The Islamic investment space continues to buzz with renewed potential, driven by a high-value asset like diamonds.
This can be seen by a consortium of Islamic banks, which will be exploring how diamond units – standardized as coins and bars, akin to precious metals of gold and silver – can be a high-value commodity to back Shariah compliant transactions.
Confidence in Islamic assets is reflected by how despite Nigerian investor sensitivity to returns often prioritize higher returns over other factors, Cordros Asset Management is bullish that demand for Shariah compliant investments will increase with more options to be launched in the next five to 10 years.
This level of confidence is further boosted by the February 2025 opening of Apex Group’s regional headquarters in Riyadh, which caps an effort that began in May 2024 and presented unexpected Shariah opportunities for this group.
Meanwhile the latest MARC Ratings forecasts that the Malaysian operations of Kuwait Finance House should completely be wound down by Q1 2026.
Offerings
Aiming to expand mass reach, the Indonesian government is set to offer retail Sukuk to individual investors through its online platform e-SBN.
Online developments include funds platform Tillit adding two more Shariah compliant offerings of the HSBC Islamic Global Equity index fund and the Saturna Al-Kawthar Global Focused Equity ETF. Arbah Capital further inked a deal to offer its Shariah compliant funds on the new digital investment platform Nama.fund – which is currently in the beta stage.
In upcoming opportunities, the Saudi Capital Market Authority approved the public offering of the Al-Watani Sukuk Fund by Watani Wealth Management. Shariah compliant debt-based crowdfunding platform Ethis Group is awaiting final greenlight from the Turkish Capital Markets Authority to be the first such investment outfit in this nation.
Deals
Sidra Capital completed the sale of its UK property to the Republic of Italy. Acquired in 2021, the Grade II-listed freehold underwent a two-year refurbishment and was branded as The Palace Gate. It stands as the closest commercial office space to Buckingham Palace.
Rebranding
Following the takeover by Pakistan manufacturing conglomerate Yunus Brothers Holdings, Interloop Asset Management completed its renaming as Lucky Investments – which will be operating as a Shariah compliant firm.
Standard Life Aberdeen is reverting to its earlier branding of Aberdeen group, CEO Jason Windsor revealed in the firm’s 2024 annual report. This asset management firm, which has several Shariah compliant offerings, rebranded to ‘abrdn’ in 2021 under former CEO Stephen Bird. Jason replaced Stephen in May 2024 as interim CEO and was confirmed in this post September 2024.
