Participatory Istisna

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Dictionary term

Definition of "Participatory Istisna"

A mode of finance that combines features of pure istisna‘a and some features of musharakah. This mode of finance is suit- able where a foreign party joins a host party to establish a project. In this mode of finance, the project is conceived and specified by the host party but established by the foreign party. The host party operates the project. The ownership of the project is gradually transferred to the host party. The foreign party shares in the profits or output instead of claiming a fixed price.


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