Can derivatives be shariah compliant?


My understanding is that derivatives by their nature are not shariah compliant

point 3 of page 55 of the says “use Shariah-compliant financial derivative instruments for hedging purposes only”.

Not seeking screening or advice on investment but a general question if there is any such thing as “Shariah-compliant derivatives”



May Allah bless you.

Yes there are some Islamic derivative instruments available in the market.

There is a short interesting book called Derivatives in Islamic Finance by Sherif Ayoub. Inside you will find a section about current derivatives used in the Islamic finance industry.

And Allah knows best!

Are from AUS brother


No brother I don’t live in Australia.

Esselamu aleykum,
Is there a halal gold derivative that has a leverage on it?
How can derivates be halal in the first place? When we buy, we have to buy a real thing right?

Esselamu alaykum,
I bought the book after seeing this. Which chapter is it? @Mufti_Billal @Mufti_Faraz_Adam