Momentum in Islamic derivatives

GLOBAL: The Islamic derivatives market is expected to gain momentum in select jurisdictions, supported by new product developments and the enactment of netting legislations, according to Fitch Ratings. Approximately 75% of Fitch-rated Islamic banks employed Islamic derivatives in 2024 to the first half of 2025, with the most common instruments being profit rate swaps, forward foreign exchange contracts and cross-currency swaps especially in Saudi Arabia, the UAE, Turkiye, Kuwait and Qatar. However, the market remains underdeveloped in jurisdictions such as Indonesia, Iraq and Nigeria and still accounts for just 1% in Malaysia.