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advances can also drive efficiency. Technical Assistance networks can provide new financial
institutions and emerging markets with assistance in establishing technical solutions that will
improve operational efficiency.
Another way in which operations among Islamic financial institutions can be improved is
through improvements in industry research and best practices. Developing methods of
conducting valuable industry research will help foster efficiency and innovation in the
industry.
In addition to improvements in innovation and efficiency within the industry, regulations must
also be crafted in such a matter that fosters new innovations within the industry. The recent
financial crisis drew attention to the impact that financial innovations can have on economic
outcomes. Regulations can have a significant impact on the degree and speed at which
innovations are adopted within the industry. Therefore, regulations must be crafted in order to
ensure that innovations in the financial industry can be appropriated evaluated and, if
appropriate, implemented, in order to create a more robust financial sector.
6.9.5. Promote the International Growth of the Islamic Finance Industry29
Enhance National Islamic Finance Agendas
Countries around the world are beginning to take steps to improve their economic outlook and
engage in international trade. A crucial part of this process includes the use of the banking and
financial systems to fund projects that lead to improved infrastructure, social well-being and,
ultimately, economic growth. Islamic finance has a key role to play in this process, and a key
initiative is to promote the advancement of the Islamic finance industry through the
implementation of national development plans that acknowledge the role of Islamic financial
institutions and promote their growth.
Encouraging developing nations to include the Islamic financial industry in their respective
national development plans can help the worldwide growth of the Islamic financial industry as
well as provide enhanced mechanisms for economic growth and wellbeing in emerging
markets. Additionally, a key component of encouraging Islamic finance in the development
plans of countries is the establishment of Master Plans that incorporate specific development
goals.
Islamic finance Master Plans can provide specific strategic guidance for the implementation of
policies related to the Islamic finance industry that are specific to the needs and circumstances
of individual countries. The goal of developing a national Islamic finance Master Plan is to
identify specific areas of the industry that need to be addressed in order to promote a healthy
financial sector and encourage balanced growth of the Islamic finance industry. For example,
Master Plans should promote the growth of a complete Islamic finance sector, which includes
banking institutions as well as non-bank Islamic financial institutions such as Takāful
29 Islamic Research and Training Institute (2014): Islamic Financial Services Industry
Development: Ten Year Framework and Strategies, A Mid-Term Review