Is It Permissible to Operate a Print and Packaging Business with Outsourced Production?

Answered by Shaykh Muhammad Carr

Question

Is it permissible to operate a print and packaging business where one takes orders, outsources the production to processing units, and then sells the finished products to customers?

Answer

In the Name of Allah, the Most Merciful and Compassionate.

Thank you for your question.

Under Islamic Sacred Law (Shari‘a), operating a print and packaging business in which you take orders, outsource production, and then sell the finished products to customers is permissible.

This falls under a forward sale contract (salam), where you are selling a specified item (mawsuf) to the customer even though it does not yet exist at the time of the sale. This is permissible in the Shafi‘i school. [See, Khatib, Mughni al-Muhtaj]

This arrangement consists of two distinct transactions, each independent of the other:

• The sale of the specified item to the customer
• The production of the item

The first transaction involves selling a specified item (mawsuf), while the second pertains to an employment and delivery agreement. Both are permissible, provided their respective conditions are met.

I pray this is of benefit, and may Allah guide us all.
[Shaykh] Muhammad Carr
Checked and Approved by Shaykh Dr. Muhammad Abu Bakr Badhib

Shaykh Muhammad Carr has dedicated his life to studying and transmitting our beautiful deen. His studies have taken him around the globe, where he has benefitted from many luminaries. Under the guidance of his teachers – Shaykh Taha Karan, Shaykh Yaseen Abbas, Shaykh Muadh Ali, and many others – Shaykh Muhammad has grown to appreciate the beauty and benefits of diverse scholarship. He completed his memorization of the Qur’an at Dar al-Ulum Zakariyyah in September 1997 and received an Alimiyya Degree in 2006 from DUAI (Darul Ulum al-Arabiyyah al-Islamiyyah). He is also affiliated with Masjid Auwal in Bo Kaap, Cape Town (the oldest mosque in South Africa), where he serves as a co-imam, and Dar Al-Safa, where he has taught since 2018. As a teacher, he imparts the wisdom of our heritage and tradition by opening the door to students. As an imam, he has the unique opportunity to serve his community in daily life.

In addition to his roles as a teacher and imam, Shaykh Muhammad Carr has contributed significantly to the administrative and advisory aspects of Islamic institutions. Since 2023, he has served as the Administrative Director at The Imam Kurani Institute, contributing to the institution’s growth and development. He continues to pursue traditional Islamic Sciences, possessing a keen interest in Islamic Contract Law and Finance. Shaykh Muhammad has been a Shari‘a Board Member for Islamic Asset Management & Insurance Companies since 2001, aligning financial practices with Islamic principles.