The Islamic financial industry has made significant progress, with many jurisdictions now having put in place or actively working towards introducing or strengthening the essential fundamentals in the financial infrastructure needed to support the sound expansion of Islamic finance. Islamic finance has also been considered as an important tool to strengthen inter-regional trade, support corporate and SME sector growth and spur infrastructure development. The current challenge is to take the industry to its next stage of development and reinforce the robustness of the industry in a more challenging and dynamic socio-economic environment. Of importance in this respect, is the need to further build and advance the key strengths of Islamic finance as well as enhancing institutional capacity in the industry. From the perspective of stakeholders, building an enabling environment for Islamic finance and ensuring a level playing field with conventional finance are critical to the development of the industry. To achieve these objectives, appropriate adjustments to a range of policies – including from trade policy to monetary management, liquidity and capital market development initiatives as well as fiscal and taxation policies – have been recognised as key areas of concern.