In essence, istisna’a is a debt financing instrument that, like salam, involves the sale of an object (al-masnoo’) for future delivery (i.e., it is not available with the seller at the contract date). Therefore, there is a number of risks inherent in an instisna’a contract among which are the following:

• The “rate of return” risk on al-sani’ (manufacturer, or intermediary bank assuming the role of al-sani’) that arises from the fact that the receivables from buyers on istisna’a basis cannot be traded in secondary markets.
• The risk that arises from the impossibility to trade the underlying objects (goods) prior to the actual commencement of manufacturing/ construction.
• The risk that arises from potential discrepancies between the specifications agreed by the parties, and the actual specifications upon delivery.
• The risk that the prices of raw materials and components may increase in the period of istisna’a, in which case the manufacturer would not be able to pass these costs on to the purchaser (istisna’a orderer).