“We expect Financial Services Authority approval within the next few weeks,” said Alun Williams, a consultant at the firm.

The company will be the first in the UK which is authorised to issue Sharia-compliant insurance policies. It will start with car insurance.

Williams said that BIIH estimates that the Islamic car insurance market in the UK could be worth up to $1bn. The company will then consider launching products for home insurance.

BIIH is owned by Gulf investors and chaired by Abdulaziz Aljomaih of Saudi Arabia’s Aljomaih Holdings.