Infrastructure and private credit luring Islamic investors as they move beyond public markets – BlackRock

BlackRock is seeing a growing push among Islamic investors for alternative assets, particularly in the private sphere.

“When speaking with clients across the region, private markets repeatedly come up as one key area of focus,” Keith Saldanha, BlackRock’s head of wealth and global product solutions for the Middle East and Africa, told IFN Investor. “However, we also see appetite for Shariah solutions with leading banks and their wealth segment – a key theme right now is converting savers to investors.”

The trend comes as investors seek opportunities beyond traditional deposits and public markets. BlackRock notes that alternatives AuM are expanding rapidly, with Preqin forecasting the industry to reach US$32 trillion by 2030, up from US$20 trillion in 2025.

Infrastructure and private credit are expected to lead that growth. According to BlackRock’s 2026 Private Markets Outlook, the two asset classes currently account for around 20% of private markets but could represent 30% by 2030.

The firm says this is creating new opportunities for Shariah-conscious investors, who are increasingly looking for access to private market strategies through Shariah-aligned or Shariah-screened structures.

BlackRock believes the Islamic investment space remains open to further innovation, particularly in helping investors build more diversified portfolios that combine both public and private market exposures.

Keith said the firm is pursuing two approaches. The first focuses on developing products from the ground up by assessing individual assets and transactions through a Shariah lens.

“We have recently developed a private equity capability that provides investors with access to institutional-quality, Shariah-aligned private equity deals through a Wakalah structure,” he shared.

The second approach involves working with regional partners to create Shariah compliant structures that can sit on top of existing non-Shariah funds, allowing investors to access a broader range of strategies while meeting Islamic investment requirements.

While implementation varies according to client needs, BlackRock is seeing interest across the private markets spectrum, including private credit, private equity, infrastructure and multi-alternative strategies.

For the asset manager, the growing demand reflects a broader evolution in Islamic wealth management. As investors seek greater diversification and long-term growth opportunities, private markets are increasingly becoming part of the conversation, creating fresh opportunities for Shariah compliant product development.