As the leading resource tracking public Islamic fund offerings worldwide, the IFN Investor Funds Database recorded 2,626 public Islamic funds managed by 499 asset management firms, with a combined total of US$716.94 billion in AuM as at the 5th January 2026.
A key insight from this database revealed how Shariah compliant passive investment strategy funds recorded a defining shift in Q3 2025, with total AuM rising to US$75.24 billion from US$40.88 billion in Q2 2025 – almost doubling over the quarter on sharp rises in the value of commodities like gold.
Islamic retirement funds expanded steadily in Q3 2025, where total AuM rose to US$19.64 billion from US$15.46 billion in the previous quarter. Islamic ESG funds performed well in Europe in Q3 2025, underscoring this region’s growing role in the Shariah compliant sustainability segment amid softer sentiment across key Asian markets.
Meanwhile, Saudi Arabia, home to 23 of the 31 Waqf funds tracked by the IFN Investor Funds Database, remained the largest market globally for such investments.
Innovations and trends
A Pakistani fund manager says domestic Islamic asset availability crunch could be addressed through private or corporate credit participants entering this space, for example, banks could create more private credit deals, which then transition into public debt instruments.
Structural realignment, shaped by persistent inflation, shifting monetary conditions and the search for dependable yield, is influencing more investors within Nigeria to venture beyond the traditional emphasis on public mutual funds toward private assets, customized mandates and sector-focused alternatives.
Malaysian regulatory authorities are urged to engage key stakeholders to develop the private market funds ecosystem within the nation, similar to what they did for public market strategies such as Shariah equity and Sukuk funds.
US-based Sinbad Capital believes the global Islamic market has the potential to be five times bigger if it gets rebranded to social responsibility or impact investing, with less use of the ubiquitous labels of “Halal” and “Shariah compliance”.
Alternative asset manager Apex Group launched a platform that consolidates various private investment opportunities and deals, both conventional and Shariah compliant, aiming to lower the entry bar and democratize access to such prospects.
First Abu Dhabi Bank (FADB) announced its formal participation in the Majarra initiative – which aims to establish a new, integrated platform for international capital market issuances, trading and distribution – powered by Halo Investing. FADB also inked a deal to offer investment opportunities from European asset manager Amundi to the bank’s clients.
Fintech advances
BlackRock inked MoUs with International Holding Company units, Finstreet and ADI Foundation, exploring initiatives aimed at facilitating access to tokenized investment products – with Finstreet separately collaborating with OKX Ventures.
The Chartered Alternative Investment Analyst Association entered a multi-year partnership with Franklin Templeton, under which both parties will jointly develop a new Islamic finance microcredential scheduled for launch in 2026.
CIMB Group announced its commitment to the tokenized Sukuk issuance pilot project by Malaysia’s sovereign wealth fund Khazanah Nasional and the Securities Commission Malaysia.
Fintech Afreum is launching the Africa Wallet, which aims to offer tokenized asset management for users across the African continent and beyond.
Johor launched RMJDT, a ringgit-backed stablecoin issued by Bullish Aim on Zetrix, a Shariah compliant layer 1 blockchain. Digital-first Islamic bank ruya partnered with Fuze – laying claim to be the first Islamic bank globally to enable customers to buy and sell Bitcoin directly through its mobile app.
Fintech Tabadulat received the full license to operate in the Abu Dhabi Global Market as a Category 3A entity offering a trading model on US stocks and regulated Halal access to global markets. The Saudi Capital Market Authority authorized Dinar Investment Company to commence its dealing activities in the securities business.
Shariah advantages
Despite challenges within Iran’s vehicle industry, the Persian nation’s first automotive-focused fund chalked up a 30% share price gain in the 15 months since its September 2024 launch.
Philadelphia-based Apex Capital Investments has steadily built a reputation as one of the few US mid-tier real estate managers able to consistently structure and execute Shariah compliant investment deals for Middle East clientele with its niche focused on multi-family residential properties and single-tenant commercial buildings with long leases.
Malaysia’s Bank Rakyat is leveraging on its Shariah compliant digital Akaun-i eGold platform and broader gold ecosystem to grow its wealth management portfolio. With a new CEO, Malaysia’s Islamic fund manager BIMB Investment has begun looking at ways to foster revitalization of some assets in its range of 15 fund offerings.
Regulatory initiatives
The Securities and Exchange Commission of Pakistan is allowing money market fund managers to invest in longer term government Ijarah Sukuk, with maturity exceeding six months.
Abu Dhabi unveiled the FinTech, Insurance, Digital and Alternative Assets cluster to accelerate development of next-generation financial and investment solutions. UAE’s Ministry of Finance signed an agreement with Emirates Islamic Bank to enable retail access to government Islamic treasury Sukuk.
The Endowments and Minors’ Funds Authority entered a partnership with Abu Dhabi Islamic Bank to expand the Emirate’s endowment ecosystem and accelerate its digital transformation initiatives.
The MJC Shariah Advisory Services, a new division under the Muslim Judicial Council Halaal Trust, aims to further Shariah governance and support the development of Islamic finance in South Africa and the wider region.
Bursa Malaysia announced 26 additions and six removals from the FTSE4Good Bursa Malaysia Index, and 24 additions with 10 removals from the FTSE4Good Bursa Malaysia Shariah Index. FTSE Russell and Bursa Malaysia announced four constituent changes to the FTSE Bursa Malaysia Hijrah Shariah Index following the December 2025 semi-annual review. Aamal Company and Meeza QSTP were included in the QE Al Rayan Islamic Index following Qatar Stock Exchange’s latest index review.
The Pakistan Stock Exchange introduced a set of regulatory amendments governing Shariah compliant brokerage services. Indonesia’s Financial Services Authority (OJK) issued two new regulations affecting Islamic finance-linked digital assets and microfinance institutions, aimed at strengthening supervision and market integrity.
Deals and partnerships
Tokyo-headquartered Amova Asset Management, formerly known as Nikko Asset Management, is raising its stake in Malaysia’s AHAM Asset Management from 20% to 97.7%. Halogen Capital, a Malaysian digital asset fund manager, announced the close of its RM13.3 million (US$3.25 million) funding round, led by Kenanga Investment Bank alongside VC firm 500 Global.
Investcorp, which invests in both conventional and Shariah compliant assets, acquired a diversified industrial portfolio of properties located across coastal markets in both the eastern and western US for about US$400 million.
JS Hotel REIT, a Shariah compliant Hybrid REIT scheme, received approval to purchase Elite Hospitality Ventures, which is developing a four-star Hilton Garden Inn in Hyderabad.
Bank Nizwa is partnering the Bousher Endowment Foundation and Wadiah Commercial Operations Company to launch a Waqf crowdfunding platform, touted as the first of its kind in Oman and across the GCC.
Offerings
The CFG Ethical Fund, a NGN1 billion (US$648,000) actively managed, open-ended unit trust structured in line with Islamic finance principles was launched in Nigeria.
Avrist Asset Management launched the Avrist Sukuk Berkah 9 Shariah mutual fund in partnership with Bank Muamalat Indonesia.
Gulf Capital Investment Company was authorized to privately market 1.62 million shares of the Ares Strategic Income Offshore Access Fund within Kuwait.
UK’s thematic investment manager, Sarasin & Partners, launched a new Shariah investment service to be offered as a multi-asset discretionary portfolio overseen by an independent Shariah advisory panel.
Aldar and Mubadala Capital are launching Aldar Capital, a multi-billion investment management platform offering various real estate and infrastructure opportunities across the UAE and wider GCC region.
Middle East Financial Investment Company launched the MEFIC Capital Murabaha Fund Class A open-ended public money market fund. Malaysia’s PMB Investment launched the PMB Shariah Stable Value Income Fund for sophisticated investors.
SMC Healthcare is to establish the Al Wadi Real Estate Fund as a close-ended, Shariah compliant investment vehicle. Yaqeen Capital announced the launch and commencement of operations of the Yaqeen Income Generating Fund 2, a private, closed-ended Shariah compliant real estate fund.
Niyan Battery Khavaran offered a total of 123.4 million shares, equivalent to 12% of the company’s share capital, ahead of a Shariah compliant listing on the Iran FaraBourse. GFH Financial Group committed as a cornerstone investor in the IPO of Mininglamp Technology, a China-based agentic AI and data intelligence software company.
Pak Qatar Family Takaful’s listing marks the first IPO of a dedicated Family Takaful company in the Pakistan Stock Exchange. Shariah-certified Mosanada Facilities Management Services will be listing directly on the Qatar Stock Exchange main market.
Significant developments
The Abu Dhabi Investment Council, one of the world’s largest sovereign wealth funds, filed a lawsuit which aims to block Energy & Minerals Group from selling its stake in Ascent Resources to one of this PE firm’s sister funds.
The Saudi Bahraini Investment Company signed an agreement with Bahrain Mumtalakat Holding, Bahrain’s sovereign wealth fund, aimed at expanding opportunities of investment cooperation between the two parties.
The Portuguese Golden Visa confusion spooked Islamic investors, causing some to delay commitments in residency-focused Shariah funds.
Pelaburan Hartanah, Malaysia’s largest Islamic property investment and management group, promoted Mazuki Abdullah @ Muhammad as its new group managing director, effective the 1st January 2026. Meanwhile, the Employees Provident Fund appointed Mohamad Hafiz as its new chief investment officer effective the 1st December 2025.
