Ruling on Selling Goods with a Fixed Profit Margin

Authored by Dr. Muhammad Zia-ur-Rahman Azmi (رحمه الله)

Definition and Permissibility:​

If a person purchases goods at a fixed quantity or agreed proportion for a known price and takes full possession of them, it is permissible for them to resell the goods at an undefined profit margin.

Conditions for Permissibility:​

1. Ownership and Possession:
   
   • The seller must own the goods and take full possession of them before selling.
2. Transparency in the Agreed Price:
   
   • Both parties must have knowledge of the original price upon which the agreement is based.
3. Undefined Profit Margin Allowed:
   
   • While the profit margin does not need to be fixed, the initial terms and conditions of the transaction must be transparent and agreed upon by both parties.

This ensures fairness and compliance with Islamic guidelines on trade and business transactions.

—Referenced from the Permanent Committee for Islamic Research and Ifta (Al-Lajnah Ad-Daimah), Fatwa No. 6543.