the fact that the human being is honored and inviolable in Islam. Likewise, items that are inherently forbidden to consume or use cannot be subjects of trade. It’s not just merchants who need to know this; every Muslim should be aware of these guidelines.

Forbidden Goods

A Muslim must understand that anything Islam has declared haram (forbidden) is also haram to trade—meaning it is forbidden to buy or sell such items. This includes things like alcohol and pork. In fact, the Prophet Muhammad (peace and blessings be upon him) listed ten people associated with wine who are all considered sinful: “The one who presses the grapes (for wine), the one who has it pressed, the one for whom it is pressed, the one who transports it, the one to whom it is transported, the one who sells it, the one for whom it is purchased, the one who serves it, the one to whom it is served, and the one who profits from its sale.” (Tirmidhi, Buyu’ 59; Ibn Majah, Ashriba 6)

Haram does not apply only to items that are inherently forbidden in substance, such as alcohol or pork. It also includes wealth or property obtained through illegitimate means, such as bribery, extortion, or theft. Any income earned through these means, and any sale involving such goods, is likewise forbidden. The Prophet (peace and blessings be upon him) strongly warned about this in a hadith: “Whoever knowingly purchases a stolen item shares equally in the disgrace and the sin of that theft.” (Fayd al-Qadir, 6/64)

These two hadiths emphasize how seriously we must take not just obvious haram actions, but also the indirect paths and conditions that lead to them. In fact, the Prophet (peace and blessings be upon him) also warned that indifference toward what is haram or halal will be one of the signs of the end of times: “A time will come when people will no longer care whether what they acquire is halal or haram.” (Bukhari, Buyu’ 7; Nasa’i, Buyu’ 2) To avoid making this text overly lengthy, we won’t go into all the categories of haram goods here, and instead refer readers to detailed scholarly works on the subject.

Doubtful Matters

The Prophet Muhammad (peace and blessings be upon him) did not only command believers to avoid haram, but also to avoid what is doubtful or ambiguous. Life is constantly evolving, and with it comes new practices and products whose status—whether halal or haram—is unclear. In such cases, rather than making personal, unauthorized rulings, the Prophet (peace and blessings be upon him) advised that we should choose caution: “What is halal is clear, and what is haram is clear. But between them are matters that are doubtful and not clearly known. So avoid that which creates doubt until you have clarity.” (Bukhari, Buyu’ 2–5; Tirmidhi, Qiyamah 60)

Although this hadith doesn’t refer specifically to trade, the fact that Imam Bukhari includes it in his chapter on business transactions is a strong indication that the same principle applies in commerce. In today’s world, many modern financial instruments and systems—such as certain bank transactions, commercial practices, insurance schemes, credit cards, and the use of the benefits they offer—can raise serious ethical and religious concerns. Just because something is legally permitted doesn’t automatically make it religiously permissible. Thus, a believer must be guided not only by law, but also by conscience and moral caution. In these cases, until a person can get clear, trustworthy guidance from knowledgeable and reliable sources, it is safest to avoid involvement. As the Prophet (peace and blessings be upon him) taught: “Ask your heart, even if the muftis give you a fatwa.” “Sin is what troubles the heart and causes hesitation.” (Darimi, Buyu’ 2; Musnad Ahmad, 4/228)

Prof. Dr. İbrahim Canan, April – May – June 2003, Issue: 60, Year: 15