What is Istisna’a in Islamic finance?

What is a necessary condition for the validity of Istisna’a in Islamic finance?

In the Istisna’a transaction, who is the Al-Mustasni'?

What is the role of Al-Sani’ in the Istisna’a contract?

Which of the following is a characteristic of Istisna’a?

In Istisna’a, the contract can be canceled by either party before the commencement of manufacturing work. However, who cannot cancel the agreement unilaterally once the manufacturing work has begun?

What is the key feature of a Build-Operate-Transfer (BOT)arrangement in Islamic finance?

In the Istisna’a mode of financing, when an Islamic bank assumes the role of the requester of manufacturing (Mustasni’), what is the primary purpose?

How can Al Mausouf Fil Thimmah, or Ijarah of Al Mausouf FilThimmah, be defined based on the provided descriptions?

The process flow of Istisna’a can be understood through the following example:

1. A customer approaches an Islamic bank requiring financingfor manufacturing of some items.

2. The Islamic bank obtains full description of the work tobe done with exact specifications.

3. Islamic bank consults a third-party contractor andobtains cost estimates of the project.

4. Upon agreement of the terms, including mode of paymentand delivery date, an Istisna’a contract is signed between the customer and theIslamic bank.

5. At the same time a Parallel Istisna’a contract isseparately signed with the contractor containing all the terms agreed upon.

6. On the due date, contractor delivers the manufacturedgoods to the Islamic bank, which in turn hands them over to the customer.

7. The difference in amount received from the customer andthe amount paid to the contractor is the Islamic bank’s profit.

What is the correct sequence of steps in the Istisna’a process flow, based on the provided example?

Which of the following statements accurately captures a key difference between Salam and Istisna’a in Islamic finance?