the challenge is to provide programmes which keep pace with changes in financial innovation and technology. meeting this need requires rigorous, extended programmes such as the post - graduate programmes in islamic finance and financial engineering with emphasis on islamic banking principles. at the same time, relevant organizations can support such programmes by creating funds to sponsor promising students to pursue formal education, ranging from modular courses in islamic finance to full post - graduate programmes. there is also a need to increase programmes and initiatives that provide education and training in shariah. islamic research organizations and financial institutions need to work towards developing a sufficient number of competent shariah scholars who are equipped with sound knowledge and expertise in both islamic jurisprudence and islamic commercial laws to deal with innovative and cutting - edge products. there is also the need for extensive education of the consumer and business community. this would increase the outreach resulting in increased demand for new and innovative products and approaches. malaysia has implemented a 10 - year structured consumer education programme to increase the level of consumer awareness on the unique characteristics of islamic financial products and the product choices offered by islamic financial service providers. increased awareness will drive the demand for a broader range of islamic products and services customized to their requirements at more competitive prices and through more convenient channels. the outreach has also been targeted at small and medium sized businesses. this process will also prompt the financial industry to increase innovation to strengthen their competitive position. this can be reinforced by market research to enhance the understanding of customers ’ distinct financial needs and their risk tolerance and therefore enable the design of islamic financial instruments that offer tangible benefits and value to customers. in addition, with increased disclosure and transparency on the manner in which islamic financial transactions are being conducted and on how islamic financial contracts are being executed as well as on the risk and return profiles of financial products, this will further strengthen the role of competition. in conclusion, the investment in the future needs to be undertaken by all the relevant entities in the islamic financial sector - the industry, the regulators, the market participants, the academia and the international community. as a co - ordinated and concerted effort it will be mutually reinforcing in elevating the performance of islamic finance. while the increasingly more competitive prevailing environment raises the pressures to produce immediate - term results, it is the investment in human capital and in research and development that will secure the long - term sustainability of the industry. it is these investments that will be the defining element of the future development of islamic finance and its long - term success.

##riah dynamism is evident in the evolution of sophisticated islamic financial products that are being structured based on multiple shariah concepts. against these developments, it is timely to move away from “ plain vanilla ” innovation and to embrace a new wave of innovation that will evolve islamic financial instruments into distinct products that will maximize the potential and wisdom of the shariah and that meets the greater sophistication of consumers and the more complex requirements of today ’ s businesses. this paradigm of innovation in islamic finance, which by itself shall accord islamic financial institutions with the competitive advantage to forge ahead, entails substantial and continuous investments in research and development ( r & d ). r & d is indeed an essential aspect of modern industries and enterprises and is no less the case in the financial world. there are three important pre - requisites in strengthening research and development capabilities, namely, adequate allocation of resources for infrastructure development, forging strategic alliances through smart partnerships and developing the required pool of qualified and skilled talent. adequate allocation of resources for infrastructure development islamic financial institutions are continually being confronted with new challenges that need to be addressed. their institutional capacities and capabilities need to be continuously strengthened. this includes attention to continually review their strategic orientation and key priorities and the necessary adjustments that need to be made to position the institutions to effectively respond to the new developments and challenges that have emerged. in order to meet the increasing demands of a modern and sophisticated market, financial institutions must continually invest in the supporting infrastructure that promotes research and development. this will enhance the capacity for innovation. attention also needs to be given to the applied approach to islamic finance and its modern practice. financial support for advanced research at universities and research institutes will increase research opportunities. efforts to utilise and install strong technological capabilities will also contribute to enhance research and development. in embracing the new leadingedge technology, the potential for the islamic financial industry to develop new products and services will also be enhanced. forging strategic alliances through smart partnerships to further enhance research and development ( r & d ) activities, the promotion of strategic alliances through smart partnerships can play an important role. entering into strategic alliances with other entities would create greater synergy, which may bring about new approaches, new technologies and new areas of specialization. collaborative efforts amongst islamic financial institutions in particular, would strengthen the ability to leverage on the industry ’ s expertise. the introduction of innovative islamic financial products in a specific jurisdiction can be expanded to other jurisdictions, which in turn, will contribute to broaden