Is qurbani cruel to animals?

What qurbani actually is

Qurbani (udhiyah) is the sacrifice of a sheep, goat, cow or camel during Eid al-Adha, in memory of Prophet Ibrahim's willingness to obey Allah. It is not a blood offering to "please" God. The Quran says plainly that the meat and blood don't reach Allah at all; what reaches Him is your sincerity. See What is qurbani and do I have to do it?

The animal welfare rules

The Prophet ﷺ said that Allah has prescribed excellence in everything, so when you slaughter, slaughter well: sharpen your blade and spare the animal suffering (Sahih Muslim 1955). From this, scholars teach:

• The animal must be healthy, not sick, injured or badly lame.
• It should be given water and handled calmly, not dragged or frightened.
• The knife should be very sharp and kept out of the animal's sight.
• One animal shouldn't watch another being slaughtered.
• The cut must be swift, and nothing is skinned or cut until the animal has fully died.

Breaking these rules is a sin, even if the meat is still halal. See How is halal meat slaughtered?

What about stunning and modern farming?

Scholars differ on stunning. Some accept non-lethal stunning if the animal is still alive at the cut; others prefer no stunning at all. In the UK and much of Europe, qurbani is done in licensed slaughterhouses under vet supervision, and many Muslims order it through charities overseas. Honestly, the bigger welfare problem today is often factory farming, which affects all meat, not just qurbani. See Is halal meat cruel?

Where the meat goes

Traditionally, the meat is split into thirds: for your household, for relatives and friends, and for the poor. For many families in poorer countries, qurbani is the only time of year they eat fresh meat. That's a big part of why Muslims see it as an act of mercy, not cruelty.