Sukuk al-Istisna a and Microfinance in Deprived Areas

Because deprived areas are lacking in infrastructures, they are not potentially capable of attracting investment. This situation highlights the necessity of financing the micro projects in deprived areas by government. Using an analytical method, this paper explores the possibility of using Istisna’a method of financing the micro projects in these areas. This paper assumes that sukkuk al-Istisna’a are a suitable way for microfinance in deprived areas. The research findings show that sukuk al-Istisna’a have a constructive role in achieving this aim. According to the proposed model, the process of microfinance begins with making an order to the bank for producing certain kind of goods by one of the public of private companies. This process being by introducing to the bank the names of production teams, signing a Istisna’a contract, issuing sukuk al-Istisna’a, microfinancing and finally delivering profits to the holders of the sukuk al-Istisna’a. The suggested model has many advantages, like; preparing the ground for boosting employment in deprived areas, collecting and making full use of micro resources, ensuring the sale of the products and creating a boom in production.