Islamic PE isn’t just growing but also reaching previously unexplored frontiers with Cur8 Capital in the UK and Halla Solusi Investama in Indonesia helping to bridge funding needs.
London-based Cur8 partnered with Everest Pharmacy in Manchester to redefine community pharmacies in the UK and increase investor accessibility to 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.
Asset growth
Data tracked by the IFN Investor Funds Database for Islamic ETFs showed varied performances globally in Q1 2025, with Europe maintaining its lead in AuM and Africa recording the highest growth rate. Europe’s Islamic ETF AuM increased by 7.61% quarter-on-quarter, reaching US$4.13 billion, with Turkiye leading regional performance.
Islamic equity funds in the GCC region experienced moderate growth in Q1 2025, surpassing the broader Middle East industry average, according to the IFN Investor Funds Database. Kuwait led the regional performance with its 12 Islamic equity funds achieving an average three-month return of 3.79% due to strong active management and diversified allocations.
Deals and offerings
Thai-owned BCIB Holding Co made a move to acquire a 20% equity stake in Delaware-incorporated Amwalus which operates in Oman to create Shariah-financed housing, infrastructure and sustainable community development across the GCC on a budget.
Standard Land will launch a series of funds in late June 2025 to stimulate construction activity in Germany and raise up to EUR10 billion (US$11.39 billion) over four years through five real estate segments.
Europe Arab Bank launched Shariah compliant financial solutions, which include Islamic current and fixed-term deposit accounts for private banking and corporate clients. It plans to introduce Shariah compliant property finance and investment products next.
Investment platform Tillit expanded its Shariah offerings by adding the HSBC Shariah Multi Asset Fund to its platform. This follows the launch of other Shariah funds in March 2025 for workplace pensions and retail customers.
Ajman Bank signed an agreement with asset management firm Azimut Group to provide investment solutions to its wealth management clients. This partnership aims to broaden the bank’s range of fixed-income opportunities.
Emirates Islamic partnered with Swiss-based Leonteq to adopt its new Shariah compliant trust certificate issuance and offering program to expand its wealth management product offerings.
Regulatory moves
The State Bank of Pakistan (SBP) clarified that its 2018 directive against virtual asset dealings was due to a lack of legal framework, not illegality. The SBP and finance division are now collaborating with the Pakistan Crypto Council to draft regulations for consumer and investor protection.
The Saudi Capital Market Authority (CMA) confirmed that Aditum Capital Company fulfilled all regulatory requirements to begin its licensed activities. This approval covers managing investments and operating funds in the securities business.
CMA also affirmed that TAM Capital Company completed the necessary requirements to commence its business which include managing investments, operating funds and arranging services within the Kingdom’s securities sector.
Egypt’s Financial Regulatory Authority approved 11 entities, including several Islamic banks, for registration as new dealers in government securities and financial instruments. This move is part of efforts to regulate and develop financial markets and maintain stability.
An extraordinary general meeting has been scheduled for the 2nd July 2025 to vote on the proposed conversion of the Jabal Real Estate Investment Fund into a Shariah compliant fund. The meeting will be conducted electronically via the Muscat Clearing & Depository Company website, with a second EGM planned if the quorum is not met.
Several Australian industry leaders have launched the Islamic Finance and Investments Association to advance Islamic banking, finance and investment in the continent. Founding members include Salaam, Islamic Co-operative Finance Australia and Ijarah Finance, among others.
