2025 proved to be a banner year for global Islamic funds tracked by the IFN Investor Funds Database, with total AuM climbing 32.18% year-on-year to reach US$438.55 billion at the year-end – with gains reflecting broad-based expansion across major asset classes.
Commodities registered the strongest percentage increase, with total AuM surging 160.99% over the year – fueled by spiking gold prices. Cryptocurrencies followed with a 148.7% rise, highlighting sharp relative growth from a low base and increased appetite for alternative Shariah compliant exposures, which remain strong despite recent volatility.
Among income-oriented segments, Sukuk funds posted a 56.81% increase in total AuM, while money market funds expanded 43.82%, underscoring continued demand for liquidity and capital-preservation strategies. Fixed income instruments also recorded solid growth of 29.65%.
Traditional asset classes saw comparatively moderate expansion. Mixed-asset funds grew 13.77%, equity funds rose 12.83% and real estate funds posted the smallest gain among major categories at 9.64%.
Offering strategies
Empire Global Finance aims to help the GCC region’s elite transition from just wealth management to Shariah compliant ways for inter-generational transfers without exposing illiquid assets to taxation issues and other financial vagaries.
Investcorp, an established asset manager, is poised to achieve long-term gain by partnering with ‘little brother’ Shariah fintech real estate investment platform Stake.
Gulf Partners Group seeks to address the deployment dynamics that handicaps the capital-rich GCC region – where segments of its private markets remain structurally underfunded, particularly in middle markets.
Newly-launched UTI Nifty500 Shariah Index Fund, tracking counters in the Nifty500 Shariah Index, becomes the sixth Shariah fund domiciled in India. Al Dhabi Capital Global Shariah Fund, domiciled in Abu Dhabi Global Market, will provide investors access to regional and global markets under a Shariah governance framework.
Egypt’s CFH Asset Management plans to launch four new investment funds in 2026, including a Shariah compliant equity fund and a metals fund.
Fintech
Riyadh-based fintech Safqah Capital, which offers Shariah compliant debt financing for smaller property developers, raised US$15.2 million from over 12 backers – led by anb Seed Fund, Shorooq and Rua Growth Fund, with participation from Sharaka Capital, COTU Ventures, Sadu Capital, 500 Global, Suhail Ventures, MEVP, Waad Invest, JOA Capital and others.
Sweden-based Shariah real estate investment platform Skargard relocated to Luxembourg to expand investor pool for its Nordic and European real estate offerings. UAE-based fintech InvestSky, which offers Shariah compliant fractional share trading, secured a fintech experimental permit from the Saudi Capital Market Authority.
Malaysian jeweler Tomei Consolidated launched GoldNow, a Shariah compliant app for the purchase, accumulation and storage of gold.
Regulatory announcements
Bahrain Bourse launched a three-year Capital Market Development Plan for 2026-28, outlining 46 initiatives to enhance market infrastructure, diversify product offerings and deepen liquidity in the Kingdom’s capital markets.
The National Sharia Council – Indonesian Ulema Council approved a Fatwa governing bullion business for Shariah guidance for gold savings, gold custody, gold trading and gold financing, after consultations with the Financial Services Authority (OJK) and industry players including Bank Syariah Indonesia and Pegadaian.
The Securities Commission Malaysia announced the appointment of LC Wakaful Digital as the first social exchange platform operator in Malaysia.
The Bangladesh Securities and Exchange Commission is to take action against sponsor-directors of listed companies who have failed to meet minimum shareholding requirements, that is, a 30% joint stake including in Islamic finance institutions.
Significant developments
Schroders, which operates Shariah funds, announced that its board has agreed to a takeover offer by Pantheon – a newly-incorporated subsidiary of Nuveen, a Teachers Insurance and Annuity Association of America company.
The Central Bank of Bahrain promoted Noor Altajer to be its new head for regulatory policy, licensing and regulatory policy directorate. The Indonesia Stock Exchange appointed Jeffrey Hendrik as its interim president director.
Investcorp’s Saudi Arabia subsidiary and SNB Capital announced a partnership for cooperation on investment opportunities in Saudi Arabia and internationally, spanning PE and real assets.
