This study aims to highlight the role of Islamic banking innovation in the development of complex financial contracts, by conducting a field study at the level of Al Salam Bank -Algeria. In order to familiarize ourselves with the aspects of the study, the deductive approach was adopted by describing the concepts associated with both Islamic banking innovation and complex financial contracts. 30 forms were distributed to the workers of the bank under study and 25 valid forms were retrieved for analysis and processing using the SPSS program. After we addressed the subject of the study, the following results were reached: Islamic banking innovation contributes to the development of complex financial contracts effectively and positively by developing available contracts and submitting new innovative contracts that suit the conditions of the bank and in accordance with the provisions of Sharia.