This article discusses the strategic lines that Islamic Financial Institutions (IFIs) can borrow in order to develop and implement Islamic financial products (IFPs). It proposes a nine-zone matrix that shows the feasible strategic routes and the corresponding characteristics in terms of four attributes, namely (i) shari’ah & legal compliance, (ii) profitability, (iii) customer satisfaction, and (iv) industry dynamics. The proposed matrix is a conceptual endeavor that categorizes the possible zones in which the development of Islamic financial innovation is feasible. Labelled CPSD nine-zone matrix, it shows that there are three main strategic lines, namely profitability-led strategic line, intermediate strategic line and compliance-led strategic line. The optimal strategic behavior of IFIs in terms of IFPs development is the intermediate strategic line because it is the closest route towards the most efficient zone, namely the dynamo zone, in which the IFP generates the highest profitability, maximizes the customers’ satisfaction, exhibits the highest level of shari’ah and legal compliance, and benefits form the dynamism of the industry. The IFIs’ strategic behavior should consist in the diagonal convergence towards that zone through the shortest route across which the efficiency of IFPs development is optimal.