Istisna' financing of infrastructure projects

الملخص EN

Projects that do not generate explicit income cannot be possibly financed on a profit-sharing basis.

A suitable interest-free alternative method of financing is presented here, based on istisna‘ sale contract (commissioned or pre-ordered productio).

Various aspects of using istisna‘ as a financing tool for infrastructural projects are discussed, including: (a) the illiquidity of the resulting financial claims and its implications, (b) suitability for financial intermediaries, and (c) the possibility of indexation of the resulting financial claims and their use as a monetary policy tool.