What is the Islamic Ruling on Hoarding?

Written by: Al-Sheikh Mubashar Ahmad Rabbani (Hafidhahullah)

Question:

How does Islam view hoarding? Please explain in detail.

Answer:

Hoarding (Dhakheera Andozi) is considered a major sin in Islam.

The Messenger of Allah (ﷺ) said:

“No one hoards except a sinner.”
(Sahih Muslim, Kitab al-Musaqat, Bab Tahrim al-Ihtikar fi al-Aqwat, Hadith No. 1605)

Explanation of Hoarding:

Hoarding refers to withholding essential goods or commodities with the intention of creating scarcity and driving up prices. This practice is strictly forbidden in Islam, as it causes hardship to the community by depriving them of essential items and exploiting them for financial gain.

In today's context, this occurs when individuals or businesses purchase large quantities of goods, reduce their availability in the market, and release them at inflated prices once scarcity has driven demand higher.

Islamic Perspective on Wealth Management:

  • The Companions of the Prophet (ﷺ) used to maintain a reasonable stock of goods, typically enough for a year’s consumption, but they would sell the excess rather than hoarding it to create artificial shortages.
  • Islam encourages fair trade and economic justice to protect the welfare of society as a whole.

Harms of Hoarding in Society:

Artificial scarcity: Hoarding deprives others of their basic needs.
Inflated prices: It leads to price hikes, affecting especially the poor.
Exploitation: It allows hoarders to profit at the expense of the community.
Divine punishment: The Hadith explicitly warns that hoarding is a sin, implying that those who engage in it face Allah’s displeasure.

Conclusion:

Hoarding essential goods to manipulate prices and exploit others is a grave sin in Islam. Instead, believers are encouraged to practice moderation, fairness, and consideration for others, ensuring that everyone has access to basic needs without exploitation.
 
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