IFN Investor Monthly Round-up: In August, unusual innovations – and style – drive Shariah success

The IFN Investor Funds Database hit the US$650 billion mark for the first time. That's from 2,556 Shariah compliant public funds managed by 490 fund management companies as of the 1^st September 2025. The Shariah investment landscape continues to chart growth, having seen 30 new Islamic funds launched in H1 2025 with AuM valued at a total of US$169.17 million.

August also wasn’t just a month of innovation but also aesthetics in Shariah investing – literally in some cases – as UK’s BlueBox Asset Management touted its inverted pyramid of glasses model for tech funding while Dubai-based EightClouds showed off an expanding chain of male grooming clubs.

Offering access to EU residency via the Portugal Golden Visa is a fund strategy by Lisbon-based Atlantic Premium Capital Partners while Muamalat Invest is pitching non-traditional fixed income instruments like Islamic investment notes issued by P2P financing operators. NASDAQ-listed gold exchange-traded funds are charting an attractive track record as Shariah investment opportunities

An established entity entrenched in Wall Street capitalism is among those adopting a softer ethical investment avenue while Malaysia’s RHB Bank is helping idle funds to be temporarily used for sustainable socioeconomic activities.

EDC Fund Management’s offer is spanning the five key African markets of Nigeria, Ghana, Senegal, the Ivory Coast and Kenya. Meanwhile, Ivory Coast-based NSIA Asset Management runs a fund with holdings that span equities and Sukuk issued in the eight member states of the West African Economic and Monetary Union. Kuwait Finance House’s partnership with Sakan offers clients access to investments in real estate opportunities in the six nations of Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the UK.

New offerings

UK’s Valpre Capital is offering investors access to YotelPad Athens, a modern aparthotel strategy located in the Greek capital, via a partnership with UK platform Vennre. Eastspring Indonesia launched a Shariah mixed asset fund and the IPO opened for the Shariah compliant anb capital Saudi NOMU Market Fund.

The ADIB Islamic Trade Opportunities Fund for professional clients will be managed in collaboration with Goldman Sachs Alternatives. The Boubyan Leasing and Islamic Finance Fund Company 3 is to be offered to professional clients within Kuwait.

RHB Islamic Bank partnered with Universiti Malaysia Terengganu to launch Malaysia’s first Waqf to support turtle conservation efforts. The Bayt Alnomow Capital Direct Financing Fund is a private closed-end fund providing Shariah compliant direct lending to Saudi SMEs and legal entities.

Regulatory action

On the regulatory front, Pakistan is channeling long-term savings into national infrastructural development funding. The Securities and Exchange Commission of Pakistan mandated digital payment solutions at business outlets by the 31^st October 2025.

Foreign individuals and entities can own and invest in certain Saudi properties from January 2026. The Saudi Capital Market Authority (CMA) could allow financing investment funds – previously offered through private placements – to public investors. The Financial Services Authority of Oman introduced a new regulatory framework for a secondary market established within the Muscat Stock Exchange.

Egyptian investment platform PALM was approved by the Financial Regulatory Authority to offer investment services. Saudi Arabia’s CMA approved the public offering of Jood Waqf Fund by SNB Capital and the new MEFIC Capital Murabahah Fund.

The Saudi Central Bank granted Saudi Real Estate Refinance Company a no-objection approval to launch its first domestic securitization-backed securities program that aims to convert residential real estate financing portfolios into securities.

The UK government approved the US$55 million investment by UAE sovereign fund Mubadala for a 12.8% stake in graphene-based chip manufacturer Paragraf. Indonesian sovereign wealth fund Danantara, said to have US$1 trillion in AuM and oversees nearly 900 state firms, is reportedly seeking to raise IDR50 trillion (US$3.06 billion).

UAE’s Virtual Assets Regulatory Authority imposed an undisclosed fine on Morpheus Software Technology (Fuze) for breaches in internal system controls. The Saudi CMA revoked the securities business license of Edraj Capital while the SECP issued a warning on the investment scheme MAG Ventures, promoted by Syed Mohsin Sultan Shah as Halal and Shariah compliant.

Shariah asset performance

The total value of Islamic fixed income and Sukuk funds tracked by the IFN Investor Funds Database reached US$22.03 billion as at the 30^th June 2025 – marking a 10.87% growth over H1 2025.

The Americas stood out as the top performer in Q2 2025, driving renewed momentum in the global Islamic funds industry with total AuM climbing 16.14% quarter-on-quarter from US$16.34 billion at the end of Q1 2025 to US$18.98 billion for Q2 2025. Islamic ETF funds in the US also delivered the strongest performance in Q2 2025, compared to global counterparts, charting an average three-month return of 10.31% in this quarter.

The real estate sector emerged as the top performer to power Europe’s Islamic fund industry – which recorded a steady 7.15% growth in total AuM, rising from US$41.29 billion in Q1 2025 to US$44.25 billion in Q2 2025, according to data tracked by the IFN Investor Fund Database.

Islamic funds in the Middle East experienced modest overall growth in Q2 2025, with total AuM edging up by just 0.37% – from US$61.06 billion in Q1 2025 to US$61.28 billion in Q2 2025. Islamic funds in Kuwait posted a weak performance overall, with total AuM rising just 1.25% to US$3.95 billion as at the 30^th June 2025 when compared to the Q1 2025 figure of US$3.91 billion.

Fintech

The fintech wilderness could get some clarity with Islamic-based efforts spearheaded by Al Mabrook with Canadian regulators to allow digital assets into mainstream economics, while a Singapore-based crypto wallet outfit is offering better security for investor funds.

AI-powered Shariah compliant quantitative investment firm Sabr Investment Technologies launched in New York and Emirati app O Gold integrated its platform for fractional gold and silver Shariah ownership into botim.

Apex Group sees tokenization as an innovative solution for structural inefficiencies in fund management and StashAway is wooing Southeast Asian investors keen on global Islamic asset holdings while Invesense is seeking to stay ahead of evolving challenges in the AI market teeming with start-ups.

Almowazi Capital will soon launch the iMowazi platform – becoming the first registered crowdfunding platform in Kuwait. Islamic crypto start-up, inshAllah, partnered with digital asset platform Kiln to offer Shariah compliant ethereum staking service.

RIFD, a Shariah compliant platform for SME receivables securitization in Saudi Arabia, secured a strategic investment from Antler, a global early-stage VC firm.

Significant developments

The number of foreign investors in Iran’s stock markets reached 5,100 as of July 2025, up 5.3% from 4,839 a year earlier. Iran’s Cabinet approved new rial currency notes to be issued and distributed starting the Persian year 1406 (March 2027 - March 2028) – where four zeros will be removed from the denominations.

Alternative investment manager Lunate is partnering hedge fund manager Brevan Howard to establish an investment platform to be domiciled in the Abu Dhabi Global Market. MBS Global Investments partnered London-based asset manager Enigma Strategy for Shariah products, equities and derivatives. Hong Kong firm Solowin is applying for a Dubai asset management license for potential Shariah compliant structured products.

Shariah compliant asset manager Afaq Capital is buying over the entire VC portfolio of Falak – described as the first secondary exit of such an investment portfolio. Swiss private bank Lombard Odier will shut its Abu Dhabi office, redirecting clients to its Dubai and Swiss channels.

Swedish firm Loomis opened a 20-tonne vault in Malaysia to tap into the burgeoning Islamic bullion sector. Investing in Dubai real estate with multi-year payment plans with no interest is gaining traction. Tajikistan launched its first Islamic investment firm to facilitate long‑term infrastructure development.

Bahrain’s Ajyad Capital obtained Shariah certification for its upcoming digital trading platform for GCC investors and UAE’s brokerage platform Tabadulat was affirmed that it adheres to Islamic finance principles in offering investing tools for Muslim investors around the world. Halal centralized cryptocurrency exchange Quan2um appointed four experts to form its Shariah advisory council.

Investcorp Capital announced Sana Khater as its new CEO; Vennre appointed Dr Ibrahim Almojel as chairman of its new Saudi unit and SHUAA Capital announced the appointment of Nabil Al Rantisi as Group CEO.