Salam:

Salam:
 A salam transaction is the purchase of a commodity for
deferred delivery in exchange for immediate payment. It
is a type of sale in which the price, known as the salam
capital, is paid at the time of contracting while delivery
of the item to be sold, known as subject matter of
salam, is deferred.

 Uses:
 Purchase of commodities (financing for production
of agricultural commodities/ minerals)
 Liquidity requirements of sugar mills, etc.
Salam: Shariah Legitimacy
 Allah says “O you who believe when you deal with each other,
in transactions involving future obligations in a fixed period
time, reduce them to writing” [2:282]

 Ibn Abbas reported, the Prophet (PBUH) came to Medina

and found that people were selling dates for deferred delivery
(salam) after a duration of one or two years. The Prophet
(PBUH) said: “whoever pays for dates on a deferred delivery
basis (salam) should do so on the basis of specified scale and
weight” [Bukhari and Muslim]
Salam: Shariah Legitimacy
Wisdom of allowing Salam
 Beneficial for both seller and purchaser: seller or the
farmer can get capital to grow the crop and get better
produce of the crop, while the buyer can be sure of its
stocks and price.
Parallel Salam