Salam
سلم
Pronunciation: sah-LAHM
A forward sale — full payment upfront for goods delivered at a future date.
Definition
A forward sale contract where the buyer pays the full price in advance for goods to be delivered at a future date. The quality, quantity, and delivery date must be clearly specified at the time of contract.
Salam is one of the few exceptions to the general Islamic rule against selling what you do not possess — it was specifically permitted by the Prophet Muhammad (peace be upon him) for agricultural products. In modern Islamic finance, parallel Salam structures (where the bank enters two separate Salam contracts) are used for commodity financing and working capital.
Related Terms
Istisna'aاستصناع
A manufacturing or construction contract with pre-agreed price, specifications, and delivery timeline.
Bay'بيع
A sale contract — the foundational transaction type in Islamic commercial law.
Murabahaمرابحة
A cost-plus sale where the seller discloses the original cost and adds a transparent, agreed-upon markup.
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Quick Answer
Salam (سلم) — A forward sale — full payment upfront for goods delivered at a future date. A forward sale contract where the buyer pays the full price in advance for goods to be delivered at a future date. The quality, quantity, and delivery date must be clearly specified at the time of contract.
Key Takeaways
- A forward sale — full payment upfront for goods delivered at a future date.
- Category: Contracts
- Related: Istisna'a, Bay', Murabaha
- Compare related Shariah-compliant products on HalalWallet
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-06
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