This story remained in the creed of Sudanese circulated by the common, however it is from the lies of the Sufis. We find that this story is narrated in the Sudanese media: The read, the heard, and the visual. They believe that Al Khadir whose story was mentioned in Surat Al Kahf with Moses, the interlocutor, (Peace be upon him) is still alive and walking in markets with worn out clothes, bare-footed, having repellent diseases, and practicing unpleasant and illegal actions. When you see him in this condition, honor him, give him money, bring him closer to you, and do not criticize his actions because the one who does so, his money increases and his commence grows, however the one who refuses to do so, his money decreases and loses his commerce.
The truth is if Al Khadir had been alive as they claim, he would have come and followed Prophet Muhammad (peace be upon him) because he is the best of creation and the seal of Prophets; The Prophet (peace be upon him) said: “If Moses was alive, he would follow me.” And the interlocutor is better than Al Khadir.
Second, If we believe that he is still alive and he is a righteous servant, we will see him in masjids because they are the most beloved spot on earth. Allah (may He be Exalted) says: “The Mosques of Allâh shall be maintained only by those who believe in Allâh and the Last Day, perform As-Salât (Iqâmat-as-Salât), and give Zakât and fear none but Allâh. It is they who are on true guidance.” [Surat At-Tawbah: 18].
Third, The most dislikable spots are markets. The Prophet (peace be upon him) said: “Do not be the first to enter the market nor the last to leave it because Satan appoint him arms in markets, Moreover, it is full of idle talks and foul language, so it is possible that a righteous servant would live therein?
These stories and others were fabricated by Sufis to eat up people’s money without right. Unfortunately, this lie is widespread in most Muslim countries. May Allah grant you success, and I ask him to preserve you.