A wide range of Shariah compliant offerings and investment opportunities peppered February, together with several significant appointments at major Islamic entities.
Funds and IPOs
The Warba Islamic Income Fund offering for high net-worth MENA clients is a private bespoke US credit fund created specifically for Warba Bank.
Partnering with New York firm Parkway Venture Capital helped alternative asset manager Arcapita better identify high-potential investment opportunities for its ARC AI Portfolio.
Dubai-registered asset manager Invesense recently established a Sukuk fund to capitalize on current higher interest rate returns.
ASB Capital, the newly set-up asset management arm of Bahrain’s Al Salam Bank, is planning to roll out a series of new products with the first four funds in Q1 2025.
Assad Wealth Management anticipates its Halal Donor-Advised Fund, the first of its kind in Canada, to double in size to CA$60 million (US$41.83 million) by the end of 2025 on the back of growing appetite for Shariah compliant investment and financial services.
Kuwait’s Gulf Capital Investment (InvestGB) launched the Shariah compliant Lulwa KD Money Market Fund and Malaysia’s Maybank Global Technology-I Fund was launched to offer investors access to high-growth tech companies.
Saudi Arabia’s Aljazira Capital partnered Target to launch a real estate fund called AlJazira Target Al Narjus. Nomura Asset Management introduced the Global Sustainable Equity Fund vehicle for Caisse des Dépôts and its client, Ircantec.
Boubyan Islamic Leasing and Finance Fund 11 (USD) was granted a one-year marketing license to be offered to professional investors within Kuwait. The Securities and Exchange Commission of Pakistan approved IGI Life’s retirement fund offering.
Saudi independent digital investment platform Derayah Financial launched its IPO. Subscriptions have closed for the Mnaara’s Growth Fund. The Shariah compliant IPO of Iran’s Madiran Electronic Industries raised a total of IRR1.98 trillion (US$47.05 million).
The Saudi Capital Market Authority (CMA) approved the public offering of SEDCO Capital’s Saudi Freestyle Artificial Intelligence Fund, the SEDCO Capital Global Monthly Distributions Fund. Kenya’s CMA granted approval for registration of the Ziidi Shariah Money Market Fund.
Pakistan’s Lake City eyes Q1 2026 for the IPO of its Shariah compliant real estate investment trust (REIT), which has the recently-completed Lake City Mall in Lahore as its sole asset.
Other offerings
GFH Partners registered a fresh private offering for its newly-acquired Manrre REIT. Diamond Standard Commodity Corp is conducting a private offer for diamonds in return for shares in an upcoming Shariah compliant diamond exchange-traded fund.
The Saudi CMA approved Al-Waa for Financial Technologies to begin experimenting with its robo-advisory service. Tamkeen Securities will become Pakistan’s first fully digital, online-only securities broker.
Lunate Capital launched the Ghaf Benefits platform for private sector employers and their employees across the UAE. Saudi Arabia’s General Authority for Waqf launched its new digital services Waqf platform.
Jersey-headquartered Ocorian and UK-based Ebdaa Islamic Finance Consultancy are to offer co-branded financial solutions to high-net-worth individuals in the GCC and beyond. Bank Nizwa is offering Wakalah investment advisory services and other bespoke Islamic finance solutions to its affluent clients.
Investments and opportunities
Indonesia launched its second sovereign wealth fund – Danantara, short for Daya Anagata Nusantara – with US$20 billion allotted to high-impact national projects – but significant challenges lie ahead.
Venturing into property development transformed the earnings trajectory of award-winning Koperasi Sahabat Amanah Ikhtiar Malaysia.
Saudi Arabia’s Shariah compliant asset manager Sidra Capital will be leveraging on its client network to attract foreign investors for a Mecca project being undertaken jointly with construction firm Sager Group.
The power wielded by Islamic investors in capital markets around the world and the influence of Gulf wealth continues to be underestimated and misunderstood, said Saturna Capital.
The Eurasian region, as a geographically strategic area with an estimated population of 5.4 billion, aims to become a key partner with the major GCC Islamic finance players.
The Maldives Monetary Authority launched a MVR5 million (US$323,990) training fund, with assistance pledged by Malaysia’s International Center for Islamic Finance University. The International Organization for Migration launched its Islamic Philanthropy Fund.
US-based alternative asset manager Apollo invested another US$500 million in UAE’s Aldar Properties to bring aggregate investment in Aldar led by Apollo to approximately US$1.9 billion across four transactions since 2022. Malaysian ESG Islamic venture capital firm Ficus Capital invested US$430,000 in Singapore’s Morpheus Labs.
Saudi Shariah compliant debt crowdfunding platform Lendo secured a US$690 million warehouse facility led by JPMorgan, after getting US$28 million Series B investment led by Sanabil Investments in December 2023.
German Export Credit Agency Euler Hermes is backing an Islamic facility for Akij Food And Beverage in Bangladesh with Standard Chartered Bank as the investment agent, mandated lead arranger and security agent.
IsDB was urged to explore investment opportunities in Nigeria’s renewable energy projects that include a proposed solar photovoltaic power plant, a methanol plant and a green hydrogen facility.
Africa Finance Corporation raised US$400 million with its Shariah compliant commodity Murabahah facility – upsized from US$300 million – after receiving 47% oversubscription from 11 Islamic financial institutions.
Türkiye’s Golden Global Investment Bank and Kuwait International Bank became global primary dealers for the International Islamic Liquidity Management Corporation. Stanbic IBTC Stockbrokers was appointed to be the Nigerian government’s stockbroker for Sukuk and other sovereign instrument issues.
Acquisitions
India’s Veefin Group acquired UAE’s blockchain-powered auction platform TradeAssets, which offers Islamic solutions. Public Investment Fund-backed real estate developer ROSHN Group acquired ROSHN Front, a commercial and retail development.
Investcorp Capital announced the purchase of another four student housing projects in the US with over 2,500 beds in total. Kuwait Financial Center (Markaz) acquired a 200,000 square-foot warehouse in South East England.
A consortium of Dar Al Arkan Real Estate Development, Kenzi Al Arabiya Company and other investors won a Jeddah land auction worth SAR4.46 billion (US$1.19 billion).
Results
EPF Malaysia declared the highest Shariah investment payout in 2024, with RM10.19 billion (US$2.28 billion) in total for the pension fund’s Shariah accountholders as investments income, higher than the 2023 Shariah distribution of RM7.48 billion (US$1.68 billion).
Malaysia’s PMB Investment declared income distribution of a 1.8% yield for the financial year ended the 31st January 2025, with the fund generating a total return of 2.66% during the same period. This fund charted a return of 23.75% over the three-year period ending on the same date.
Jadwa REIT Saudi Fund’s unitholders for Q4 2024 received SAR20 (US$5.33), maintaining the REIT’s quarterly dividend payout trend since 2021.
The Shariah compliant real estate investment trust managed by Emirates NBD Asset Management recorded a net asset value (NAV) of US$216 million at the end of Q3 2024, a 6.9% rise quarter-on-quarter and 13.1% higher year-on-year.
Alwaha REIT Fund’s NAV rose to SAR191.42 million (US$51.05 million) as at the 31st December 2024, compared to SAR181.05 million (US$48.28 million) at the end of Q3 2024.
Pakistan’s Shariah compliant sustainable development impact TPL REIT Fund I reported PKR706.07 million (US$2.52 million) profit for the six months ended the 31st December 2024. Yaqeen Capital reported a 74.13% rise in gross profit to SAR28.8 million (US$7.68 million) for the year ended the 31st December 2024 – buoyed by the increased pipeline of successful IPOs.
Significant moves
The International Islamic Trade Finance Corporation appointed Nazeem Noordali as officer-in-charge, CEO, replacing Hani Salem Sonbol. Dubai Financial Services Authority appointed Mark Steward as its new chief executive from May 2025.
Islamic Corporation for the Insurance of Investment and Export Credit CEO Dr Khalid Khalafalla was appointed to also be new officer-in-charge and CEO at the Islamic Corporation for the Development of the Private Sector.
Investcorp Capital appointed Mohamed Aamer as its interim CEO, replacing Tim Mattar. Dr Muhammad Issyam Ismail joined First Abu Dhabi Bank as the vice-president of Islamic products. Noor Aini Shaik Awab has left as executive director and CEO of Malaysia’s Hong Leong Islamic Asset Management.
Alternative investments firm Arcapita opened its new Abu Dhabi office – which marks a new phase of this Shariah compliant firm’s expansion and long-term commitment to the UAE – and Apex Group announced the launch of its Riyadh regional headquarters.
Ranking and regulatory matters
Qatar and Kuwait have been reclassified as developed markets by JPMorgan. Despite economic challenges sweeping OIC countries, the likelihood of issuers failing to repay their Sukuk obligations are low, according to Fitch Ratings.
The IFN Investor Forum 2025 in Dubai conducted the ‘Power Panel: Battle of the Shariah Compliant Asset Classes’ session – where five experts championed why their chosen asset class was superior.
Astana International Financial Centre Islamic Finance Head Madina Tukulova shared progress updates for Kazakhstan’s aspirations to be a global marketplace.
Continuing a recent spate of regulatory changes in Saudi Arabia to attract foreign investments, the latest CMA’s proposals indicate the Kingdom is preparing for the implementation of the GCC fund passporting regime. The CMA also seeks stakeholders’ feedback on proposed regulatory environment changes for investment funds in Saudi Arabia.
The Securities Commission (SC) Malaysia released its Regulatory Sandbox Guidelines and invites applications. The SC is also spearheading Malaysia’s co-investment fund to support rising businesses, using P2P and equity crowdfunding (ECF) platforms – providing both conventional and Shariah offerings – to attract private investors.
Financial professionals with Islamic market experience to enjoy faster immigration approvals to work in Hong Kong.
