Shariah compliance is a cornerstone of Islamic finance, ensuring financial practices adhere to Islamic principles. Governance systems vary across countries and are broadly categorised as centralised or decentralised. In Kuwait, where no central authority existed, religious interpretations of sukuk (Islamic bonds) were once uniformly formed and transformed. This study examines the mechanisms behind this unique phenomenon through interviews with the actors involved. It highlights the role of the Shariah board of Kuwait Finance House (KFH), the oldest Islamic bank, which became regarded as an authoritative reference even by other Shariah scholars, who themselves are equally legitimate interpreters of Shariah. Public acts of piety by KFH's founders, rooted in an Islamist ethos, legitimised this authority during the rise of Islamist politics in Kuwait. Illustrating a trajectory of recognition among professional peers, this study calls for a broader understanding of emerging Islamic authority beyond the conventional top-down or bottom-up frameworks.
Kitamura et al. (Thu,) studied this question.