Scholar Fees Targeted by Regulators: Islamic Finance

Islamic finance regulators are working to reduce the role of scholars, blaming delays and excessive fees for stifling growth in the industry.

Bankers and officials from Bahrain to Indonesia are standardizing documents and bond structures to limit impediments caused by varying interpretations of Shariah law. It can take up to 12 weeks to arrange a sukuk sale, compared with eight for a non-Islamic debt offering, according to law firm Clifford Chance LLP. A well-respected expert can charge between $500 and $1,000 an hour in the Middle East, according to two scholars, who declined to be named due to the sensitivity of the issue.