A flurry of regulatory announcements and actions to raise the investing game in the Islamic world coincided last week with multiple Shariah product launches and other expansion plans from Asia to the Gulf and Africa.
Pakistan was front and center of the activity as its Securities and Exchange Commission introduced regulatory amendments to enhance Shariah compliance for mutual and pensions funds, as part of the South Asian nation’s plan to be Riba-free by 2028. The new rules stipulated, among others, that collective investment schemes without a Shariah compliance certificate must obtain one by the 30th September 2025. The regulator has however made it easier for CIS to secure a Fatwa.
As the Republic pursues full Islamization of its financial system, a development signaling Shariah compliance was moving slower than thought in Pakistan was the revelation that Islamic banking deposits target set by the central bank – to surpass 50% by January 2025 – had not been met, according to official documents.
On the brighter side, Pakistan’s Lucky Investment Management — on a roll after raising the most money ever in the country for a mutual fund IPO — revealed to IFN Investor that it could launch more Islamic products in the coming days. According to CEO Mohammad Shoaib, the company is shaping itself into an adviser and asset manager for other financial service providers in Pakistan.
Elsewhere in Asia, gold and Waqf dominate
Precious metals were in play on the product front as Malaysia’s Bank Muamalat launched MiGOLD, a Shariah compliant gold fund investing in exchange-traded funds and CIS leveraging on the storage and liquidity management of gold.
The Maldives, which is restructuring its economy, said BML Islamic will provide a financing facility worth MVR350 million (US$22.66 million) to support a series of initiatives announced by the Maldives Ministry of Islamic Affairs for the development of the country’s Islamic Waqf fund.
In the 10-member ASEAN, regional finance ministers and central bank governors reaffirmed their commitment to advancing Islamic finance and mobilizing Shariah-friendly capital for infrastructure development, along with green financing initiatives.
Multiple listings, product plans in Africa
We learned that Nigeria’s Marble Capital, concerned with the weakening naira, is planning a Shariah compliant US dollar-denominated fund to fulfil demand for investment opportunities priced in something stabler than some African currencies.
In Ethiopia, at least 50 company listings have been planned in the next five years, along with a platform for the listing and trading of government and corporate Sukuk, as the Ethiopian Securities Exchange signed an MoU with Financial Sector Deepening (FSD) Africa and FSD Ethiopia.
Insurance companies and pension funds joined in the action in Egypt, where Arab African Investment Holding opened subscription for its Cumulative Return “Kenz” Multi-Issuance Fund, with the Kenz – Shariah portion of the fund tracking the EGX33 Shariah Index with a minimum correlation of 80%. The product will be offered in two tranches for individual investors, insurance companies and pension funds.
Funding, merger activity in the Gulf
Refinancing was key for the move by Saudi Arabia’s Derayah REIT Fund to secure a five-year Islamic financing facility worth SAR750 million (US$200 million) to refinance its current obligations standing at SAR603 million (US$160.8 million).
Bahrain’s GFH Financial Group and Ithmaar Holding offset some of the positivity in GCC Shariah scene when they mutually agreed to terminate discussions of GFH potentially acquiring Ithmaar’s financing and investment portfolios.
Enhancement of Shariah compliance was also a feature in Kuwait, with Marwa Al-Juaidan, the acting undersecretary for the Ministry of Commerce and Industry, affirming the ministry’s commitment to increase oversight on Islamic companies.
These developments come on the back of Saudi Arabia seeing 46 new Shariah compliant funds launched over 2024, adding a total asset value of US$5.68 billion at the end of the year. The Sedco Capital IPO Fund – launched on the 26th August 2024 – stood out as the top performer, recording a three-month return of 7.65% in 2024.
Moves
Muzzafar Ahmed Mirza has become commissioner at the Securities and Exchange Commission of Pakistan (SECP) for a period of three years. A former chief prosecutor and executive director of the SECP, Muzzafar joined the agency in 2012.
Shadi Ahmed Zahran resigned as senior deputy group CEO-finance of Kuwait Finance House for personal reasons.
Mohamed Sultan Al Habsi has taken up the appointment of acting CEO at Oman Investment Bank, the country’s first dedicated corporate investment bank.
Fund management
As of 21st April 2025, the IFN Investor Funds Database reported that the 2,528 public Islamic funds managed by 479 asset management firms collectively held US$516.31 billion in assets under management (AuM).
Looking back at the first quarter of 2025, commodities funds across Europe delivered strong performances – seeing total AuM grow from US$10.7 billion in Q4 2024 to US$15.01 billion in Q1 2025.
