Praise be to Allah, and may blessings and peace be upon the Messenger of Allah. To proceed:
Saying “Allah yistāhil al-ḥamd” is permissible in terms of meaning, because the word “yistāhil” is used in Arabic with the meaning of “deserves.” Thus, the meaning of the expression is: “Allah deserves praise,” and this is a correct meaning established in Islamic law. However, the more eloquent and appropriate expression when praising Allah تعالى is to say: “Allah deserves praise” using the formal expression yastaḥiq, or “To Allah belongs all praise.”
Arabic linguists differed regarding the use of the word “yasta’ahil” in the meaning of “deserves.” Some rejected this usage, while most linguists permitted it and cited examples of the Arabs using it with this meaning.
Ibn Manzur رحمه الله stated in Lisan al-Arab that some linguists considered using “yasta’ahil” in the meaning of “deserves” to be incorrect. He then quoted Al-Azhari as not rejecting this usage and mentioned that he heard a fluent Arab say to a man who had done him a favor:
“You deserve, O Abu Hazim, what has been granted to you.”
Al-Firuzabadi رحمه الله said:
“Yasta’ahiluhu: he deserved it; this is a sound linguistic usage.”
Al-Fayyumi said:
“It is said: yasta’ahil, meaning ‘he deserves.’”
Scholars also used the word “yasta’ahil” with this meaning. Among them are statements attributed to Shu‘bah, Yahya ibn Ma‘in, and others describing certain scholars as deserving a particular status, or as not being worthy of narration from them.
Therefore, using “yistāhil” in everyday speech with the meaning of “deserves” has a basis in the Arabic language.
If a Muslim says:
“Allah yistāhil al-ḥamd”
what is normally intended is:
“Allah deserves praise.”
There is no doubt that this meaning is correct. Allah تعالى is worthy of praise and commendation because of the perfection of His Names, Attributes, and Actions.
Allah تعالى says:
﴿And He is Allah; there is no deity worthy of worship except Him. To Him belongs all praise in the first life and the Hereafter, and His is the judgment, and to Him you will be returned.﴾ [Al-Qasas: 70]
The Prophet صلى الله عليه وسلم said in his supplication:
“Worthy of all praise and glory; most deserving of what a servant says, and we are all Your servants.”
Thus, Allah تعالى is worthy of praise and commendation and deserving of them.
Although saying “Allah yistāhil al-ḥamd” is correct in meaning, using the more eloquent and clearer wording when praising Allah تعالى is preferable, such as:
These expressions are clearer and less likely to sound unfamiliar or cause some people to think that the word “yistāhil” is inappropriate in this context.
Saying “Allah yistāhil al-ḥamd” is permissible if the intended meaning is that Allah تعالى deserves praise, because “yistāhil” is used in Arabic with the meaning of “deserves.” Nevertheless, the more eloquent and preferable wording when praising Allah تعالى is to say: “Allah deserves praise” using yastaḥiq, or “To Allah belongs all praise.” These are clear expressions whose meaning is established in the Qur’an and Sunnah.
And Allah knows best.