Shariah Transactions: Detailed Horizontal Maps
Left-to-Right Flow with Mechanisms & Ethics
Istisna'
Mechanism
Core Concept
Manufacturing Contract
Seller makes/builds goods for future delivery.
Vs. Bai' Salam:
Advance payment NOT required; flexible installments.
Infrastructure Boost
Key Sectors
Housing (Residential).
Public Works (Highways/Bridges).
Bank's Role (Intermediary)
1st Istisna':
Customer & Bank (Financing).
2nd Istisna':
Bank & Contractor (Construction).
Economic Stability
Cash Flow:
Progress payments help contractors survive.
Production:
Links supply directly to demand (no waste).
Certainty:
Fixed details reduce abandonment risk.
Ethics in
Istisna'
Transparency (As-Sidq)
Avoid Gharar
Clear specs (Quality/Quantity/Workmanship).
Detailed written contracts (No ambiguity).
Trust (Amanah)
Quality:
Manufacturer must meet agreed specs.
Integrity:
No cutting corners on materials.
Rejection Right:
Buyer can reject if specs fail.
Promises (Awfoo)
Irrevocable:
Bound by contract once signed.
Timeliness:
Respecting delivery dates (Religious duty).
Justice (Adl)
Fair Pricing:
Preventing harm (Zulm) to either party.
Mutual Benefit:
Win-win for buyer & maker.