How can there be recompense and reward if Allah Almighty is the One who guides through the guidance of explanation (Hidayat al-Bayan) and the guidance of divine grace (Hidayat al-Tawfiq)?

It was part of Allah’s wisdom to create for humankind a will and a choice, by which they determine their destiny, and reward and punishment are based on this choice. Guidance and misguidance are in Allah’s hand; He guides whom He wills by His grace and mercy, and misguides whom He wills by His justice and wisdom. He knows best where His grace and justice are due: {He is most knowing of who has strayed from His way, and He is most knowing of who has been guided} [An-Najm: 30]. There is no contradiction between the Sacred Law and divine decree. Allah decreed disbelief and sins and forbade them, and legislated faith and acts of obedience. Servants are the ones who perform these actions by their own choice, and they are recompensed for their actions, not for divine decree. Allah’s recompense of the righteous with Paradise is by His grace and mercy, because their deeds were by Allah’s enablement, and Allah’s blessings upon them in this world far exceed their deeds.