Is it permissible to participate in a tender?

Tender (bay'u al-muzayada) is a process where candidates compete to provide services, perform work, or supply goods, and the client sets certain conditions while participants submit their offers accordingly. Both legal entities and individuals can participate in tenders.

The permissibility of tenders is supported by the following hadith: "One of the Ansar came to the Prophet (ﷺ) and asked for financial or food assistance. The Messenger of Allah (ﷺ) asked him: 'Do you have anything at home?' He replied: 'Yes, I have a mat—sometimes we wear it, sometimes we lay it out—and a drinking vessel.' The Prophet (ﷺ) said: 'Bring them to me.' The man brought his belongings. The Prophet (ﷺ) put them up for auction, saying: 'Who will buy these items?' Someone offered one dirham. The Prophet (ﷺ) asked: 'Who will offer more than one dirham?' Another man offered two dirhams, and the Prophet (ﷺ) sold the items to him for two dirhams. Then the Prophet (ﷺ) gave the two dirhams to the Ansari and said: 'Buy food for your family with one dirham, and with the other, buy an axe and earn your living by chopping wood.' The man disappeared for fifteen days, during which he earned money by chopping wood. He returned and presented fifteen dirhams to the Prophet (ﷺ). The Prophet (ﷺ) said: 'Use half of this money to buy food for your family and the other half for clothing.' Then the Prophet (ﷺ) said: 'This is better than begging, which is only permissible for those in extreme poverty, those heavily in debt, or those in dire need.'" (Ibn Majah).

However, tenders must be conducted according to certain conditions:

• The goods or services must be halal and permissible according to sharia.

• All transactions must be conducted in ways permitted by sharia. Gambling and trading on credit are not allowed.

• The competition must be open and fair. Practices such as restricting participants, bribery, or deception are prohibited by sharia.

• The purpose of the tender should not be to harm others, but to engage in lawful trade.

Prepared by Hasan AMANKUL

“Munara” newspaper, No.10, 2021