The financial institution after that apartments its display regarding ownership into the buyers

Istisna ic contracts eg Ijarah (lease) and Musharakah Mutanaqisah (Diminishing Connection). The latest joint entry to this type of agreements allows banking institutions and you can builders in order to mobilise financing and you can mitigate risks. Eg, the extension out-of Madinah Airport during the Saudi Arabia utilised Istisna and you can Ijarah provided that term investment plans (Industry Bank, 2017). Basic, the project organization transfer specific rights so you can financiers (lenders) not as much as good procurement contract (Istisna) and the percentage are paid based on an agreed schedule. Lenders likewise have concession plans (Ijarah) into the endeavor company and located lease apartments while the money. Such as for example an arrangement is normally found in money extreme system projects (Chu and you can Muneeza, 2019).

Less than a combination of Istisna and you will Musharakah Mutanaqisah, the customer plus the bank do an excellent Musharakah pool according to the idea regarding shirkahtul-whole milk and you may jointly enter an enthusiastic Istisna offer for the specialist/creator towards the given house build (Financial Negara https://paydayloansconnecticut.com/rockville/ Malaysia, 2015a).