What is your legal guidance regarding the agreed-upon method for a manufacturing contract (Istisna'), where a ton is calculated at one thousand Riyals, provided that 1700 Riyals are paid for each ton produced?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Paying for raw materials to a factory to process them into pellets is a permissible forward lease () contract with a known wage, and not a manufacturing (istisna') contract. This is because an ijara contract is for the work of the laborer without obligating him to provide the manufacturing materials, whereas istisna' obligates the manufacturer to provide both the materials and the labor.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/174263
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 174263
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy