Is It Permissible to Sell a Haram Business I Intend to Leave It, and Use the Proceeds for a Lawful One?
Answered by Shaykh Irshaad Sedick
Question
Is it permissible to sell a haram business I intend to leave, if I sincerely repent and use the proceeds only for my needs while transitioning to a lawful career?
Answer
In the Name of Allah, the All-Merciful, the Especially Merciful. May Allah guide every dimension of our lives to that which pleases Him. Amin.
Selling What is Unlawful Is Unlawful
According to Sacred Law, selling a haram (prohibited) business or any enterprise whose core activity is unlawful is not permissible. The Prophet (Allah bless him and give him peace) said, “When Allah prohibits a thing, He also prohibits its price” [Abu Dawud]. This principle extends to businesses whose income derives from prohibited means, such as selling alcohol, usurious lending, or operating gambling facilities.
If a business is impermissible to operate, then transferring it to another through sale does not change the essential ruling: one is not permitted to profit from that which Allah has forbidden. Doing so would facilitate sin for another and benefit from prohibited earnings, both condemned in Sacred Law.
Allah (Most High) says:
“And do not consume one another’s wealth unjustly or send it [in bribery] to the rulers in order that [they might aid] you to consume a portion of the wealth of others while knowingly committing sin.” [Quran, 2:188]
Repentance and Responsibility
Your sincere intention to leave the haram trade is praiseworthy, and may Allah accept your repentance. However, sincere tawba (repentance) entails:
- Ceasing the sinful act,
- Feeling remorse,
- Resolving never to return to it, and
- Undoing the wrong, where possible. [Nawawi, Riyad al-Salihin]
Selling the business does not undo the harm; rather, it may continue the harm under new ownership. If you can’t reverse the business model to something permissible before selling it, then it would be better not to profit from it.
What Can Be Done Practically?
If the business has any lawful assets (e.g., equipment, inventory not inherently haram), these can be sold, and the proceeds may be used, especially if you are in need. However, profits generated from impermissible services or goods should not be used for personal benefit. Scholars advise that such funds be disposed of, preferably in charity, without the intention of reward.
Please consult the details here.
Baraka and Starting Anew
Beginning a new, halal venture with unlawful wealth is like planting seeds in poisoned soil. The Prophet (Allah bless him and give him peace) said: “Verily, Allah is pure and only accepts what is pure.” [Muslim]
Starting with lawful means, even if little, will carry the baraka (blessing) that forbidden wealth will never carry.
May Allah open for you doors of halal sustenance and bless your efforts with baraka and ease.
And Allah knows best.
[Shaykh] Irshaad Sedick
Checked and Approved by Shaykh Faraz Rabbani
Shaykh Irshaad Sedick was raised in South Africa in a traditional Muslim family. He graduated from Dar al-Ulum al-Arabiyyah al-Islamiyyah in Strand, Western Cape, under the guidance of the late world-renowned scholar Shaykh Taha Karaan (Allah have mercy on him), where he taught.
Shaykh Irshaad received Ijaza from many luminaries of the Islamic world, including Shaykh Taha Karaan, Shaykh Muhammad Awama, Shaykh Muhammad Hasan Hitu, and Mawlana Abdul Hafeez Makki, among others.
He is the author of the text “The Musnad of Ahmad ibn Hanbal: A Hujjah or not?” He has been the Director of the Discover Islam Centre, and for six years, he has been the Khatib of Masjid Ar-Rashideen, Mowbray, Cape Town.
Shaykh Irshaad has fifteen years of teaching experience at some of the leading Islamic institutes in Cape Town. He is currently building an Islamic podcast, education, and media platform called ‘Isnad Academy’ and has completed his Master’s degree in the study of Islam at the University of Johannesburg. He has a keen interest in healthy Prophetic living and fitness.
