As 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$675.1 billion in AuM as at the 27th October 2025.
Notably, insights from this exclusive database showed that there were fewer Islamic fund launches in the first half of 2025 – with only 39 new Shariah funds making their debut. This figure marked an almost 50% decline from the 77 new fund launches in H2 2024.
The slowdown was most pronounced in Islamic equities, which fell from 38 fund launches to 11, as investors pulled back from risk-heavy strategies amid global economic uncertainty earlier in the year.
Emerging investment trends
Iran offers a compelling model for Shariah compliant capital offerings in the heavy industry manufacturing sector with its six dedicated automotive-focused investment funds.
The UK office sector, which has transactionally struggled over the last three years, is seeing a huge resurgence of interest from Shariah compliant investors.
New offerings and deals
Trading of six new commodity deposit certificates – for copper cathode, zinc ingot, rebar, iron ore pellets, automobiles and bitumen – have begun on the Iran Mercantile Exchange.
Pak-Qatar Family Takaful is planning to launch its IPO next month, seeking to raise approximately US$3.9 million.
Albaraka Portfolio Management, a subsidiary of Turkiye’s first participation bank, partnered with Bahrain asset management firm SICO to launch a fund that will invest primarily in Sukuk and capital market instruments issued in Turkiye.
UAE investment firm IHC announced the acquisition of a majority stake in Pakistan’s state-owned First Women Bank under a privatization exercise – seen as a first under a G2G framework.
UAE is developing the world’s largest renewable energy project integrating solar power and battery storage while Malaysia’s Gamuda Land is undertaking its first UK fully self-developed and managed new 321-bed purpose-built student accommodation.
Regulatory action
The Capital Market Authority (CMA) of Saudi Arabia approved the registration of eight actively managed global funds by Franklin Templeton for qualified investors in the Kingdom – with four being Shariah compliant, span single-country, regional and global strategies.
Tradeweb Markets completed the commencements of business requirements after the CMA selected it to build and run the Kingdom’s first regulated electronic bond market infrastructure in a competitive tender process in Q1 2024. Tradeweb Markets then announced that its platform has facilitated its inaugural transaction between BlackRock and BNP Paribas, with a subsequent trade between BlackRock and Goldman Sachs.
Audi Capital is using azakaw’s client onboarding platform to better align with CMA regulations and supervisory expectations – enabling Audi Capital’s website to conduct automated screening and provide continuous monitoring that strengthens compliance and risk management.
Significant developments
The Bangladesh Securities and Exchange Commission imposed lifetime bans on Reaz Islam, CEO and chief investment officer of LR Global Bangladesh Asset Management, and its former chairman, Professor Shibli Rubayat-Ul-Islam. The penalty was imposed after the firm illegally invested a total of BDT686.4 million (US$5.62 million) in loss-making Padma Printers and Color, later renamed Quest BDC.
The Malaysian Hajj pilgrim fund reappointed Abdul Rashid Hussain as the chairman for another two years while Shariah compliant asset management firm Ajyad Capital appointed Farid Bassyouni as head of investments and Regis Burger was appointed CEO of Julius Baer (Middle East), in addition to his current role as head of Middle East and Africa for the group.
