Role of Sukuk al-Istisna’ in the economic development of Islamic capital

• Chaibou Issoufou Department of Economics and Law, University Kuala Lumpur, Business School

Abstract

This paper examines the legality of Istisna’ contract, similarities and dissimilarities between Istisna’ contract and Salam as well as Ijarah via a qualitative method which is based on the view of prominent Muslim scholars. As a result, Istisna contract, in general, is a vital contract which can contribute a significant role in the economic development of a country. In conclusion, Sukuk al-Istisna is the crucial element of financing a project which will be carried out in the future as the issuer of Sukuk al-Istisna’ can conclude a parallel Istisna’ contract on an asset which will be manufactured in the future.