Also istisna’a in Arabic. It is a special kind of the contract of sale (bai’) in which the underlying commodity is sold before it is available with the seller or before it becomes in his possession. This contract is typically established between a seller (manufacturer), known as al-mustasni’, and a buyer (manufacture orderer), called al-mustasni’. The former undertakes to manufacture or otherwise acquire the subject matter of the contract (the asset/item to be manufactured), known as al-masno’o, and sell to the latter, according to preset specifications, and for an agreed-upon price. The two parties will also have to determine the method of settlement, whether it be at the time of contracting or installment-based or deferred to a certain future date. The seller/ manufacturer should provide either the input material or the labor/ skills.

The commissioned manufacture is also known as an “order to manufacture“.