Where I leave, they do. The WT society has a set of publications designed especially for muslins, complete with quotes from the Coran and all.
i know publishers who learned Arabic and specialize in preaching to Muslims. This happens in predominantly islamic countries, other countries with less muslims and anything in between.
I have personally met 2 or 3 people who converted from Islam to become JWs.
when in the fs, very very few jws will risk talking to them though, because one needs a good preparation for that. You can't mention the bible or Jesus so you better master the art of speaking to them before you do.
Also, once in a bluemoon the contents on the school meet ings are replaced by a part to educate on fs methods just for islamic territories.