Istisna is widely used by Islamic banks and financial institutions to finance the construction of real estate related activity like buildings, warehouses, showrooms, shopping malls, residential towers and villas, as well as manufacturing activity like aircrafts, ships, machines and equipment.
- Financing Concept: Financing where payments are made in stages to facilitate step wise progress in the Manufacturing / processing / construction works
- Sale of the product is transacted before the product comes into existence
- Variation of Istisna contract: Parallel Istisna