Why is Murabaha not considered Riba?

Sources

• ✓ 2:275 · Al-Baqara

  2:275 · Muhammad Marmaduke Pickthall

  ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَٰلِدُونَ

  Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein.

• ✓ Tafsir Ibn Kathir on 2:275

  Sunni

  Tafsir Ibn Kathir · 2:275

  When Allah mentions the righteous—those who faithfully give alms, pay zakat, and excel in acts of kindness and maintaining ties of kinship at all times and circumstances—He then moves on to describe those who consume usury (riba) and unlawfully seize people's wealth through various deceptions. Allah describes their state on the Day of Resurrection when they rise from their graves. He says: “Those who consume riba will not stand except as one stands whom the devil has driven mad by [his] touch.” This signifies that on the Day of Judgment, those who engaged in usury will not rise properly but will be unstable, disoriented, and agitated as if possessed or suffering a severe affliction caused by Satan, reflecting their disgraceful and rejected resurrection. Ibn Abbas said that the consumer of riba will be resurrected insane and strangled; this report is transmitted through Ibn Abi Hatim and others like Awf ibn Malik, Sa’id ibn Jubayr, Al-Suddi, Al-Rabi ibn Anas, and Muqatil ibn Hayyan, indicating general acceptance of this meaning. Several companions and scholars, including Abdullah ibn Abbas, Ikrimah, Sa’id ibn Jubayr, Al-Hasan, Qatadah, and Muqatil ibn Hayyan, interpreted the verse to mean that those who consume riba essentially will not stand on the Day of Resurrection. Ibn Abi Najih, Mujahid, Al-Dhahhak, and Ibn Zayd conveyed similar understandings. It is also related from the chain of Ibn Abd Allah ibn Mas’ud that he recited the verse as explicitly mentioning “on the Day of Resurrection,” emphasizing the temporal context of their unstable rising. Ibn Jarir records a narration from Ibn Abbas that the phrase “Take up your weapon for war” is said to the riba consumer on the Day of Judgment, highlighting confrontation and accountability. Further illuminating this, Abu Sa’id narrated about the Prophet’s Night Journey where he passed by people whose bellies resembled houses, with serpents coming from their bellies—these were identified as the riba consumers. Al-Bayhaqi narrated this in detail. Ibn Majah reports a hadith from Abu Huraira where the Prophet ﷺ saw a people with bellies like houses, full of serpents, identified as those who consumed riba. A lengthy hadith narrated by Samura ibn Jundub describes a scene where a man swimming in a river made of what seems like blood is attacked by another who feeds him stones; this was interpreted as the punishment of the riba eater. The verse continues: “That is because they said, ‘Trade is [just] like riba.’ But Allah has permitted trade and forbidden riba.” This addresses the objection of those who tried to justify riba by likening it to lawful trade. Ibn Kathir explains that this claim is an argument they made attempting to oppose God’s rulings. They do not sincerely argue by valid analogy since disbelievers reject the lawful basis of trade that Allah established and allowed in the Qur’an. If this had been a proper analogy (qiyas), they would have said riba is like trade—and thus both should be either permitted or forbidden. But they said, in error, that trade is like riba, which is false as Allah distinguished between the two by allowing trade and forbidding riba. This phrase—“And Allah has permitted trade and forbidden riba”—may be a rebuke, affirming Allah’s wisdom and knowledge in setting these laws and that no one can overturn His command. He permits what benefits His servants and forbids what harms them, showing mercy greater than that of a mother to her child. Thus, Allah says: “Whoever receives admonition from his Lord and stops, then for him is what has passed, and his affair is with Allah.” This means anyone who, having heard the command forbidding riba, refrains from it fully and immediately upon the law’s arrival, their past dealings are forgiven. Said ibn Jubayr and Al-Suddi said this refers to acceptance of the past riba consumed before the prohibition. Ibn Abi Hatim narrates a report that Aisha advised a woman concerning a servant she had bought back for less than the original price. The woman was told this purchase voided the servant’s support of jihad unless the former owner repented. This illustrates how the forgiveness of previous usury is conditional and known. This hadith and others serve to ban similar transactions like the 'ayna' sale (a type of debt-for-debt exchange) based on hadith in the book of rulings. The verse continues: “But whoever returns to [dealing in riba]—those are the companions of the Fire; they will abide eternally.” Whoever repeats the act of riba after the clear prohibition is incumbent upon him the punishment and the proof against him is established. Abu Dawud relates a hadith in which, upon revelation of this verse, the Prophet ﷺ said: “Whoever does not give up usury, let him beware of war from Allah and His Messenger.” Al-Hakim graded this hadith as authentic. The forbiddance includes various forms of usury transactions, namely mubashara (sharing the produce of the land), muzabana (buying dates while they are still on the tree in exchange for dates on the ground), muhaqala (buying grain in the field), and similar transactions that are forbidden to eliminate the causes leading to riba, due to uncertainty in exchange and inequality before the harvest. Jurists consider ignorance of these analogous matters equal to the reality of the original usury rule, and thus forbidden. This reflects Allah’s statement that “above every possessor of knowledge is one more knowledgeable.” The topic of riba is complex for many scholars. The Caliph Umar ibn al-Khattab expressed a wish that the Prophet had entrusted certain treaty obligations to them regarding issues with impurity, mortality, and some aspects of riba. This indicates the seriousness and intricacy of rulings related to hidden or subtle forms of riba. The Prophet ﷺ also said: “The lawful is clear and the unlawful is clear, and between these are doubtful matters. Whoever avoids the doubtful has rendered his religion and honor safe, but whoever falls into doubtful matters falls into the unlawful like a shepherd who grazes around a forbidden pasture.” Another hadith complements this by stating, “Leave what makes you doubt for that which does not make you doubt.” Al-Thawri narrates from Ibn Abbas that the last verses revealed in the Qur’an concerned the prohibition of riba. Ahmad ibn Hanbal narrates that Umar said the verse on riba was among the last revealed, and the Prophet passed away before fully explaining it to them, so they abandoned riba and doubtful matters. Ibn Majah narrates from Abdullah ibn Mas’ud that the Prophet ﷺ said, “Riba has seventy or seventy-three gates, the least severe of which is to marry one’s mother, and the worst of riba is the flesh of a Muslim man.” A hadith narrated by Abu Huraira reports that the Prophet ﷺ said a time will come when people will consume riba, and whoever does not consume it will be affected by its dust. The prohibition also extends to intermediaries or means leading to prohibited acts. Ahmad records from Aisha that when the verses forbidding riba were revealed at the end of Surah al-Baqarah, the Prophet forbade trade in wine and related commerce. Scholars explained that once riba and its channels are forbidden, all linked trade is likewise forbidden, similar to the hadith condemning those who beautify forbidden fats and eat their proceeds. Further narrations from Ali, Ibn Mas’ud and others include the curse upon the riba consumer, his messenger, two witnesses, and the scribe. This applies to contracts that outwardly appear lawful but contain usurious elements; intentions matter most, as Allah judges by hearts and actions, not by outer forms. Ibn Taymiyyah authored a detailed book refuting attempts at permitting means leading to usury, emphasizing the prohibition of all methods facilitating wrongdoing, affirming this with the wisdom of Islamic law. In conclusion, the verse and the related reports communicate the imperative to avoid riba and all its forms, depicting the dire consequences for those who persist, while assuring forgiveness for those who repent immediately after the command’s revelation.