IFN Investor Monthly Round-up: March tinged with uncertainties

Continuing to be the leading global resource on Islamic public fund offerings, the IFN Investor Funds Database tracks 2,707 public Islamic funds managed by 519 asset management firms, handling a total of US$449.75 billion in AuM as at the 6^th April 2026.

This database showed that Islamic retirement funds around the world recorded 28.41% in total AuM growth to US$23.97 billion in Q4 2025, from US$18.67 billion in Q3 2025. The 317 Islamic funds domiciled in Europe recorded a 17.71% higher total AuM at US$58.35 billion in Q4 2025, up from US$49.58 billion in Q3 2025. Turkiye was Europe’s largest and fastest growing market, with total AuM in 210 public funds surging 25.91% to US$34.75 billion.

Money market funds led growth in Q4 2025 for Kuwaiti Islamic assets, with total AuM rising 51.16% to US$6.32 billion from US$4.18 billion in Q3 2025. Growth in the US Islamic fund market in Q4 2025 was highly concentrated in a single asset class of gold holdings – highlighting an increasingly uneven allocation landscape.

Among the key insights gained from this database is how a downtrend in global interest rates, spurred by the US Federal Reserve’s triple cuts in late 2025, saw a shift by investors within Indonesia into Shariah money market and Sukuk funds in Q4 2025.

The still-emerging Islamic funds market in Egypt charted a 59.13% rise in overall value across 16 funds in Q4 2025, at US$113.48 million compared to US$71.31 million in Q3 2025. Singapore’s Islamic fund landscape is predominantly objective-driven, with almost half linked to insurance mandates.

Iran impact

Looking beyond the current Middle East conflict, Shariah-focused PE firm Nahda Capital Partners is launching its inaugural fund in April 2026 to raise US$300 million – to invest in SMEs on growth trajectories.

Stone Creek Global is maintaining support for the Shariah repo landscape – anticipating a rising demand for better risk and liquidity management solutions in the GCC region. Global asset managers are pivoting toward high-quality, low-leverage equity filters to hedge against the potential of a 2026 stagflation, creating a functional tailwind for Shariah compliant and ESG-integrated ETFs.

The UAE’s institutional players still see its overall economy as resilient, as three Shariah market participants share their views on short-term volatility and long-term prospects. But concerns over the security of GCC capitals with proximity to Iran could prompt investors onto a tactical retreat toward the UK’s centuries-old legal stability.

Exclusive reports

In the underappreciated Shariah investments health sub-sector of vaccines, in which WHO estimated Halal variants to be valued at about US$2.76 billion, is Malaysia’s Shariah-focused Bio-Angle Vacs – which has commercialized an intranasal vaccine, to help enhance security for mutton supplies.

Aiming to attract investors seeking Shariah compliant assets beyond the usual locations, Chile could appeal with its lower regulatory friction, institutional stability and network of international treaties.

Recent launches of two Shariah compliant public funds in India may lead to more – fueled by demand from younger investors and rising expectations of risk management and corporate governance. Affluent families in Oman are shifting to local Islamic wealth management solutions.

A RM5 billion (US$1.27 billion) war chest, with a hybrid Shariah mandate, is pending under the Dana Pemacu initiative by Malaysia’s largest civil service pension fund, Kumpulan Wang Persaraan (KWAP).

Egypt’s asset management industry is embracing the ESG elements of Shariah compliant investing, as policymakers look to shape a broader ethical capital platform.

Invesense Asset Management is broadening its AI-driven Shariah portfolio to include more sectors plus smaller players involved in networking, data transmission and other infrastructure functions – often described as the “plumbers of AI”.

Deals and offerings

Underpinned by a commitment from KWAP, Catenary Capital – a joint venture between Malaysia’s Foster Capital and UK-based Castleforge – caters to institutional investors seeking structured, Shariah compliant access to real estate opportunities in Malaysia and selected international markets.

Hong Kong real estate-focused Gaw Capital Partners, which is growing its Shariah investment focus via new offices in Abu Dhabi and Riyadh, announced the expansion of its PE platform in the GCC region with the launch of the Gaw Tamkeen Nexus Fund.

Announcements related to the King Salman Park project include a SAR3.2 billion (US$853.3 million) fund managed by SAB Invest – bringing total committed investment to over SAR20 billion (US$5.33 billion) across five major packages in Riyadh.

Government-backed Malaysia Co-Investment Fund announced new schemes for co-investments into initiatives for Malaysia’s aging population involving care-tech, specialized healthcare and senior living facilities.

Malaysia’s BIMB Investment Management launched a Shariah wholesale income fund and the Riyad Healthcare Equity Fund, an open-ended vehicle investing in Saudi market, raised over SAR22 million (US$5.86 million) during its IPO period.

Wahdat Poultry Farm, an egg producer in Pakistan, announced plans to raise PKR637 million (US$2.28 million) through a Shariah compliant IPO. UK fund manager Vennre launched the AI Growth Fund with a curated portfolio that includes pre-IPO exposure and access to holdings by global VCs like Sequoia, a16z, Accel, Coatue and Index Ventures.

Sri Lanka’s Capital Alliance launched the CAL Islamic Money Market Fund, a Shariah compliant open-ended unit trust offering daily liquidity. Pakistan’s UBL and Al-Ameen Funds introduced contributory pension funds for employees of the Government of Khyber Pakhtunkhwa.

Walton Global’s US Land Income & Growth Fund, a private investment vehicle for investors seeking exposure to US residential land assets, was certified as Shariah compliant by Masryef Advisory. Investors Capital – a PE-focused outfit established in mid-2025 with backing of the Almunajem family – obtained its asset management license from the Saudi Capital Market Authority (CMA).

Going digital

Vault22, a fintech backed by Standard Chartered’s SC Ventures and Next176, plans a Shariah compliant personal finance and wealth management offering in the UAE through its Hafiq platform.

PMB Sustainable, a Malaysian company focused on generating carbon credits for landowners, signed an agreement with ISRA Consulting to explore Shariah considerations surrounding carbon credits as tradable assets, carbon credit generation and digital platforms.

UAE’s cryptocurrency exchange Bybit plans to develop additional Shariah compliant products as part of its Middle East expansion strategy. Cryptocurrency token fintech MECCACOIN aims to provide Shariah compliant digital currency options.

The launch of fintech platform Akinda.io further expands access to US financial markets for Muslim investors globally. Fintech Qazwa’s platform is allowing Salam Setara Foundation to channel Waqf funds to support health service financing projects, especially in dialysis service facilities.

Indonesia’s largest Islamic NGO, Muhammadiyah, issued a Fatwa recognizing cryptocurrency as a digital asset suitable for long-term investment – but also deemed it unsuitable as a currency due to high volatility. Bursa Malaysia Securities issued a consultation paper seeking public feedback on proposed regulatory amendments to facilitate the listing and trading of digital currency ETFs.

The Saudi CMA approved amendments to regulations on robo-advisory services in the Kingdom. Al Mabrook forged a partnership with Sustainadility to integrate ESG validation with Shariah compliant real-world asset tokenization.

Turkish fashion platform, Touche Prive, raised US$5 million in Shariah compliant growth funding from Amplify Growth Partnership, a joint venture between Ajeej Capital and Nuwa Capital. The funding will support its expansion across the GCC.

Developing trends

The Mutual Funds Association of Pakistan said total AuM of Islamic fund managers surged to PKR2.1 trillion (US$7.49 billion) as at the 28^th February 2026, close behind the PKR2.25 trillion (US$8.02 billion) for conventional funds. This marked jump from 2025 recorded a growth rate that anticipates Islamic funds total AuM to surpass conventional counterparts ahead of the 1^st January 2028 constitutional deadline for Pakistan’s financial industry to be fully Shariah compliant.

Islamic mutual funds and retail equities, once expected to scale rapidly on the back of Indonesia’s large Muslim population, have lagged in expectations due to continued structural limitations as the local capital market remains dependent on a concentrated domestic investor base.

Prime central London property values will increase by 8.1% over the next five years, according to real estate consultancy Savills, which has partnered with QIB UK, a subsidiary of Qatar Islamic Bank, to inform potential Qatari investors on the latest research about the London residential market.