Several global hotspots – US, Russia and Iran – were unlikely newsmakers in the Islamic investment universe over the past week, where crowdfunding and real estate also made headlines.
While US President Donald Trump’s war against renewable energy has intensified in his second term of office, some continue to see funding opportunities and trading momentum in the space, which also includes Islamic plays.
Meanwhile in Russia and Iran where sanctions are still enforced, Islamic investments have gained in appeal. The success of Russia’s Islamic banking pilot project is drumming up demand and pushing players to offer Shariah compliant investment avenues, experts told IFN Investor.
In an interview with IFN Investor, Parto Aftab Kian Investment Advisory CEO Mehdi Tahani shared that due to pressures on the Iranian economy, the firm had pivoted its investment strategy to gold instead of equities, and this has paid off.
On that note of investment opportunities, UK’s Shariah compliant Al Rayan Bank surveyed high-net-worth-individuals across the GCC and found that all are keen to make new investments in or widen their exposure to the UK’s property market over the next five years, committing to spend an average of US$92 million, marking potential for many of these transactions to be structured Islamically.
New players
More entities have entered the Islamic space as they begin rolling out Shariah compliant products.
Islamic/swap-free accounts for trading in contract for differences were introduced for the Xlence platform from Morocco. This investment offering covers trades in forex, commodities, stocks and other markets – without paying overnight interest.
Over in Saudi Arabia, investments via P2P platform The Lending Hub have been declared Shariah compliant, following due certification of this outfit’s business model by Shariyah Review Bureau.
Deals and offerings
We learn from KIB Invest CEO Jamal Al-Barrak that the Kuwaiti investment manager plans to complement its latest Islamic fund, its first in the local currency space, with strategies in other currencies to provide investors with diversification.
Other new Shariah funds are also in the making:
Egypt’s Al Baraka Capital plans to launch a new Shariah compliant fund during H2 2025. This EGP50 million (US$987,103) fund will invest in EGX33 Shariah index companies, said Managing Director Sarah Hosni.
Wealthvest is launching the Shariah compliant Wealthvest Shariah Equity 27four Fund – which aims to achieve both capital and income growth by investing in both South African and foreign-listed equities.
The Derayah Nomu Market Fund public offering was approved by Saudi Arabia’s Capital Market Authority. Fund manager Derayah Financial Company recently closed its IPO made its debut on the Tadawul market on the 11th March 2025.
UAE’s Aldar Investment Properties raised US$500 million through a 10-year green Sukuk to refinance sustainability-accredited real estate within the portfolio of this Aldar Properties subsidiary.
System enhancements
Regulators in key Islamic markets are reforming their investment infrastructure in pursuit of a more efficient ecosystem.
The Qatar Stock Exchange for example waived its trading fees on exchange-traded funds (ETFs) from the 16th March 2025 to enhance market liquidity. This move reduces the total ETF trading cost from 27.5bps to 22bps.
Meanwhile, the Securities and Exchange Commission of Pakistan proposed an alternative dispute resolution system, like mediation and arbitration models – stating that traditional legal systems and courts may not always fully align with Islamic principles, potentially leading to outcomes that are not Shariah acceptable.
Other developments
Tariq Ali joined Pakistan’s Meezan Bank as the head of Investment Banking & Shariah Advisory and First Punjab Modaraba appointed Asim Jahangir Seth as the company’s new CEO.
Net investment profit for Saudi Reinsurance rose 629% for the year ended the 31st December 2024, mainly due to its capital gains from the sale of its stake in Probitas Holding amounting to SAR365.9 million (US$97.57 million).
