Bay' al-Salam

Bay' al-Salam is an Islamic financial concept where buyers purchase goods or assets in advance, paying upfront for items to be delivered later. It is a structured contract that promotes trust and transparency, commonly used in trade. The seller commits to delivering specific goods at a predetermined time and quality, while the buyer provides payment upfront. This arrangement helps facilitate trade, especially in agricultural or commodities markets, by providing liquidity and reducing risks. Bay' al-Salam is permitted in Islam under certain conditions, ensuring both parties' rights are protected and transactions adhere to ethical standards.