Istisna

Istisna is a Islamic financial contract used for manufacturing or construction projects, where a buyer commissions a seller to produce or build something according to agreed specifications. The payment terms can be phased, such as partial payments during different stages of completion. This arrangement allows projects to be funded based on trust and transparency, complying with Shariah principles by avoiding interest (riba). Essentially, Istisna facilitates the financing of customized goods or infrastructure, with the focus on mutual consent, clear terms, and ethical dealings in the execution of the contract.