Istisna Sale for Gold Items

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ISTISNA SALE FOR GOLD ITEMS/JEWELLERIES The contract of Istisna is permitted only for raw materials that can be transformed from their natural state by a manufacturing or construction process involving labor. It is permissible that Istisna contract be concluded for the production of subject matter having unique descriptions as well as for the production of subject matter that has perfect substitutes available in the market. One of the types of raw material that is permissible in Istisna sale is gold. The contract of Istisna may be concluded with a condition that production shall be carried out by the Islamic Bank using its own resources and will have a right to assign the process of production to another entity. It is permitted for the manufacturer to fulfill his obligations in Istisna contract by the delivery of items produced by his own resources or items produced by other parties, even though the items were in existence before the Istisna contract was concluded. Istisna is first developed in the basis of the ruling that is based on the following hadith of Rasulullah SAW; “Reported by Jabir bin Abdillah, a lady said: Oh Rasulullah, may I make something for you to sit on it, verily I own a slave who is good in carpentry. Rasulullah SAW replied: As you wish. Then she made a mimbar”(Sahih Al-Bukhari). This shows that Istisna sale has started by the time of Prophet Muhammad SAW. Another prove is when Rasulullah SAW had also applied istisna` contract in making an order to manufacture a ring for him as narrated in the following hadith: “Reported by Nafi’, Abdullah told him: that Rasulullah SAW has ordered a golden ring. When he put on the ring, he will turn its stone towards the palm of his hand. Later, there were a lot of people who also ordered manufactured golden ring for themselves. Then Rasulullah SAW stepped on the mimbar and praised Allah SWT and said: “I had
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