Islam encourages giving and receiving gifts and presents from one another. The Prophet (p) said, “Exchange gifts, for it increases love.” Bukhari, Adab al-Mufrad, hadith no. 594.
It is a time-honoured tradition of Muslims to give and receive gifts, irrespective of the religion of the recipient and numerous hadith narrations abound to this effect.
For example, Mujahid narrated that Abdullah ibn Amr ibn al-‘As slaughtered a sheep and said, “Have you presented a gift from it to my neighbour, the Jew, for I heard the Apostle of Allah (p) say, ‘Jibril kept on commending the neighbour to me such that I thought he would make him an heir’?” (Abu Dawood, hadith no. 2446 in Alim 6.0) Umm Salamah also narrated that the Prophet told her, “I have sent al-Najashi [the Abyssinian king] a robe and some milk (by-product).” Ahmad, al-Tabarani; cited in Yusuf al-Qaradawi, The Lawful and the Prohibited in Islam, IIFSO, Kuwait, 1992, p.343.
It is also reported that the Prophet (p) gave and accepted gifts from numerous other non-Muslim leaders and kings.
Commenting on the gifts the Prophet (p) presented to people of other faiths, Al-Sarakhsi said, “Offering gifts to others is from among good morals as per the words of the Prophet (p), ‘I was sent to establish good manners.’ Therefore, scholars understood that exchanging gifts is recommended among Muslims and non-Muslims alike.” Al-Sarakhsi, Sharh Al-Siyar Al-Kabir, vol. 1, p. 96.
True friendly relations entail reciprocal exchanges of gifts. Accordingly, receiving gifts from people of other faiths is also permissible to a Muslim. Salim Al-Bahnasawy notes a well-known case from the lifetime of the Prophet (p): “When Salman Al-Farisy first came to Al-Medina, he was not yet a Muslim. He knew that the Prophet (peace be upon him) was dignified and would not accept charity (sadaqah). He entered upon the Prophet (p) and said, “I respect your dignity and I present a gift to you, not a Sadaqah (charity).” The Prophet (peace be upon him) extended his hand and ate, and so did the Companions. Al-Hafiz Al-Iraqi commented on this saying, “This hadith shows the lawfulness of accepting gifts from a polytheist as Salman had not embraced Islam at that time.” Salim Al-Bahnasawy, Non-Muslims in the Shari’ah of Islam, Dar an-Nashr lil-Jami’at, Egypt, 2004, p.68, quoting Tafsir al-Qurtubi, vol.11, p.112.
While charity (sadaqa) is often given as an assistance to those in need, gifts and presents are usually associated with friendliness and strengthening interpersonal relations.