SS 11 – Istisna’a and Parallel Istisna’a

The objective of this standard is to explain the Shari’ah rulings and lim- itations applicable to Istisna’a and parallel Istisna’a transactions in respect to concluding an Istisna’a contract, the subject-matter of Istisna’a and changes to the contract. The standard also explains issues relating to the execution of the contract and the supervision of its execution.

Scope of the Standard

The standard covers Istisna’a and parallel Istisna’a transactions whether the Institution is acting as an ultimate purchaser or is acting as a manufacturer or as a builder for construction.

2. Istisna’a Contract