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Purpose

The purpose of this paper is to study the financial product innovativeness of Islamic financial institutions.

Design/methodology/approach

A qualitative research methodology is used to collect and analyze the views of practitioners and researchers of Islamic finance. Different assessments are noted which raise the issue of lack of clarity on that subject.

Findings

Innovation levels of Islamic financial institutions are low owing to the development of Islamic finance as a new activity.

Research limitations/implications

The data available for the study are limited to the views of a small sample of practitioners and researchers in the field of Islamic finance.

Practical implications

The major practical implication is the necessity of developing financial product innovativeness programs as a means for survival and growth.

Originality/value

The paper demonstrates the value of Islamic financial product innovation within the wider context of product innovation.

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