IFN Investor Monthly Round-up: July features volatile S&P 500, benign Shariah index

As of the 4^th August 2025, the IFN Investor Funds Database recorded 2,536 public Islamic funds managed by 486 asset management firms, with a combined total of US$534.72 billion in AuM.

In Q2 2025, all regions - including Africa, the Americas, Asia Pacific and Europe, recorded an increase in total AuM, while the Middle East experienced a decline, with AuM decreasing from US$425.10 billion in Q1 to US$413.51 billion in Q2.

The opening month of Q3 2025 had both tranquil and heart-stopping market moments, where the S&P World Shariah Index gained over 2% for July as Islamic equity funds became pockets of stability amid continued US tariff battles with friends and foes alike.

Market expansion, offerings

The US – a frontier of western finance that has proven to be a tough nut for Shariah practitioners to crack – is slowly yielding in the form of a PE market, which could open a substantial window for Islamic investments.

Change is also coming to the US Shariah scene as the domestic Islamic market grows on the power of fintech versus the previous environment, where capital largely flowed in from overseas.

Global financial crisis and other market meltdowns might have been better managed – if not averted altogether – by Murabahah and Ijarah sale-based contracts designed to overcome lending deficiencies, excessive leverage and opaque derivatives, HSBC India Manager Moeennawaj Pirjade shared.

Islamic gold banking expert Aittreya Sriram Ramanujam is envisioning a Shariah model of "commodity banking", where asset-backed financing and investing will apply to all commodities, with crude oil as its flagship.

The Dubai Gold and Commodities Exchange reported over one million contracts traded in H1 2025, representing a 30% increase in daily volumes compared to H1 2024.

Oman Investment Authority, one of the world’s top 10 sovereign wealth funds, reported US$4.12 billion in net profit for 2024 from managing some US$53 billion in assets.

A survey by Bank of London and The Middle East predicts that Gulf investment into UK commercial real estate could rise 11-20% in 2025 and reach GBP3.4 billion (US$4.5 billion) in 2026.

Fitch Ratings projects growth for Islamic derivatives market in select regions, driven by new product rollout and supportive legislation.

The UAE Banks Federation has committed to investing more than AED1 trillion (US$272.29 billion) towards sustainable and green finance by 2030, in alignment with ESG goals.

Fund narratives and deals

With five months left in the 2025 calendar, technology remained at the forefront of the narrative in Shariah markets, with the Dubai-based AI Focus Fund reporting it had delivered a 28.4% gain in the last three months and 30% year-to-date to investors counting on exponential returns from the world’s top AI stocks.

Beyond its historic status as the first-ever Sukuk listed on the Colombo Stock Exchange, the Shariah compliant capital instrument from renewable energy firm Vidullanka marked significant advancements for Sri Lanka's domestic financial industry fully subscribed within hours of its debut.

Griffin Private Equity (Dubai), having deployed close to US$500 million across six projects since 2023 as an exclusive club for affluent investors, is seeking to create a multiplier impact on target communities.

Cordoba Capital Markets launched its seventh profit participating note since the Shariah compliant instrument was first made available in November 2024.

Manulife Investments launched its first Shariah compliant global equity fund in Malaysia, adopting an active approach to invest in 40 to 60 large cap companies.

Arqaam Capital and ASB Capital teamed up to launch the ASB Global Sukuk Fund, a protected cell company seeking to provide Shariah compliant fixed income opportunities to a wide range of institutional and high-net-worth investors.

Bank Syariah Indonesia launched an Islamic Endowment Fund at the BSI International Expo 2025, partnering with key foundations to support various community welfare programs.

In the UAE, Sukna Capital is eyeing a Saudi investment platform that provides investors curated access to alternative asset classes that provides opportunities in VC deals, direct financing, real estate and PE.

InvestGB, Gulf Bank's investment arm, launched its second Shariah compliant money market offering with weekly liquidity, targeting low-risk Islamic investments like deposits and investment-grade Sukuk.

UAE-based asset manager Aditum introduced two new feeder funds under its Global Access ICC platform, allowing investors to tap into fixed income strategies managed by UK-headquartered Pimco.

Umm Al Qura for Development and Construction in Saudi Arabia is partnering with Aljazira Capital and Naif Al Rajhi Investment Company to launch a SAR1.4 billion (US$373.3 million) real estate private fund. This fund will develop hospitality, residential and commercial components within Mecca's Masar Destination.

Afrinvest Asset Management launched an open-ended Shariah compliant unit trust with a fund size of NGN2.5 billion (US$3.25 million), to invest in Shariah compliant fixed-income instruments, equities and other permissible Islamic contracts.

UK MRP Premier Group and Singapore’s Auspac Investment Management partnered to facilitate cross-border real estate investments that would draw on MRP’s experience in UK real estate development and advisory as well as Auspac’s regional financial expertise.

Bangladesh’s Social Islami Bank signed a pact with the country’s National Pension Authority to support public access to a universal pension scheme through Shariah compliant and tech-driven solutions.

India-based Stride Ventures marked its entry into the GCC market with the first close of its Abu Dhabi Global Market-registered Fund V that provides Shariah compliant, non-dilutive venture debt to high-growth start-ups across the region.

Malaysia’s largest public sector pension fund, KWAP, appointed Climate Fund Managers and Malaysian investment manager Argos Partners to establish and manage the Shariah compliant Malaysia Climate Infrastructure Fund.

Bangladesh merchant bank Sandhani Life Finance partnered with Bangladesh General Insurance Company to launch a Shariah compliant mutual fund.

Bank Syariah Indonesia launched the Islamic Endowment Fund, an initiative aimed at enhancing the role of cash Waqf in developing the country's Islamic financial ecosystem.

ASB Capital, an asset management firm with US$5.2 billion in AuM, launched the ASB MENA Equity Fund in partnership with Amwal Capital Partners to invest in publicly listed equities across MENA markets.

SAB Invest is a Shariah compliant, open-ended private credit fund that plans to invest in unlisted and listed Sukuk, venture debt for tech-enabled firms, structured corporate debt and infrastructure financing across Saudi Arabia and the GCC.

Koperasi Pelaburan Kakitangan Bank Muamalat Malaysia, an Islamic savings cooperative, partnered with App Genius, a gold trading mobile app. RHB Islamic forged a partnership with estate administration and legacy management solution provider, Amanah Raya, to expand its wealth management service offerings.

Turkish Airlines inked its first Islamic aircraft finance deal to buy new and an unspecified number of Airbus A350 planes. The Saudi National Bank has provided Shariah compliant financing worth US$324.8 million for Bahri to acquire a fleet of four very large crude carriers.

Abu Dhabi sovereign wealth fund Mubadala is reportedly in discussions to acquire additional shares in digital bank and payments group Revolut in a US$100 million deal.

Regulatory action

Bahrain is leading the charge in digital Islamic finance with new comprehensive regulations for Shariah compliant stablecoins that became effective the 2^nd July 2025. Malaysia, a long-standing pioneer in Islamic finance, is playing catch-up with its own rules that advocate a cautious, reactive approach to digital assets.

Foreign individuals and entities can own and invest in real estate across designated zones in Saudi Arabia from January 2026, following regulatory overhauls. Saudi Arabia’s sweeping market reforms will also allow foreigners to trade directly on the main market.

Wakaf Masyarakat Singapura, managed by the Islamic Religious Council of Singapore, is to receive pension funds and insurance benefit payouts that will allow Muslims in the country to legacy-designate their contribution savings parked in the Central Provident Fund.

Egypt’s Financial Regulatory Authority has opened new financing pathways for SMEs and real estate in the North African country via a suite of decisions related to the licensing and establishment of companies operating in those sectors.

The Pakistan Credit Rating Agency became the first rating agency to be listed on the Pakistan Stock Exchange's Growth Enterprise Market Board with the IPO oversubscribed more than four times and raising nearly PKR396.2 million (US$1.39 million). 

Hejaz Equities Fund (Managed Fund) in Australia obtained Shariah compliance certification from the Australian National Imams Council. The certification validates the fund's adherence to Islamic principles for investors.

Malaysia's Federal Territory Islamic Religious Council designated Bank Rakyat as the nation's first trustee for public cash Waqf funds, launching the Jariah Al-Barakah humanitarian initiative, to streamline the collection and management of contributions.

Bahraini investment advisory firm Aurion Group, which has a focus on AI-powered intelligence, launched the Digital Asset Rating Agency, Malaysia’s first ESG based rating service. The Malaysia Gold Association established a Shariah advisory board to provide guidance to stakeholders within the precious metals sector.

Bank Islam Malaysia was fined RM3.44 million (US$809,230) by central Bank Negara Malaysia for breaches since 2023. The Kuwaiti Capital Market Authority (CMA) cancelled the registration of Maqasid Sharia Consulting Company from its register of external Shariah audit offices.

The Saudi CMA approved Alpha Capital’s public offering of its Alpha Capital Freestyle GCC Equity Fund and a license for Osool & Bakheet Investment Company to conduct arranging activities in the securities business.

Egypt's Financial Regulatory Authority gave the green light to the establishment  of the Bokra Real Estate Investment Fund and the Bokra Investment Fund for Minerals Investment.

Fintech developments

Pakistan President Asif Ali Zardari approved the implementation of the Virtual Assets Ordinance 2025, establishing the Pakistan Virtual Asset Regulatory Authority as an autonomous federal body to regulate cryptocurrencies and virtual assets.

FOHLE Finance revealed a new kind of high-tech Islamic crypto investment built on a decidedly old-fashioned principle: trust. The Singapore-based crypto wallet operator’s non-custodial feature meant customers were "their own banks" holding on to their own cash.

Leonteq Securities is making Shariah compliant investing more accessible by automating its structured products to expand the reach for investors in the GCC.

UK investment platform Vennre, having recently signed up Saudi VC firm Khwarizmi Ventures, is making inroads in the Kingdom while preparing to launch its fully regulated operations.

Malaysian P2P firm Microleap is set to expand its Shariah compliant operations into Indonesia and the Philippines by early 2026, seeking to attract more institutional investments.

Sahem Financial Platform Company secured a Financial Technology Experimental Permit from Saudi authorities to test its investment offering in debt instruments.

UAE Islamic investing platform, Tabadulat, secured in-principle approval from Abu Dhabi authorities to launch operations and provide access to Halal investments.

Digital platform Manzil Invest USA launched Shariah compliant investment solutions specifically tailored for Muslim Americans, accessible via apps.

Qatar-based fintech company PayLater, which offers Shariah compliant solutions, has received an investment from LuLu Alternative Investments , which has made an initial foray into Doha’s financial sector.

Zen Tech signed a non-binding letter of intent on the 3^rd July 2025 , to acquire a 30% stake in Souqa Fintech, a Shariah compliant payment services provider, through a new share issuance.

Tali Ventures, the corporate VC arm of stc group, led a funding round for fintech Tarmeez Capital, transitioning it from a bootstrapped company to one backed by a national investor.

Alpaca, a US-based self-clearing broker-dealer, and ZAD, a Kuwait-based digital investment platform, have partnered to offer global investors access to Shariah compliant US stocks and ETFs.

In the UAE, cryptocurrency trading platform BurjX is introducing Shariah compliant crypto products.

Significant moves

Investcorp Capital appointed Sana Khater as its new CEO effective the 1^st September 2025. Nitasha Shankar rose to the rank of CIO at Quantum Advisors, which recently launched an open-ended equity fund benchmarked to the NIFTY 500 Shariah Total Return Index.

Wethaq Takaful Insurance Egypt hired Reda Ahmed as CEO. Elmie Aman Najas, previously CEO at AIA Public Takaful, emerged as new president director at Indonesia’s Allianz Life Syariah.

Halida Nurina turned up as counsel at MHMS Advocates after parting ways with Bank Aladin Syariah, where she was head of legal and compliance.

Amin Abdul Majid was appointed managing partner at Zaid Ibrahim & Co, succeeding Gilbert Gan, who moved up to senior partner at the legal firm.

RDS Partnership appointed Hurriyyah Kamaruzzaman as corporate, commercial and Islamic finance partner, after his prior work at Feroz & Co – where he served as senior legal associate.

Oman’s Bank Nizwa made Saif Abdullah Rawahi deputy general manager of wholesale banking and promoted Sabri Balhaf to assistant general manager of medium corporate banking.