Global Islamic assets performed solidly throughout 2024 to finish strongly for the year, with a gamut of deals, offerings and regulatory measures to continue driving the investing momentum.
Funding galore
The Abu Dhabi Global Market saw assets under management (AuM) increase from US$450 billion to US$635 billion in 2024. Jada Fund of Funds invested in Jadwa GCC Private Equity Fund I, a regional blind pool fund that will invest in GCC companies, with a strong focus on Saudi Arabia.
Uzbekistan’s Shariah compliant retail finance provider Alif secured debt investment from US-based impact private credit fund manager Accial Capital. The Sultanate of Oman invested in xAI, one of Elon Musk’s companies.
Funding Societies, which offers Shariah investments, received equity investment from the Cool Japan Fund. Saudi Venture Capital became the latest major investor in Abu Dhabi-based Aliph Capital – which had earlier secured infusions from Abu Dhabi Developmental Holding Company and Saudi Arabia’s PIF-backed Jada Fund of Funds.
Real estate deals
Further opening up the GCC region, Shariah compliant digital platform Stake and Mulkia Investment Company were allowed to offer international investors access into Saudi real estate investment opportunities.
Sidra Capital will manage a closed-ended real estate investment private fund for a Knowledge Economic City (KEC) project involving a hotel, residential apartments and offices by Q1 2029, while InterContinental Hotels Group inked a separate deal for two new hotels, opening January 2029 in KEC’s Cluster 01 with a focus on hospitality for Umrah and Hajj pilgrims.
Arcapita Capital and Flow Progressive Logistics are developing a logistics complex in Riyadh. Investcorp acquired four student housing properties totaling nearly 3,000 beds located near US universities.
Alternate assets
Dubai Islamic Bank partnered with Crypto.com to offer Shariah compliant offerings – including tokenized Sukuk and real-world assets – to the bank’s clients. With Shariah compliance certification by Amanie Advisors, Malaysia became the first market for Luno’s Shariah-compliant Ethereum staking.
Bursa Malaysia RAM Capital launched a secondary market for its debt fundraising and investment platform while Bursa Carbon Exchange commenced its continuous trading service offering of Gold Standard carbon credits.
Bank Syariah Indonesia partnered with Hartadinata Abadi to launch BSI Gold. Lesha Bank acquired five leased Boeing 777-300ER aircraft to grow its Shariah compliant investments in aviation and aircraft leasing.
Offerings
Nigeria’s ARM Investment Managers launched a fund that focuses on Shariah compliant fixed income instruments such as Sukuk, Mudarabah contracts and other non-interest financial products.
The Saudi Capital Market Authority (CMA) granted IPO approvals to Adeer Real Estate Company, IT firm Ejada Systems, coffee chain Ratio Specialty and private equity fund manager Derayah. Alliance Islamic Bank is underwriting cafe chain operator Oriental Kopi Holdings’s IPO toward a listing on Bursa Malaysia.
The Saudi CMA also approved Saudi Kuwaiti Finance House offering for the Baitk Global Sukuk Fund plus granting Watheeq Capital and Nama Portfolio Capital Company licenses to conduct management of investments and operation of funds in the securities business. Further approved were the Alinma Endowment Investment Fund and the BMK Murabahah Fund.
Mnaara launched a B2B solution for private banks and investment advisors in the UK to offer Shariah compliant private equity opportunities. Ahli United Bank (AUB) launched investment product nama’a in partnership with SAVE Technologies for AUB’s private banking and wealth management clients.
Regulatory initiatives
The Securities and Exchange Commission of Pakistan (SECP) plans to review local compliance with IFSB’s principles for Islamic capital markets. Shariah compliance had so far been achieved for 55% of market capitalization of Pakistan-listed securities, 48% of mutual fund assets, 65% of voluntary pension fund assets and 95% of REITs under SECP regulation.
The SECP further approved the Strategic Action Plan 2024-2026 to facilitate the growth and development of Islamic finance in non-bank financial sectors.
The Indonesian National Committee for Islamic Economy and Finance launched a guidebook on implementing public-private partnerships with Shariah principles.
The Saudi National Debt Management Center signed an MoU with Tarmeez Capital to establish frameworks for cooperation in the field of savings products, aiming to enhance collaboration with the private sector to develop and launch new government-supported savings products.
Significant developments
Pakistan’s YB Group acquired Islamic firm Interloop Asset Management. Singapore’s OCBC and Malaysia’s CIMB submitted non-binding bids for a controlling stake offered by Australia’s ANZ and Indonesia’s Gunawan family in Bank Pan Indonesia (Panin Bank).
Abu Dhabi Islamic Bank (ADIB), through ADIB Ventures initiatives, will identify and support at least two start-ups annually – following a deal inked with Hub71. Bintang Capital Partners is investing in the Project Studio ‘Flow’ fitness chain – which offers tailored classes for individuals undergoing injury recovery, as well as prenatal and postnatal sessions.
Continuing the trend over the past four months, Pakistan’s National Savings Department announced another cut in the profit rate on Islamic Savings Accounts.
Islamic bank Nomo and property search portal Rightmove published the top UK destinations for GCC residential property inquiries. UK’s Shariah compliant property investment platform, Bayuti, opened its waiting list.
