The first half of 2025 was a volatile mix of global anxieties and surprising market resilience, with threat from the ongoing Gaza and Ukraine conflicts remaining plus the quick flaring of India-Pakistan and Israel-Iran clashes. While the unpredictable specter of Trump’s trade tariffs continues to loom, the S&P 500 clawed its way back to positive territory – even managing a record high despite a calamitous start.
Amid the global ebb and flow of economic forces in the past six months, the Islamic markets witnessed their own brand of ‘shock and awe’ – not in conflict, but through an array of groundbreaking developments and audacious new product offerings.
Nevada trusts to agriculture
Nowhere was this more evident than in the unexpected emergence of Nevada, a state synonymous with glitz and gaming, now strategically positioning itself as a frontier for Shariah compliant trusts in the US, a testament to the sector’s unconventional dynamism.
Vertical farming is emerging as a growing area for Shariah compliant investments among PE firms as pioneer Singapore shows the way for urban and desert cities facing space limitations such as the UAE, Bahrain, Qatar and Saudi Arabia.
In Nigeria as well, the agri market is ripe for Shariah investors due to a physical, productive and risk-bearing nature that aligns with Islamic economic principles. As a key player in Africa’s agribusiness market, which is projected to reach US$1 trillion by 2030, Nigeria’s agriculture contributes significantly to the continent’s GDP and employment.
UK to Indonesia: PE growth
Islamic PE isn’t just growing but also reaching previously unexplored frontiers.
London-based Cur8 partnered with Everest Pharmacy in Manchester to redefine community pharmacies in the UK and increase investor accessibility in the sector, allowing Muslims to jointly invest in buying ailing pharmacies that can be rehabilitated to run for a profit and resold later.
Jakarta-based Halla Solusi Investama is assisting profitable Muslim-owned SMEs, overlooked by institutional capital due to structural and religious mismatches, particularly companies making over IDR10 billion (US$625,000) per year but regarded too ‘informal’ by banks and too ‘niche’ for VCs.
Indonesia’s BMoney enhanced its privilege investment platform by adding Batavia India Sharia Equity USD, a Shariah compliant mutual fund from Batavia Prosperindo Aset Manajemen, that holds Indian equities.
Africa: Tunisian account pledges, new Egyptian dealers
Account pledges are emerging as a crucial instrument for Shariah project financing in Tunisia, affording lenders enhanced control and visibility over cash flows and providing borrowers flexible collateral options as the North African nation embarks on major power, oil and gas as well as mining works.
Egypt’s Financial Regulatory Authority approved seven new dealers for government securities and financial instruments in the secondary market, including five banks and two securities firms.
Pakistan: Shariah pension, blockchain and Islamic account access
Pak-Qatar Family Takaful introduced Pakistan’s first Shariah compliant guaranteed pension plan for life, named the Lifetime Kafalat Plan.
ZIGChain, a Pakistani Shariah compliant blockchain for tokenizing real-world assets, officially launched its Mainnet Beta and Genesis Block on the June 25th, 2025.
The Securities and Exchange Commission of Pakistan, meanwhile, formed a committee to streamline the capital market account opening process. The panel will evaluate existing procedures and recommend improvements for efficiency and user-friendliness, including representatives from key financial bodies.
UAE to Malaysia
UAE-based Islamic digital bank ruya has partnered with Ignyte, a government-backed start-up ecosystem, to provide Shariah compliant financial tools, mentorship and co-hosted events to founders.
UAE luxury properties developer Binghatti Holding’s new Shariah compliant asset management arm, Binghatti Capital, is tasked with managing approximately US$1 billion in private credit and real estate strategies for institutional and qualified investors.
Private investment firm Siraj Holding is expanding into Shariah compliant strategic consultancy and M&A advisory services through a new joint venture, AWR Lloyd Gulf Partners, headquartered in Abu Dhabi, formed with Hong Kong-based AWR Lloyd to serve clients across the Middle East, Turkiye and Africa.
Asia Vision Capital, a Malaysian firm, is using a dual-fund approach of distinct conventional and Shariah compliant structures for its involvement in the Johor-Singapore Special Economic Zone in a bid to achieve the best outcome through different investment mandates.
Malaysia’s RHB Asset Management launched the dollar-denominated RHB Shariah Multi Asset Fund for sophisticated investors to gain access to the HSBC Global Funds ICAV – Shariah Multi Asset Fund that opens pathways to equities, fixed income, collective investment schemes, transferable securities, cash and foreign direct investments.
Canada: Shariah self-policing, Islamic equity resilience
Hillcore Group is showing practice is more important for Shariah compliance than pure certification. The Canadian firm has integrated Shariah principles into its PE fund structures since 2012 without any Fatwa guidance – underscoring its respect for global Muslims and the ethical investing opportunities they offer.
Data tracked by the IFN Investor Funds Database showed the resilience of Canadian Shariah compliant equity funds in Q1 2025, with a 5.98% increase in AuM to US$691.22 million, primarily invested in world equities. This contrasts with US Islamic funds, which saw a 15.09% decline due to their focus on volatile US equities.
Saudi continuance
Saudi Arabia continued to be in Islamic investment headlines through June, where Eram Holdings pushed hard the ‘made-in-Saudi brand’ of manufacturing status through an integration of power electronics and advanced microchips.
Naif Alrajhi Investment and Aljazira Capital launched a SAR1.7 billion (US$453.33 million) private real estate investment fund to develop luxury residential and mixed-use projects in Riyadh and Jeddah, supporting significant urban development in major Saudi cities.
The Saudi Capital Market Authority officially approved the public offering of ANB Capital’s Shariah compliant Saudi Nomu Market Fund, marking a significant development for Shariah compliant investment opportunities in the region.
SAB Invest successfully exited its first real estate investment, the Azure Lamara compound.
Moves
Dan Rudd has been appointed CEO of HSBC Global Asset Management (UK) and head of UK wholesale, where he will oversee the firm’s UK business development and lead the UK wholesale sales team. Previously, he successfully grew wholesale businesses across the Middle East, Northern Europe and the UK.
Dentons announced the relocation of corporate partner Nik Colbridge from London to its Dubai office, aimed at expanding its equity capital markets practice across the Middle East. Nik leverages his expertise in public and private international equity, securities offerings and joint ventures since joining the firm in 2015.
Law firm Latham & Watkins significantly bolstered its team by hiring an 11-strong group from rival A&O Shearman, following the April 2025 arrival of industry veterans Franz Ranero and Jeremiah Wagner. The firm is reportedly building a transatlantic private capital offering encompassing collateralized loan obligations, asset-backed lending and fund finance – key foundations for popular Shariah compliant instruments in the Middle East.
Derayah Financial appointed the Shariyah Review Bureau to form a Shariah supervisory committee comprising chairman Sheikh Dr Mohammed Ali Elgari besides Sheikh Dr Khalid Abdullah Al-Muzaini and Sheikh Dr Salah Fahad Al Shalhoob to oversee operations, Shariah compliance products and annual audits.
