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The Financier May Also Be Manufacturer In Istisna Agreement
May the financier in an Istisna agreement play the role of a manufacturer?
It is permissible for the financier to play the role of manufacturer: for example, a financial intermediary like a bank can enter into an Istisna agreement with a home buyer whereby the bank agrees to build the house (by hiring a contractor in a separate agreement) and the buyer agrees to buy the house; the bank assesses its cost and adds its profit and sells the house to the buyer, whether in installments or as a lump-sum before, during or after production.

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