In our continuous worldwide coverage to be the leading resource on Islamic funds, the IFN Investor Funds Database recorded 2,574 public Islamic funds managed by 493 asset management firms, with a combined total of US$675.19 billion in AuM as at the 20th October 2025.
With Egypt’s Islamic asset management industry tracked by this database seeing a 26.34% increase in total AuM to US$71.66 million for H1 2025, up from US$56.72 million in H2 2024, this bullish outlook is expected to continue for the rest of the year as the IMF has revised upward its forecast for Egypt’s real GDP growth in fiscal year 2025/2026.
Another exclusive insight from this database is that Islamic money market funds worldwide recorded strong growth in H1 2025, with total AuM climbing 12.55% to US$37.6 billion, up from US$33.4 billion at the end of 2024. The increase reflects renewed investor appetite for short-term Shariah compliant instruments amid continued global economic uncertainties.
Industry snapshots
Surging above US$4,200 per ounce on the 15th October 2025, the Shariah commodities fund sector looks set for more dynamism in the coming year as gold doubles as a choice asset.
A surge in prices for saffron, also called ‘red gold’, have boosted interest in the two Shariah compliant funds within Iran – the first in the global capital market.
Maldivian banking professionals say the government is unlikely to face trouble repaying its maturing Sukuk and bonds – as arrangements have begun to refinance US$200-300 million in maturing Sukuk including the US$500 million Sukuk due in April 2026.
Hong Kong is positioning itself to become a regional Islamic finance hub, supported by its Sukuk framework and prior sovereign issuances exceeding US$3 billion, as this city aspires to further link Middle Eastern investors with opportunities in China and the Greater Bay Area.
Bank Negara Malaysia announced that the Malaysian Islamic Overnight Rate (MYOR-i) will become the mandatory reference rate for all Islamic financial products effective the 1st July 2027.
Total NAV for Bahrain’s Shariah compliant collective investment undertakings increased 13.69% from US$1.81 billion in Q2 2024 to US$2.6 billion in Q2 2025, the Central Bank of Bahrain reported.
Deals and offerings
The lure of quantitative analysis investment strategies has continued to grow among Shariah compliant funds, including a Mauritius-domiciled offering from TIW Capital.
Investment group IHC, which handles both conventional and Shariah investments since its 1999 establishment, is investing US$1 billion into India’s listed firm Sammaan Capital. IHC is also merging its three units – 2PointZero, Multiply Group and Ghitha Holding – into 2PointZero Group, valued at about AED120 billion (US$32.68 billion) which will stay listed on the Abu Dhabi Securities Exchange.
Rasmala Investment recorded an eighth time return to participating shareholders with its exit from the Poseidon Fund – as part of a deal involving the fund’s maritime transport services-based Gulf Navigation Holding buying Brooge Energy for AED3.2 billion (US$871 million).
Digital assets exchange ATME, licensed by the Central Bank of Bahrain, partnered with Shariyah Review Bureau (SRB) to facilitate capital-raising through real-world asset tokenization. While SRB was acquired by Saudi-based Al Marjea, both entities will maintain their regulatory independence while aligning strategic operations between Riyadh and Bahrain.
Expanding opportunities
What began as a litigation contingency contracting mechanism by US law firms has mushroomed into a sophisticated, global investment product – attracting deep-pocketed institutions drawn by the high-risk, high-reward lure, with Burford Capital pioneering a shift in the Middle East toward fostering this opportunity as a new Shariah compliant asset class.
With real estate opportunities shrinking in established markets, Rasmala Investment Bank is ready to explore beyond the GCC for other emerging prospects.
Bahrain’s Esterad Investment launched Esterad Capital in Dubai to spearhead its regional expansion strategy that will focus on the origination and management of investment opportunities across multiple asset classes – including PE, real estate and other strategic investments that will be both conventional and Shariah compliant.
Malaysia’s Ihsan International Waqf Labuan Foundation aims to reposition Waqf from a charitable structure into a strategic asset management framework for socioeconomic empowerment and global wealth stewardship to drive sustainable development and inclusive growth.
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] launched Dana Iklim+, Malaysia’s first climate-focused investment fund – which will be managed as a Shariah compliant infrastructure vehicle.
Sidra Capital of Saudi Arabia has stumbled upon an interesting development with its latest money market fund launched in December 2024. The Saudi Capital Market Authority approved the public offering of the SEDCO Capital Global Sukuk Public Feeder Fund.
Significant matters
Malaysia’s PMB Investment announced income distribution for its PMB Dana Bestari – invested in Shariah compliant equities and equity-related securities – of RM3.21 million (US$759,500) for the year ended the 30th September 2025, amounting to a 3.01% yield.
Saudi Arabia’s Hassana Investment promoted Hani Al-Jehani to be its sole chief investment officer – rising up the ranks from when he joined as a senior analyst in January 2014 to manage, then head the Alternative Investments Unit.
