In the Name of Allāh,
the Entirely Merciful, the Especially Merciful
Praise is due to Allāh, Lord of the worlds, may the blessings and peace be upon our master Muḥammad, the last of prophets, on his family, and all his companions.
Resolution No. 107 (1/12) Supply and Bidding Contracts
The Council of the International Islamic Fiqh Academy of the Organization of the Islamic Conference, holding its 12th session in Riyadh, Kingdom of Saudi Arabia, on 25 Jumādā al-Ākhirah – 1 Rajab 1421h (23–28 September 2000),
Having examined the research papers submitted to the Academy concerning
Supply and Bidding Contracts,
Having listened to the discussions of the Academy’s members and experts and several Fiqh scholars on the subject,
Resolves
- Supply Contracts
First: A supply contract is a contract under which the first party under- takes to deliver, at specific periods, successive amounts of a well-defined commodity to another party, for a specific sum of money with a total or partial deferred payment.
Second: If the commodity in question is of the type that needs to be manufactured, the contract is Istiṣnāʿ and should abide by the Istiṣnāʿ rulings as stipulated in the Academy resolution no. 65 (3/7).
Third: If the commodity is not of the type that needs manufacturing and if it is a well-defined commodity that should be delivered at a specific future date, the contract may be of two forms:
- When the orderer pays the whole price when signing the contract, this contract will then abide by Shariah rulings on Salam and thus becomes permissible as provided for in the Academy resolution no. 85 (2/9).
- When the orderer does not pay the whole price when signing the contract, this contract becomes not permissible if it is based on the exchange of binding mutual promises (Muwāʿadah) between the two The impressibility of such arrangement, as indicated in the Academy resolution nos. 40–41, is due to the fact that the exchange
of binding promises between any two parties is similar to concluding a contract. Hence, a sale contract concluded in this manner would entail the prohibited practice of selling debt for a debt.
If, however, the promises exchanged between the two parties are not binding on one or both of them, the transaction becomes permissible provided that the sale should be concluded with either a new contract or on delivery.
- Bidding Contracts
First: Bidding means asking for the lowest price offer to purchase a commodity or a service. The party requesting the commodity or service calls for bids from interested suppliers according to given conditions and specifications.
Second: Bidding is permissible in Shariah. It resembles auctioning; and therefore abides by the same rulings, whether bidding is public or limited, internal or external, open or discreet. The Academy issued a resolution no. 73 (8/4) in this regard at its eighth session.
Third: It is permissible to restrict bidding to officially classified bidders or those who obtain government licenses, provided that such classification or licensing is based on equitable grounds.
Indeed, Allāh is All-Knowing.
Read Also
Lastest
Secretary‑General of the Academy Visits the Consulate General of the Hashemite Kingdom of Jordan His Excellency Professor Dr. Qutb Mustafa Sano, Secretary‑General of the Academy, paid an official visit on 29 Sha‘ban 1447 AH, corresponding to 17 February 2026, to the Consulate General of the Hashemite Kingdom of Jordan in Jeddah. His Excellency and his accompanying delegation were received by His Excellency Ambassador Mohammed Salah Sobhi Hameed, Consul General and Permanent Representative of Jordan to the Organization of Islamic Cooperation, who welcomed him warmly and expressed his pleasure at the visit. He praised the distinguished intellectual efforts undertaken by the Academy under His Excellency’s leadership in addressing numerous religious and intellectual issues of concern to the Islamic world, affirming his personal honor in meeting His Excellency again and Jordan’s keenness to strengthen channels of communication and cooperation with the Academy, especially in areas of mutual interest. For his part, His Excellency expressed his deep gratitude and great appreciation to the Ambassador for the warm reception and generous hospitality. He commended the tremendous support, gracious care, and continuous attention the Academy has received from the leadership and people of Jordan since its establishment. He also conveyed his sincere appreciation for the Ambassador’s recent visit to the Academy, affirming the Academy’s full readiness to do everything that would enhance partnership, cooperation, coordination, and communication between the Academy and Jordanian religious and academic institutions. His Excellency was accompanied by Mr. Mohammed Al‑Mundhir Rida Al‑Shawk, Director of the Office and Protocol; Mr. Mohammed Waleed Al‑Idrisi, Director of Media and Public Relations; Ms. Sarah Amjad Badawi, Director of the Department of Family, Women, Children, and the Elderly; and Mr. Amjad Ibrahim Al‑Mansi, Head of the Protocol Section.
