The IFN Investor Funds Database, the leading intelligence platform on Islamic public fund offerings, recorded 2,782 funds, up two funds from last week, managed by 522 asset management firms, with a combined total AuM of US$409.04 billion as at 19th October 2026.
Saudi leads
Saudi Arabia has been driving total gains in Islamic money market funds across the Middle East. Regional AuM rose 8.71% in Q2 2026 to US$32.89 billion, marking the fourth straight quarterly gain for the market, according to the IFN Investor Fund Database.
Saudi-domiciled funds grew 7.41% to US$29.27 billion. The Kingdom now holds 89% of regional assets, and its funds have grown in each of the past four quarters, by between 7% and 11.5% each time.
Kuwait, the second-largest market, rebounded 21.47% to US$2.46 billion. The recovery followed a 51.5% plunge in the first quarter while smaller markets posted some of the strongest quarterly moves, with the UAE being the only domicile to shrink.
In other Saudi news, home grown Shariah compliant Funding Souq secured a strategic investment of an undisclosed amount from restaurant and financial technology provider Foodics to expand embedded financing solutions for SMEs as part of the former’s aim to facilitate US$1 billion in SME financing over the next three years.
Indonesian activities
The National Sharia Council of the Indonesian Ulema Council is reportedly collaborating with the Indonesia Deposit Insurance Corporation to study Shariah compliant cryptocurrency instruments, with plans to engage the Financial Services Authority on developing a regulatory framework.
Meanwhile, the Indonesian Hajj fund management agency signed an MoU with Bank Islam Brunei Darussalam to explore collaboration in Islamic finance, investments and pilgrimage-related services.
Expanding fund universe
New fund launches and partnerships have been led by firms in the Middle East and Africa this past week.
In the GCC, Bank Muscat rolled out a new Shariah money market fund. A new Islamic fund offering exposure to Chinese equities is in the works as part of Qatar’s Lesha Bank’s cooperation with China Asset Management (Hong Kong). The fund will adopt an actively managed ‘All-China’ equity strategy targeting sectors including technology, advanced manufacturing, pharmaceuticals and renewable energy. GFH Bank, on the other hand, has closed its US$63 million Shariah compliant Power Systems Opportunities Fund. It has been a busy week for the Islamic investment bank – it entered the aviation segment for the first time by joining Bridgepoint Group and AIP Capital in a venture targeting a commercial aircraft engine portfolio worth more than US$1 billion.
Over in Africa, Nigeria’s UTL Asset Management has officially launched a Halal fund. Emirates NBD Egypt will be expanding its Islamic and conventional fund distribution network, having signed an agreement with EFG Hermes to offer two of its equity funds.
Preferred funding route
Malaysian investment managers continue to tap the Islamic capital markets to raise capital – a reflection of the country’s deep domestic market where Shariah instruments are mainstream. IOIPG REIT Capital is seeking to raise up to RM5 billion (US$1.22 billion) through a Sukuk Wakalah program while sovereign wealth fund Khazanah Nasional successfully printed RM400 million (US$97.84 million) in six-month Islamic papers.
