Istisna for construction
The financier commissions the building for a price paid in stages against certified progress.
Real economy
Real estate and construction
Buildings are financed before they exist; the contract has to follow each stage.
Developers finance construction through istisna and lease completed buildings through ijarah, sometimes funded by sukuk. Stage payments, completion certificates and leases need to line up. IslamicOpenFinance™ keeps stages, payments and leases on one contract model.
Financial products
What you build on IslamicOpenFinance™
Parallel istisna
The financier's contract with the contractor is linked to its contract with the developer, each with its own schedule.
Ijarah on completion
Completed units are leased with rentals, maintenance duties and takaful recorded.
Project escrow
Buyer payments are held and released against milestones.
Sukuk funding
Leased assets can back sukuk, with rentals feeding periodic distributions.
Value chain
The actors in this chain
IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.
DeveloperContractorIslamic bankBuyers and tenantsSurveyorSukuk investors
Typical flow
A typical flow, step by step
- Commission (istisna)
- Stage payments
- Completion certificate
- Handover
- Lease (ijarah)
- Rentals
- Distribution
Live demo
See it in the terminal
Completed units leased on ijarah, with the lessor's obligations and rental dates on business days (demo). Demo data
DemoAll institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.
Glossary