The challenge is to enhance efficiency and reduce costs, respond to market and regulatory demands and, most of all, gain competitive advantage through innovative products and services. The overall Islamic financial system, comprising financial institutions, markets and the financial infrastructure, has demonstrated its viability and robustness as a form of financial intermediation. Its growing role in mobilising and channelling funds to productive investment activities across borders brings significant benefits to global economy. Building stronger financial markets and greater intermediation through knowledge sharing especially, forms an important part of this process to facilitate greater international and investment flows. Much in the same way that national strategies are developed to remain competitive in the new, knowledge-based economy in a globalised environment, institutions in the public, private or non-profit sectors, have come to recognise that "knowledge" can play an important role in enhancing the effectiveness of their operations. In addition to investments in human capital and leveraging on the role information technology, considerable attention has been devoted to harnessing the explicit and tacit knowledge they posses. Ladies and Gentlemen, I have previously made two references to the New Silk Road. The first was made at the 2nd World Islamic Economic Forum (WIEF) on "Unleashing the Potential of Emerging Markets" in Islamabad, Pakistan in November 2006, while the second reference was during a special address at the Global Islamic Finance Forum - Investors and Issuers Forum in March 2007.

Zeti Akhtar Aziz: The global Islamic financial services industry Speech by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Launch of Kuwait Finance House Research, Dubai, 14 May 2007. *  *  *  Let me first of all congratulate Kuwait Finance House on the establishment of the Kuwait Finance House Research. It is my great pleasure and honour to officiate its launch. The establishment of this research entity is timely to meet the more intense demands of operating in a dynamic and highly competitive environment where new challenges and opportunities are continuously emerging in this era of globalisation and change. In the recent five years, there has been a rapid evolution and expansion of the global Islamic financial services industry. Islamic finance has now been accepted as a viable and competitive mode of financial intermediation, not only in Muslim countries but also beyond the Muslim world, which offers a wide range of financial products and services to meet the highly differentiated demands of the new economy. The continued progression in the economic and financial landscape has presented many opportunities for new products, services and innovations. With the accelerating pace of financial integration, financial institutions are presented with prospects to expand beyond domestic borders to capture opportunities from regional and global markets. Nevertheless, these opportunities cannot be fully realised without sound research and development efforts. Successful financial services players must leverage on expertise and knowledge to deliver superior products and services.