GLOBAL: There were fewer Islamic fund launches in the first half of 2025 – according to insights from the IFN Investor Database – with only 39 new Shariah funds making their debut. This figure marked an almost 50% decline from the 77 new fund launches in H2 2024.
The slowdown was most pronounced in Islamic equities, which fell from 38 launches to 11, as investors pulled back from risk-heavy strategies amid global economic uncertainty arising from unilateral tariffs announced by the Trump administration plus concerns over the US Federal Reserve’s rate stance.
Fixed income and Sukuk fund launches also declined, almost halving, amid higher rate environments that weighed on long-duration products. In contrast, money market, mixed asset and real estate funds held steady, signaling continued demand for liquidity and stable, income-generating exposure.
Overall, the slowdown suggests a shift toward capital preservation and balanced positioning. This suggests the Islamic fund industry is adapting prudently to global headwinds while maintaining investor confidence in lower-risk segments.
Restricted Access
Login to continue reading (existing subscriber)
Subscribe NOW and get:
- Gain unlimited access through all key operating platforms
- Full access to all listed Islamic funds & fund profiles
- Unlimited access to all Islamic fund managers
- Access to all exclusive articles, reports, podcasts & videos
- Complimentary access to all IFN Investor Forums
