ISTISNA‘ FINANCING OF INFRASTRUCTURE PROJECTS

Muhammad Anas Zarqa
Additional contact information
Muhammad Anas Zarqa: King Abdulaziz University, Jeddah, Kingdom of Saudi Arabia

Islamic Economic Studies, 1997, vol. 04-2, 67-74

Abstract: 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.

Keywords: ISTISNA; FINANCING (search for similar items in EconPapers)
Date: 1997
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.irti.org/English/Research/Documents/IES/130.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:isecst:0140

Access Statistics for this article

Islamic Economic Studies is currently edited by Salman Syed Ali and Anis Ben Khedher

More articles in Islamic Economic Studies from The Islamic Research and Training Institute (IRTI) Contact information at EDIRC.
Bibliographic data for series maintained by IRTI Staff () and ().