Abu Dawud

Benefits and Issues:
Since giving and receiving gifts creates closeness and affection in hearts, therefore, one should avoid freely exchanging gifts with disbelievers and polytheists. However, where there is a Shari‘ah or political benefit, there is no harm in accepting a gift. For example, if a disbeliever wishes to express humility towards Muslims, or there is hope that through such association he will come closer to Islam, or may even accept Islam, etc. Imam Bukhari has established this in Sahih Bukhari, in the Book of Gifts, under the chapter “Accepting Gifts from Polytheists” and the chapter “Giving Gifts to Polytheists.”

➋ The reason for not accepting the gift from ‘Iyad bin Himar radi Allahu anhu appears to be that the intention was to encourage him to embrace Islam. The Prophet sallallahu alayhi wa sallam accepted the gifts of Ukaydir of Duma and Najashi, because there was a strong hope of their embracing faith.

➌ ‘Iyad bin Himar radi Allahu anhu later accepted Islam and kept the company of the Messenger of Allah sallallahu alayhi wa sallam.

Explanation:
1:
There is no doubt that the original ruling is not to accept gifts from polytheists; however, for a particular or general benefit, it may be accepted. Thus, some scholars have reconciled the hadiths regarding accepting and not accepting such gifts in this way: those who wished to give gifts out of friendship and alliance, the Prophet (sallallahu alayhi wa sallam) did not accept their gifts, and those in whose hearts affection towards Islam and its followers was observed, their gifts were accepted. (And Allah knows best)