Istisna is an Islamic order-to-manufacture contract. The buyer orders a specific item to be built, manufactured, or constructed according to agreed specifications. Payment can be made upfront, in installments, or upon completion.
Think of it like commissioning a custom-built house. You tell the builder exactly what you want — number of rooms, materials, timeline — and agree on a price. The builder delivers the finished product according to your specifications.
Istisna is widely used in Islamic project finance for infrastructure, real estate, and industrial equipment. Unlike Salam (where payment must be upfront), Istisna allows flexible payment schedules, making it ideal for large construction and manufacturing projects worth millions of dollars.