The IFN Investor Funds Database is tracking a total of 2,550 public Islamic funds managed by 487 asset management firms around the globe, with a combined AuM of US$534.83 billion
For Europe-domiciled Islamic funds, a notable performance was seen in equities, which posted gains of 15.3% – growing from US$10.39 billion in Q1 2025 to US$11.98 billion at the end of Q2 2025 in total AuM. Europe’s real estate funds total AuM rose even higher percentage-wise, at 23.13%, from US$419.73 million to US$516.83 million.
At the other end of the spectrum, the Islamic funds in the Middle East experienced modest overall growth over the same period, with total AuM tracked by the IFN Investor Funds Database edging up by just 0.37% – from US$61.06 billion in Q1 2025 to US$61.28 billion in Q2 2025.
New offerings
Riyadh-headquartered Audi Capital is preparing to enter the global real estate space and is exploring opportunities in the art market, both part of a broader push to deepen its alternative investment capabilities targeting high-net-worth individuals (HNWIs).
EDC Fund Management is mobilizing plans for a Shariah compliant fund offering that will span the five key African markets of Nigeria, Ghana, Senegal, the Ivory Coast and Kenya.
RBC Brewin Dolphin soft-launched out of Ireland a bespoke portfolio management service to support wealth management needs of HNWIs.
Muamalat Invest launched a Shariah compliant private credit wholesale fund in Malaysia that offers access to non-traditional fixed income instruments – specifically Islamic investment notes issued by P2P-financing operators.
RHB Islamic Bank partnered with Universiti Malaysia Terengganu to launch Malaysia’s first Waqf to support turtle conservation efforts.
Alkhabeer Capital partnered AWRAAQ Digital to introduce a Block Trade Negotiation System aimed at improving how institutional and high-net-worth investors negotiate large trades in private digital rooms to minimize market impact and optimize execution.
Bright ecosystem
Sovereign funds remain strongly focused on the Shariah assets landscape, with the Turkiye Wealth Fund inking a US$600 million Murabahah financing deal to bring total funding raised through Islamic finance instruments surpassing US$1.8 billion.
Bahrain’s Mumtalakat Holding joined 25 prominent GCC and global investors to invest in BlueFive Capital – which manages over US$2.6 billion in assets from Manama, operating across key global centers including London, Abu Dhabi and Beijing.
Sukuk continues to be largely rated as investment grade with no defaults as of H1 2025. Total Fitch-rated Sukuk surpassed US$210 billion, up 16% year-on-year, with over 90% denominated in US dollars.
AAOIFI is still discussing the proposed withdrawal of FAS 26 ‘Investment in Real Estate’, which provides transitional guidance on accounting treatment for property investments.
The economic committee of Iran’s parliament seeks to remove four zeros from the national currency rial and restoring an old currency subdivision named qeran – where one new rial would be equal to 100 qeran. The proposal aligns with a government bill approved in 2016 – it is not yet clear when this proposal would be put to the vote by the parliament.
Significant deals
The PE team at Kamco Invest closed the acquisition of a stake in Foodics, a leading cloud-based technology and payments platform for restaurants in the MENA region. Among the investors in Foodics in a recent US$170 million fundraising round are Prosus, Sanabil Investments and Sequoia Capital India. Existing investors include STV, Endeavor Catalyst, Vision Ventures, Raed Ventures, Riyadh Taqnia Fund and Faith Capital.
RIFD, a Shariah compliant platform for SME receivables securitization in Saudi Arabia, secured a strategic investment from Antler, a global early-stage venture capital firm.
Fintech developments
Islamic crypto start-up, inshAllah, partnered with digital asset platform Kiln to offer Shariah compliant ethereum staking.
Al Meezan Investment’s funds were added to the Behtari App, providing an accessible platform for such Halal investment opportunities in Pakistan.
