Impact of the Market Brokerage System in Trade: A Hadith-Based Analytical Study

Abstract

This article explores the concept and functioning of the brokerage system (Ārhat) within market trade, particularly from an Islamic perspective. It begins by establishing the legitimacy of brokerage through evidence from Islamic jurisprudence and scholarly consensus, highlighting its foundational role in facilitating commerce. The study then outlines the positive impacts of the brokerage system, such as easing transactions, bridging the gap between buyers and sellers, and enhancing market accessibility. However, the article also critically examines the negative consequences associated with misuse of the system, including exploitation, price manipulation, and unjust profit-taking. In response, it presents solutions rooted in the teachings of the Prophet Muhammad ﷺ, offering guidance from authentic Hadiths to reform and regulate the brokerage system in accordance with Islamic ethical standards. This analytical study aims to strike a balance between the practical utility of brokerage and the moral framework of Islamic trade principles.