Also known as a Sharia Supervisory Board. A panel of Islamic scholars that determines whether a product, practice, or service is Sharia-compliant. Generally, each Islamic finance institution or conventional financial institution that wishes to develop Sharia-compliant financial products and services for Muslim investors establishes a committee composed of one or more reputable Islamic finance scholars to pass judgment or issue a fatwa indicating that the product or service is Sharia compliant.

Because of the differences in religious practice in the Middle East and North Africa (MENA) and Asia (Malaysia and Indonesia), the choice of scholars for the committee depends on the market for which the product or service is designed. However, US and UK financial institutions with global interests often have regional Sharia committees to address the cultural and religious traditions of particular jurisdictions as well as a global Sharia committee with representatives from the various regions to harmonize Sharia standards and practices.

For more information on Sharia committees in the US, see:

For more information on Sharia committees in the UK, see Practice note, Islamic finance: UK law overview.