The IFN Investor Funds Database, the leading intelligence platform on Islamic public fund offerings, recorded 2,763 funds managed by 517 asset management firms, with a combined total AuM of US$443.83 billion as at the 20th July 2026.
The Iran war continues to frame risk discussions, affecting euro-dollar dynamics and prompting analysis that the euro may be approaching a technical breakout from its range of the past year. Over the last week, markets saw a notable rotation away from AI‑linked chip stocks, rising yields and rate expectations remaining in focus and fresh stress signals in private credit.
Islamic ESG funds were dealt a minor blow as they experienced a 2.97% quarter-on-quarter decline in AuM in Q1 2026 to US$1.62 billion. On a 12-month horizon, however, the 57 public Shariah ESG funds tracked still managed to deliver a 11.32% AuM growth.
Shariah investors remain resilient, and the product pipeline remains positive. We learned that Channel Capital, which concluded its first close for its Islamic private credit fund, is expecting its next two closes to end with US$200 million over the next 15 months on the back of strong appetite.
This high demand narrative has been bolstered by the universe of investable Islamic instruments expanding. The industry welcomed a new fund and an additional offering of a Shariah fund in Nigeria, new products in Bangladesh while Pakistan’s Central Directorate of National Savings mobilized PKR61 billion (US$218.53 million) in Shariah compliant investments during the fiscal year ended the 30th June 2026, exceeding its annual target of PKR55 billion (US$197.02 million).
The Islamic investment community also continues to grow. Saudi Real estate investment platform Jozo secured Shariah approval for its fractional real estate platform while Pakistan’s BMA Capital Management rolled out an Islamic brokerage window.
In the digital Islamic investment space – it is a mixed bag.
North American fintech start-ups are expanding their international investment capabilities. New York-founded Wahed has introduced a fractional real estate investment platform through its Malaysian arm, allowing Malaysian retail investors to invest in residential properties from as little as RM500 (US$122.46). Meanwhile Toronto-based Manzil has unveiled a self-directed Halal stock trading through its US arm.
However, crypto investments in Pakistan may find themselves at the cusp of major Shariah obstacles as renowned scholar Mufti Taqi Usmani declared through a Fatwa signed by another six scholars, that buying goods with cryptocurrency is impermissible. This edict threatens to undo year-long government efforts to position Pakistan as a crypto-friendly destination.
Just as the Pakistan regulator is wrangling with this challenge, Dubai on the other hand is making its regulatory framework more robust. It is seeking feedback on amendments to its definition of investment tokens that would accommodate hybrid on-chain and off-chain digital assets, citing tokenized Sukuk as an example of structures that could otherwise fall outside the existing framework.
