The IFN Investor Funds Database, being the leading resource on Islamic public fund offerings around the globe, recorded 2,646 public Islamic funds managed by 502 asset management firms, with a combined total of US$717.34 billion in AuM as at the 19th January 2026.
A key trend unveiled using insights from this database is that of reduced Shariah equity fund launches in 2025 – as the sector shrugged off the lingering impact of ultra-low, then high interest rates, plus various financial impetus by governments to counter the pandemic-induced economic downturn.
Separately, Shariah compliant REIT funds displayed uneven regional dynamics across property markets, with Europe emerging as the strongest performing region. Shariah compliant ESG funds also recorded growth concentrated in a few key European domiciles.
Sectoral opportunities
Rapid growth of residents in the UAE’s main Abu Dhabi and Dubai emirates, with each already housing over four million populations in 2025, is also creating a growing opportunity for investments in educational facilities.
Piccadilly’s new GBP400 million (US$535.41 million) Brompton Capital fund, which targets recovery in the UK commercial sector, aims to capitalize on the UK property market entering a “new, more positive cycle” in 2026.
UK-based Predictiva is testing whether Shariah compliant AI strategies can make crypto investable without sacrificing ethics or risk management with its upcoming Bahrain-based crypto fund as digital assets edge into mainstream finance.
SNB Capital launched its market access services to enable foreign financial institutions to provide custody and trading access to their clients on the Saudi exchange – leveraging on the opening to all categories of foreign investors, effective the 1st February 2026.
Offerings and deals
With its first blind-pool regional private credit fund, Jadwa GCC Diversified Private Credit Fund, with a target size of up to SAR750 million (US$200 million), Jadwa Investment completed the first close at over SAR300 million (US$80 million) and already deployed capital into its first two investments, in partnership with regional fintech platforms Lendo and JeelPay.
Quilter Cheviot – a wealth manager with history tracing back over 250 years – recently launched a Shariah compliant discretionary portfolio service for UK-based clients, combining direct investment in equities and Sukuk.
Maybank Asset Management launched the Shariah compliant MAMG Growth and Income-I Fund, which feeds into the Schroder Maybank Growth and Income-I Fund –which in turn is a sub-fund of the Schroder International Opportunities Portfolio.
Vennre launched its first offering into Saudi Arabia with access to the Masar Makkah Fund – tapping a planned development at the forefront of AlMasjid AlHaram. Saudi investment firm Alpha Capital was also announced as a new manager on the Vennre platform.
Kuwait’s Gulf Capital Investment (InvestGB) inked a deal with CVC – which sees CVC launching a tailored version of its PE strategies for InvestGB clients.
Kamco Invest and Santander Alternative Investments announced a EUR300 million (US$349.35 million) partnership to offer Shariah compliant, income generating investment opportunities in the European real estate private credit space. Kamco also partnered Flexam Invest for its Ijarah project, Project Odyssey, a European asset-backed leasing vehicle that invests in tangible leased assets – with a focus on Ijarah leases across the logistics, land transportation, maritime and aviation sectors.
Arcapita Group Holdings forged a joint venture with Cloud Capital to acquire a 21MW data center located in Minneapolis, Minnesota, with plans to expand its capacity to 31MW. The data center is leased to a provider of sovereign AI and cloud solutions.
BlueFive Capital, alongside other strategic investors and family offices, led a US$230 million seed raise into Mal, the AI-native Islamic digital bank founded by UAE fintech Botim’s ex-CEO Abdallah Abu-Sheikh. Mal lays claim to be the world’s first AI-native Islamic financial platform – it is aiming to launch later in 2026.
Significant developments
Qatar Financial Centre, Dubai International Financial Centre and Abu Dhabi Global Market formally mutually recognized each other’s data protection frameworks – adding each jurisdiction to the others’ adequacy lists – marking a key step toward regional regulatory harmonization.
Indonesia’s Financial Services Authority (OJK) issued ‘Regulation Number 31 of 2025’ updating governance requirements for stock exchanges, clearing and guarantee institutions as well as depository and settlement institutions.
The Dubai Financial Services Authority implemented major updates to its Crypto Token Regulatory Framework in the Dubai International Financial Centre with a revised framework that shifts suitability assessments from the regulator to firms.
HSBC launched its new UAE asset management business and announced the registration of 10 new onshore investment funds with the Securities & Commodities Authority of the UAE – becoming one of the first global asset managers to establish and register an onshore fund range in the Emirates.
The AAOIFI released a draft English translation of its Shariah standards covering Standards 1 to 61, seeking comments by the 30th June 2026.
The Bursa Malaysia Quality 50 Shariah Index (BMQ-S) is Bursa Malaysia’s first in-house index based on financial performance – tracking 50 listed companies with strong financials that are recognized as Shariah compliant. Boursa Kuwait completed its 2026 review of listed companies, resulting in changes to the Main 50 index that include several firms active in Islamic finance, Takaful and Shariah-aligned investment and real estate segments.
Mansoor Al-Khater was appointed CEO of Qatar Financial Centre Authority, effective the 11th January 2026, succeeding Yousuf Mohamed Al-Jaida.
