Innovation in the Muslim world can also mean bringing the old to the new – like Shariah investments in the ever-evolving business of film – while additionally fostering creative offerings in the digital landscape.
This is now taking place in Indonesia with a Shariah-funded movie scheduled to open for public viewing from the 21st August 2025. Titled ‘The Sun Gazer: Cinta Dari Langit’, the film is based on a novel by local Islamic finance doyen Muhammad Gunawan Yasni.
Fintech also stayed at the forefront of Islamic product rollout and market news last week. US-based Zoya, which is helping Muslims to align their faith with their finances, said it has created software to extend support to over 1,000 global indices with full constituent data. This feature will allow its users to create a custom basket, tracking only the Shariah compliant subset and enable them to invest in one click, like an index fund.
In another tech-infused Shariah development, UAE digital gold investment platform O Gold partnered with Mawarid Finance, a financial institution in the Emirates, to develop and launch the region’s first Islamic gold-backed prepaid card. O Gold Founder Bandar Alothman said the company’s objective is to offer customers ethical financial products that combine the timeless value of gold with practical modern use.
Market expansion, product rollout
SAB Invest, a wholly-owned investment arm of Saudi Awwal Bank, has launched an exchange-traded fund (ETF) constructed upon a quantitative investment methodology adapted from an HSBC model. This fund employs rules-based modeling to identify market inefficiencies and establishes a diversified, Shariah compliant portfolio grounded in value and momentum factors. The SAB Invest Saudi Quant ETF is publicly listed and available for trading on the Tadawul Main Market.
Jeddah-based Sidra Capital intends to broaden its Islamic finance activities within the Asia Pacific region, focusing on bespoke lending and prospective property acquisitions while growing its private financing ventures that have already secured the first deal in Australia.
Hassana Investment Company and Franklin Templeton have formalized an MoU valued at US$150 million to explore private credit opportunities within Saudi Arabia. The agreement aims to channel institutional capital into the Kingdom’s private sector and broaden the spectrum of alternative financing avenues for high-growth enterprises.
Amwal Capital Partners, an autonomous alternative investment firm with operational hubs in Dubai and Riyadh, has raised an initial capital of US$150 million for its ACP Shariah Financing Fund. Designed to provide capital to SMEs across the Gulf – with a particular emphasis on asset-backed financing within technology-driven platforms – the fund aims to execute 12 to 15 direct lending transactions over a five-year horizon, primarily within Saudi Arabia and the UAE.
Real estate, REITs
APEX Capital Group, a private real estate investment enterprise based in the US, has introduced the Silk Road Properties Income Fund, a US$10 million Shariah compliant private real estate fund targeting qualified investors. With a focus on Southern New Jersey, the fund will amass a collection of high-potential rental properties including single-family residences and multi-unit apartment buildings, situated in areas identified for strong cash generation and long-term value appreciation.
Spanish-Mexican private banking institution Maus Coex Capital has announced the expansion of its bespoke REIT fund offerings for international investors and asset managers, featuring capital preservation strategies in both developed and emerging economies. Among its recently finalized projects is a US$100 million Shariah compliant REIT for a sovereign wealth entity in the Middle East. This private REIT is focused on environmentally certified multi-family residential units in Lisbon and Barcelona.
Fractional property investment platform, Shojin, structured and funded its first Shariah compliant real estate investment for a mezzanine funding package for a 250-unit residential development in Greater Manchester, UK.
Gatehouse Bank partnered with fintech Algbra Labs to offer new digital accounts for overseas residents looking to invest in UK property.
Market development, regulations
The advancement potential of India’s Islamic equity investment sector faces limitations stemming from a combination of regulatory obstacles, widespread prudence and a deficit in understanding, M S Shabbir, founder and managing director of SenSage Financial Services, told IFN Investor. Numerous investors in India, including those who might otherwise favor Shariah compliant investments, lack adequate knowledge on Shariah concepts, leading to frequent misconceptions, Shabbir said.
In the UAE, the Sharjah Real Estate Registration Department is implementing a direct digital connection that will enable Emirates Islamic bank to execute inquiries, verifications and adherence procedures – to bolster the effectiveness of property registration and funding processes within the Emirate of Sharjah.
AlAhli Financial announced the finalization of the amalgamation of the AlAhli Gulf Pioneer Fund into the AlAhli Gulf Equity Trading Fund.
Assets under management
In Asia Pacific, Islamic money market funds displayed robustness in the initial quarter of 2025, notwithstanding persistent economic challenges triggered by the US’ announcement of extensive tariffs. During this period, total assets under management (AuM) tracked by the IFN Investor Funds Database registered a slight contraction of 1.69%, decreasing from US$13.64 billion to US$13.41 billion. Nevertheless, these Islamic funds achieved a respectable average three-month return of 3.3% during the quarter. Among key Southeast Asian markets, Malaysia recorded a modest three-month return of 0.9%, coupled with a quarter-on-quarter increase in AuM from US$8.61 billion to US$8.75 billion. Indonesia and Sri Lanka followed with returns of 1.01% and 1.66%, respectively, alongside corresponding AuM shifts of +5.03% and –1.04%.
GCC Islamic money market funds, meanwhile, experienced a substantial expansion of 23.95% between the fourth quarter of 2024 and the first quarter of 2025, as indicated by the IFN Investor Funds Database. Total managed assets increased to US$21.07 billion from US$17 billion, supported by the performance of 47 investment vehicles and the introduction of two new funds.
Moves
Esterad Investment Company announced the resignation of Hisham Alrayes from his position as the chairman of the company’s board, effective the 10th May 2025. Nabeel Nooruddin has been appointed the new chairman of the board.
DLA Piper Partner Dr Ehab Elsonbaty joined the International Advisory Council of Sovereign Investors – bringing his experience in sovereign wealth funds, government advice as well as projects and affairs, corporate matters, corporate governance, sustainability, ESG and Shariah compliant legal services.
