Financially-literate Islamic scholars are in demand as Western investment banks look to tap into the growing devout Muslim client base.

This weekend the Financial Times reported that leading banks are scrambling to find Islamic experts who can issue religious edicts (fatwas) approving new Islamic-compliant financial products.

Devout Muslims will only buy instruments approved by recognised and respected Sharia scholars, but there are very few scholars who understand the complexities of global structured financial products.

In addition, investment banks are expanding their business in the Middle East, and the increased demand has triggered intense competition for Sharia advice.

Humayon Dar, managing director of the Dar Al Istithmar Institute, a London-based Sharia consultancy, told the FT, “There is a real shortage.”

Some banks say they have paid up to 265k for advice on large capital markets transactions, according to the paper – a dramatic increase from the levels seen a few years ago.