Is dealing with a company that buys yarn materials from me for cash and then sells them back to me on credit with a high-profit margin considered usury (riba) or Tawarruq, knowing that this company does not operate and does not own the materials, and its owners are my partners in my own company?

The transaction mentioned can be structured as a Murabaha sale for one who commands a purchase (بيع مرابحة للآمر بالشراء), which is permissible with its stipulated conditions. The problem lies in the fact that the owners of the selling company are the same as the owners of the purchasing company, with a difference in price. This resembles a Bay' al-Inah (بيع العينة) in reverse, concerning which there is a difference of opinion among jurists. Some consider it impermissible, viewing it as a means to usury, while others permit it, and some permit it as long as it is not a legal stratagem (حيلة).

Despite the disagreement, distinguishing between the financial liability of the company as a legal entity and the personal liability of its owners is important. Some jurists, such as Malik and Al-Kasanī, permitted the owner of the capital to buy from the Mudarib (investing partner) and vice versa, considering the Mudaraba capital as the property of an outsider in terms of proprietary disposition.

Contemporary jurists believe that the theory of personal liability can evolve to include companies and institutions, emphasizing the importance of granting a company legal personality and independent liability to achieve public interest and rectitude in transactions, as long as there is nothing in Sharia to prevent it.