IFN Investor Monthly Round-up: Innovations and strategies abound in October

As the world’s leading resource on Islamic funds, the IFN Investor Funds Database recorded 2,584 public Islamic funds managed by 496 asset management firms, with a combined total of US$675.54 billion in AuM as at the 3^rd November 2025. .

For Islamic money market funds worldwide, total AuM climbed 12.55% in H1 2025 to US$37.6 billion, up from US$33.4 billion at the end of 2024 – Saudi Arabia topping the list with US$17.7 billion, followed by Malaysia at US$9.58 billion. Islamic ESG funds expanded 10.65% in Q2 2025, with total AuM rising to US$1.09 billion from US$985.19 million in the first quarter, across 41 funds.

But overall, there were fewer Islamic fund launches in the first half of 2025 – with only 39 new Shariah funds making their debut, almost a 50% decline from the 77 new fund launches in H2 2024. The slowdown was most pronounced in Islamic equities.

Iran innovations

A surge in prices for saffron, also called ‘red gold’, boosted interest in the two Shariah compliant funds within Iran – the first in the global capital market.

Iran also built a unique solution of a centrally managed ecosystem of six dedicated automotive-focused investment funds by instituting a strict regulatory firewall through the Securities and Exchange Organization’s central Shariah board.

The Iran Mercantile Exchange launched trading of six new commodity deposit certificates – for copper cathode, zinc ingot, rebar, iron ore pellets, automobiles and bitumen, while Vista Atlas Awwal Bamdad VC investment fund is being launched on the Iran FaraBourse.

The IFN Investor Funds Database further tracked a flurry of 11 gold-related investments launched in Iran over the past 12 months, with wealth preservation considered to be among the main drivers for this sharp rise in new offerings.

Offerings and strategies

Discerning investors are remaining calm and if anything, are increasing their exposure to Shariah compliant crypto funds – though the available offerings remain limited. With a risk-sharing model that mirrors the Mudarabah partnership concept and the Musharakah template of profit-and-loss sharing, Burford Capital is pioneering litigation funding as a growing new Shariah compliant asset class.

Arzan Investment Management, with financing commitments from Oaktree Capital Management’s funds, is ready to structure fresh Shariah offerings to capitalize on a pipeline of identified opportunities across the GCC.

More Shariah compliant funds are adopting quant strategies, with US-based Sabr Investment Technologies being the latest to follow Saudi Arabia-based WinVeston Capital and SAB Invest in new launches this year; while Zurich-based Smart Wealth Asset Management is banking on AI tools with finessed computing power to produce better fund returns.

Nigeria’s new entrant Ascent Capital is capitalizing on two Islamic investment market niches with a dedicated SME fund and another aimed at female investors. A Shariah compliant multi-asset fund launched by Standard Chartered in the UAE and Nigeria will later be offered progressively across Malaysia, Bahrain and Kenya.

Pension fund manager Kumpulan Wang Persaraan launched Dana Iklim+, Malaysia’s first climate-focused investment fund and the AgriNext Musharaka Fund was launched to support small- and medium-scale farmers via equity-based partnerships in Bangladesh.

Franklin Templeton, which opened a new Kuwait office, got approval to offer four Shariah compliant actively-managed global funds for qualified investors in Saudi Arabia, while Ethiopia’s Wegagen Capital announced plans to introduce portfolio management services that will include Shariah compliant investment options.

The 27four Global Shari’ah Equity Actively Managed ETF was listed on the Johannesburg Stock Exchange while Indonesia saw the launch of the Eastspring Sharia Income Global Mixed Asset USD Fund.

The Shariah compliant IPO for engineering and construction group ALEC Holdings was oversubscribed by 21 times while an offer for sale was announced for a 30% stake in Almasar Alshamil Education and Pak-Qatar Family Takaful is planning to launch its IPO with 50 million shares open for subscription.

Deals and partnerships

Arcapita sold nine US industrial real estate assets totaling 1.5 million square feet, while Investcorp announced the sale of its US industrial real estate portfolio of 3.5 million square feet in total.

90 North Real Estate Partners has a new co-owner, Urooj International Holding, adding blockchain technologies to the UK firm’s Shariah investment and growth strategy.  SEDCO Holding is making its inaugural investment in the Saudi Arabian infrastructure space with a 25% stake in Tamasuk Holding.

UK PE firms Valpre Capital and Vennre Capital are jointly tapping the booming Greek hospitality market, with a real estate co-investment Shariah model aimed at the rising ranks of wealthy individuals described as HENRYs (high earners, not rich yet). Bahrain’s SICO joined to launch Albaraka Turk Values & Wealth Turkiye Sukuk Fund – to attract more inflow of international capital into Turkiye.

Fintech Mahaana Wealth partnered IGI Life Insurance to launch Pakistan’s first fully digital Islamic voluntary pension scheme, the Mahaana IGI Islamic Retirement Fund.

Partnerships were also forged by SNB Capital with Wa’ed Ventures for joint investment opportunities in the tech start-up sector, Sukna Capital with Partners for Growth to provide specialty Shariah compliant loans to technology companies and SMEs, plus Ajyad Capital with London brokerage Exante for an upcoming Shariah compliant digital investment platform.

Blackstone and Lunate partnered to establish the Gulf Logistics Infrastructure Development Enterprise platform to invest in logistics assets across the GCC region. New Singapore PE firm Sriwijaya Capital signed an MoU with sovereign wealth fund Danantara Indonesia to jointly explore initiatives in renewable energy and infrastructure, digital economy and fintech as well as healthcare and life sciences.

The Janus Henderson MENA Private Credit Fund IV marked its first close with US$125.5 million of investor capital commitments – backed by the Saudi Industrial Development Fund Investment Company, Abu Dhabi Catalyst Partners – a JV between Mubadala Capital and Alpha Wave Global – and Saudi Venture Capital Company.

Opportunities and trends

A recent surge of Islamic investments into the UK office space is seen to be a forerunner for uptakes in major European commercial hubs like Paris, Munich, Berlin and beyond. The rise of wealthy new families in the Asian region is fueling investment flows beyond the traditional real estate markets of the US and Europe as the search expands for suitable prospects in the Shariah investment space.

Malaysia seems to be adopting a gradual policy shift to grow its domestic capital market, where Shariah compliant assets have become a significant component, by moving away from FDIs to woo resident companies to repatriate funds back and also foster growth of single family offices.

The Dubai Multi Commodities Centre launched the DMCC Wealth Hub as a wealth management ecosystem for family offices, private investors, proprietary investment firms and related services.

With over 91 million bank account holders in Pakistan as at June 2024, but only about 1.5 million active investors registered with various fund managers, Al Meezan Investment Management is bullish of its Shariah asset sector’s growth prospects.

Significant developments

Al Marjea acquired Bahrain-based Shariyah Review Bureau. Both entities will maintain their regulatory independence while aligning strategic operations between Riyadh and Bahrain.

The Bangladesh Securities and Exchange Commission imposed lifetime bans on Reaz Islam, CEO and chief investment officer of LR Global Bangladesh Asset Management and its former chairman, Professor Shibli Rubayat-Ul-Islam, for irregularities related to the acquisition and restructuring of Padma Printers and Color, later renamed Quest BDC.

Appointments in Malaysia include Taufiq Iskandar as new CEO at Private Pension Administrator Malaysia, the reappointment of Abdul Rashid Hussain as chairman at Lembaga Tabung Haji, the Malaysian Hajj pilgrim fund, and former Ekuiti Nasional (Ekuinas) CEO Syed Yasir Arafat Syed Abd Kadir as senior adviser at regional PE firm Creador.

Saudi’s Hassana Investment promoted Hani Al-Jehani to be its sole chief investment officer, Bahrain’s Ajyad Capital appointed Farid Bassyouni as head of investments whereas Julius Baer promoted Regis Burger to be CEO of Julius Baer (Middle East), in addition to his current role as head of Middle East and Africa.