The IFN Investor Funds Database, the leading intelligence platform on Islamic public fund offerings, recorded 2,782 funds managed by 522 asset management firms, with a combined total AuM of US$409.35 billion as at 12th October 2026.
Enhancing regulatory infrastructure
It is obvious that Pakistan is positioning itself to become a stronger contender for Shariah investments amid its ongoing transition toward a full-fledged Shariah compliant financial system. The Securities and Exchange Commission of Pakistan has been revamping the Republic’s regulatory architecture: this last week, it rehauled its REIT framework to make the structures more accessible, commercially feasible and investable as well as introduced a new subclass under its Voluntary Pension Scheme framework which would allow investors exposure to ETFs. This follows, a string of regulatory enhancement including the recently enacted Chapter 4A of its regulations governing Shariah compliant securities trading, setting out definitions, eligibility criteria for Shariah compliant securities brokers and ongoing compliance requirements.
Meanwhile in Kyrgyzstan, the central bank has amended regulations to align rules on Musharakah and diminishing Musharakah contracts with amendments to the country’s civil code and international Shariah standards. We view this as a positive sign toward strengthening its proposition to capture greater Shariah flows, supported by the fact that the Kyrgyz government recently met with the IsDB Group to explore potentially expanding their cooperation in the energy sector, which may see the latter investing into the country’s hydropower plants, substations, power lines, modernization projects and digital technologies.
Raising funds
We have seen Malaysian investment managers turning to the Islamic capital market to raise money to support their operations: Al-‘Aqar Healthcare REIT has lodged two Sukuk programs, which include provisions for sustainability-linked offerings, worth a combined nominal value of up to RM3 billion (US$714.29 million) with the Securities Commission Malaysia. Proceeds from the exercise will go the Islamic REIT’s investments, the refinancing of its existing and future Islamic financings and meeting its general corporate requirements. Separately, Permodalan Kelantan, an Islamic investment and social finance institution, auctioned a 10-year Islamic medium-term note.
Boosting investments
Islamic cross-border investments have been active, with the GCC featuring prominently. UAE-headquartered BlueFive Capital, through its Islamic investment platform BlueFive786, will be entering Southeast Asia through its investment in Indonesian firm Majoris Asset Management. If Indonesian authorities agree to the deal, Majoris, which offers Shariah investment products to more than 700,000 retail customers and 50 institutional clients, will be rebranded as BlueFiveMajoris.
Meanwhile global asset manager Janus Henderson has secured US$191 million in investor commitments at the second close of its Shariah compliant MENA Private Credit Fund IV, representing nearly 64% of its US$300 million fundraising target, with participation from institutional investors and family offices in Saudi Arabia and the UAE.
Private capital is an emerging theme: Dubai-headquartered ASB Capitalhas partnered with global investment firm StepStone to launch the ASB StepStone Private Financing Fund, to provide investors access to a Shariah compliant strategy focused predominantly on senior secured financing to US middle-market companies. Meanwhile ADI Foundation,an Abu Dhabi-based non-profit blockchain organization and digital investment platform Tokinvest will also be exploring private credit as part of their real-world asset tokenization MoU, which positions a US$100 million tokenized Sukuk as the partnership’s primary target asset.
It is also worth noting that MASNA Ventures Sentinel Shield Fund I, Saudi Arabia’s first VC fund dedicated exclusively to the Kingdom’s defense, aerospace and advanced industrial manufacturing ecosystem, is seeking a Shariah compliant status – the fund has appointed Al Marji Advisory Company to provide independent Shariah governance.
Major moves
Maldives Awqaf Investments has welcomed Yameen Indress – the former managing director of the country’s Hajj fund – as managing director. It also named Sheikh Izzudeen Adnan, head of Zakat House, as chairman.
