Research Institute of Hawzah and University Journal of Economic Essays: an Islamic Approach 3115-8226 4 8 2007 09 23 Estesna'a; negotiable papers, as a complementary for capital market of Iran Estesna'a; negotiable papers, as a complementary for capital market of Iran 13 38 287 FA Abbas Mosaviyan Faculty member of Institute for Islamic Culture and Thought Journal Article 2007 07 16 Excluding government bonds and possibility of Islamic contracts in<br />devising different financial instruments has made Muslim scholars<br />think of designing Islamic financial instruments; in such a way, which<br />different Islamic financial instruments were developed in a shortterm.<br />The present study explains one of these instruments, designed<br />on the basis of Estesna'a contracts. Through this instrument, those<br />ministries, municipalities or government and private companies<br />which want to launch or run a major project and have not enough<br />financial credit, order the project to the contractor, according to the<br />Estesna'a contract and then, guarantee the payment of project costs to<br />a contractor in a definite timing. In this way, the employer gives<br />negotiable papers of Esteesna'a to the contractor instead of any other<br />payment, regarding the improvement of the project. In due date,<br />contractor acquires the ownership of negotiable papers of Estesna'a or<br />he/ she can sell them in a secondary market before due date.<br />Negotiable papers of Estesna'a, considered as profit-making financial<br />instruments with definite output rate, are expected to be encouraged<br />by non-risky and common people. They are also known as<br />appropriate instruments for financial and monetary policies besides<br />encouraging investment. As well as, it is a suitable complementary for<br />the capital market of Iran which suffers a shortage of different<br />financial instruments. Excluding government bonds and possibility of Islamic contracts in<br />devising different financial instruments has made Muslim scholars<br />think of designing Islamic financial instruments; in such a way, which<br />different Islamic financial instruments were developed in a shortterm.<br />The present study explains one of these instruments, designed<br />on the basis of Estesna'a contracts. Through this instrument, those<br />ministries, municipalities or government and private companies<br />which want to launch or run a major project and have not enough<br />financial credit, order the project to the contractor, according to the<br />Estesna'a contract and then, guarantee the payment of project costs to<br />a contractor in a definite timing. In this way, the employer gives<br />negotiable papers of Esteesna'a to the contractor instead of any other<br />payment, regarding the improvement of the project. In due date,<br />contractor acquires the ownership of negotiable papers of Estesna'a or<br />he/ she can sell them in a secondary market before due date.<br />Negotiable papers of Estesna'a, considered as profit-making financial<br />instruments with definite output rate, are expected to be encouraged<br />by non-risky and common people. They are also known as<br />appropriate instruments for financial and monetary policies besides<br />encouraging investment. As well as, it is a suitable complementary for<br />the capital market of Iran which suffers a shortage of different<br />financial instruments. https://iee.rihu.ac.ir/article_287_f9ce086695c255868ce7d6359e200fe3.pdf