GLOBAL: Sukuk funds recorded divergent performances across regions in Q1 2025, based on data tracked by the IFN Investor Funds Database. Europe posted the highest Sukuk fund growth rate, while Asia Pacific remained the region with the largest AuM – US$5.38 billion.
Europe’s AuM grew significantly from US$2.03 billion to US$2.81 billion, marking a robust 37.99% increase. The UK led regional performance, which saw a threefold increase from US$86.29 million to US$371.25 million – primarily driven by the investor inflows into multiple share classes of the HSBC Global Sukuk UCITS ETF. Turkiye followed with a 35% rise in AuM, from US$1.16 billion to US$1.57 billion, driven by the inclusion of new funds – growing from 39 to 42 as indicated in the IFN Investor Funds Database.
The Americas also experienced a positive growth rate of 12.53%, with AuM rising from US$263.97 million to US$297.04 million, supported by a strategic shift by fund managers toward more stable markets.
Despite having the largest AuM across all regions, Asia Pacific saw a decline of 8.71% in Sukuk fund growth, falling from US$5.9 billion to US$5.38 billion. This downturn was likely due to outflows from key markets and reduced investor appetite amid regional economic uncertainties.
Africa, with the smallest AuM base, recorded a 4.83% overall increase, from US$102.27 million to US$107.2 million. While Nigeria experienced a 1.92% decline, this was offset by South Africa’s 5.33% growth, from US$95.13 million to US$100.21 million.
The Middle East showed steady growth of 1.1%, increasing from US$1.99 billion to US$2.01 billion, with the UAE leading regional AuM. The three-month return for the region also reflected a moderate gain of 1.42%.
