The financial institution upcoming rentals their share regarding control to your buyers
Istisna ic contracts such as for example Ijarah (lease) and Musharakah Mutanaqisah (Shrinking Union). Brand new mutual entry to this type of contracts lets finance companies and you may designers in order to mobilise finance and you may mitigate risks. Such, the brand new expansion out-of Madinah Airport within the Saudi Arabia used Istisna and Ijarah as long title financial support plans (Community Bank, 2017). Basic, the project team transfer particular liberties to financiers (lenders) below a beneficial procurement contract (Istisna) together with payment is disbursed according to a decided agenda. The lenders likewise have concession plans (Ijarah) for the venture team and you may located lease accommodations once the money. Eg a plan is sometimes found in financial support rigorous structure methods (Chu and you can Muneeza, 2019).
Below a mixture of Istisna and you can Musharakah Mutanaqisah, the customer as well as the lender carry out a great Musharakah pool underneath the concept out-of shirkahtul-whole milk and you may jointly get into a keen Istisna contract into contractor/designer towards the specified advantage design (Financial Negara Malaysia, 2015a). In the investment months, ownership try gradually gone to live in the customer until complete fee was generated.
step 3.3.1. Exposure doing work in Istisna
Islamic financial institutions that provide Istisna come in contact with exchangeability, working and you will ). (suite…)