its rulings apply, and the Academy has issued Resolution No. 65 (3/7) concerning istisnaʿ.

Third: If the object of the supply contract is a commodity that does not require manufacture, is merely described as a liability, and is to be delivered at the appointed time, the arrangement may proceed in one of two ways:

(a) The importer pays the entire price in advance when the contract is concluded; in this case the transaction assumes the ruling of a salam sale and is permissible, subject to the Sharʿi conditions set out in Resolution No. 85 (9/2) of the Academy.

(b) The importer does not pay the full price in advance; this is impermissible because it is based on a binding promise between the two parties. The Academy’s Resolution Nos. 40–41 states that a binding promise is tantamount to a contract, making the transaction a sale of one deferred item for another (bayʿ al-kaliʾ bi-l-kaliʾ). If, however, the promise is not binding on one or both parties, it is permissible, provided the sale is concluded through a new contract or by actual delivery.

2 – Tender contracts

First: A tender (munaqasa) is the search for the lowest bid to purchase a commodity or service, in which the procuring entity invites interested parties to submit bids according to specified terms and technical requirements.

Second: The tender process is permissible under Sharia; it is analogous to an auction (muzayada), and the same rulings apply whether the tender is public or restricted, domestic or international, open or sealed. The Academy addressed auctions in Resolution No. 73 (8/4) at its eighth session.

Third: Participation in a tender may be limited to parties that are officially pre-qualified or hold a government licence, provided that such pre-qualification or licensing is based on fair and objective criteria.

And Allah knows best.