Istiglal

Bay Al Istiglal is a variation of Bay bil Wafa.

Bay bil Wafa is sale with the option of resale to the same party. The concept of Istiglal adds that during this period the good could be leased to the original seller.

This technique was widely used by the cash waqf according to Murat Cizakca.

References

• 6.2. Islamic Risk Management, Mohammad Obaidullah
• Murat CIZAKÇA - ISLAMIC NON-BANK FINANCIAL INSTRUMENTS FROM THE PAST TO THE FUTURE?