Fortress US – the frontier of western finance that has proved a tough nut for Shariah practitioners to crack – is slowly yielding in the form of a PE market, which could open a substantial window for Islamic investments.
Historically, Shariah funds have expanded ever so slowly across North America from their initial concentration in Canada. But current shifts in the PE landscape offer them enhanced opportunities to penetrate the US financial system, says Princeton University portfolio director Amir Memon.
Griffin Private Equity (Dubai), having deployed close to US$500 million across six projects since 2023 as an exclusive club for affluent investors, is seeking to create a multiplier impact on target communities. The fund engages sophisticated investors with a minimum entry of US$250,000 to cultivate a green ecosystem encompassing frontier technology, AI, health infrastructure and real estate throughout Asia and the Middle East that integrates Shariah finance with Buddhist ethical investing.
Beyond its historic status as the first-ever Sukuk listed on the Colombo Stock Exchange, the Shariah compliant capital instrument from renewable energy firm Vidullanka marked significant advancements for Sri Lanka’s domestic financial industry – fully subscribed within hours of its debut.
Fintech
Digital platform Manzil Invest USA has launched Shariah compliant investment solutions specifically tailored for Muslim Americans, accessible via apps. The offering follows the Toronto-based fintech’s acquisition of US peer Aghaz Investments in November 2024, thereby obtaining Aghaz’s license with the US Securities and Exchange Commission as a registered investment adviser.
Qatar-based fintech company PayLater, which offers Shariah compliant solutions, has received an investment from LuLu Alternative Investments which has made an initial foray into Doha’s financial sector.
Zen Tech signed a non-binding letter of intent on July 3rd, 2025 to acquire a 30% stake in Souqa Fintech, a Shariah compliant payment services provider, through a new share issuance. The pact initiates negotiations towards a formal agreement, pending due diligence, regulatory and shareholder approvals as well as final terms with no immediate legal obligations.
Tali Ventures, the corporate venture capital arm of stc group, has led a funding round for Tarmeez Capital, a Saudi fintech company specializing in Sukuk and debt instruments. This investment aligns with stc group’s strategy to support high-growth digital platforms that enhance Saudi Arabia’s financial ecosystem, transitioning Tarmeez from a bootstrapped company to one backed by a national investor.
Alpaca, a US-based self-clearing broker-dealer, and ZAD, a Kuwait-based digital investment platform, have partnered to offer global investors access to Shariah compliant US stocks and ETFs.
Fund growth, M&A and profit
Q1 2025 experienced a significant decline in new Islamic equity fund launches, as tracked by the IFN Investor Funds Database. This slowdown, along with the underperformance of global Islamic equity funds (recording an average three-month return of -2.91% and a 4.31% fall in total AuM to US$55.12 billion), was influenced by uncertainties surrounding the Trump administration and US stock market volatility.
The UK saw the AuM of Sukuk funds quadruple to US$371.72 million in Q1 2025 from US$86.29 million in Q4 2024, despite the number of funds remaining at 16. This substantial growth was driven by strong inflows and solid performance across various Sukuk strategies in different currencies.
Aditum Group’s total AuM has surpassed US$9 billion, highlighting its rapid growth as an asset manager in the region. Of this total, US$8.8 billion originates from Aditum Investment Management, with the group now having 19 approved funds amid plans to add up to five more.
The Cur8 Capital USD Income Fund has reopened for investors until July 21st, 2025, providing access to a portfolio of Shariah compliant, asset-backed opportunities. The fund focuses on delivering stable returns through investments in working capital, trade finance, leasing and secured debt and will reopen again in September 2025.
Abu Dhabi sovereign wealth fund Mubadala is reportedly in discussions to acquire additional shares in digital bank and payments group Revolut in a US$100 million deal. Mubadala already holds a small stake in Revolut, which currently serves approximately 50 million customers worldwide.
Bank Syariah Indonesia has launched the Islamic Endowment Fund, an initiative aimed at enhancing the role of cash Waqf in developing the country’s Islamic financial ecosystem. The fund, inaugurated with cooperation agreements with three partners, will be professionally managed to support sectors such as education, healthcare and SMEs.
ASB Capital, an asset management firm with US$5.2 billion in AuM, has launched the ASB MENA Equity Fund in partnership with Amwal Capital Partners. This Shariah compliant, actively managed fund is open to institutional and individual investors, investing in publicly listed equities across MENA markets with sectoral exposure in financials, industrials, consumer and healthcare.
SAB Invest has introduced the SAB Invest MENA Private Credit Strategy, a Shariah compliant, open-ended private credit fund aiming to raise SAR1 billion (US$267 million) within the next six to 12 months. The fund plans to invest in unlisted and listed Sukuk, venture debt for tech-enabled firms, structured corporate debt and infrastructure financing across Saudi Arabia and the GCC.
Oman Investment Authority (OIA) reported a net profit of US$4.12 billion in 2024, managing US$53 billion in assets and ranking among the top 10 sovereign wealth funds globally. OIA employs a mixed conventional and Shariah investment strategy, with 63% of its portfolio domestically invested and the remainder spread across over 50 countries.
Licensing, regulatory drills
Pakistan President Asif Ali Zardari has implemented the Virtual Assets Ordinance 2025, establishing the Pakistan Virtual Asset Regulatory Authority as an autonomous federal body to regulate cryptocurrencies and virtual assets. This 120-day ordinance mandates licensing for all virtual asset service providers includes a regulatory sandbox and appellate tribunal, requiring a Shariah advisory committee to provide guidance on Islamic finance compliance for crypto products.
Osool & Bakheet Investment Company has obtained a license from the Saudi Capital Market Authority (CMA) to conduct arranging activities in the securities business.
The CMA also announced that Sukuk Capital, a digital investment platform, has fulfilled all requirements to commence its licensed arranging activity in the securities business. The license was granted under the Capital Market Law and its Implementing Regulations.
Gemilang Hartadinata Abadi (GHA), through its subsidiaries, has entered a tripartite cooperation with Bank Syariah Indonesia (BSI) and Galeri Cendrawasih Dana Abadi (GCDA). This agreement involves GHA acting as the bullion provider, BSI as the buyer and GCDA as the vaulting service provider for BSI’s gold bullions and custody services.
The Malaysia Gold Association has established a Shariah advisory board to provide guidance on Shariah compliance to stakeholders within the precious metals sector.
The Philippine Stock Exchange released its updated quarterly list of Shariah compliant securities as of June 25th, 2025 that includes a total of 47 companies.
