Examining the Viability of Istisna for Project Financing: An Economic Perspective
Examining the Viability of Istisna for Project Financing: An Economic Perspective
Author(s): Muhammad Najihuddin Nasucha, Riazuddin Ahmed, Galad Mohamed BarreSubject(s): Islam studies, Financial Markets
Published by: New Millennium Discoveries Ltd
Keywords: Istisna; Viability; Risk Management; Project Financing; Constraints; Infrastructure Development; Islamic Project Finance;
Summary/Abstract: The objective of this paper is to examine the viability of Istisna for project financing, with a special focus on its economic aspects and the risks associated with the said contract. This paper also aims to investigate the challenges faced by Islamic banks in adopting Istisna as a mode of project financing. This paper first provides an overview of Shariah-compliant project financing; it then discusses the characteristics of Istisna and barriers to Istisna implementation for construction and infrastructure project development. Economic and general legal considerations are key factors that influence the development of Istisna as project financing. This paper also seeks to explore ways to increase the use of Istisna.
Journal: International Journal of Management and Applied Research
- Issue Year: 6/2019
- Issue No: 4
- Page Range: 259-270
- Page Count: 12
- Language: English
