GLOBAL: Islamic ESG funds performed well in Europe in Q3 2025, underscoring this region’s growing role in the Shariah compliant sustainability segment amid softer sentiment across key Asian markets.
The Republic of Ireland – home to five funds – posted the strongest performance globally, with total AuM rising 13.71% to US$271.48 million from US$238.74 million. Luxembourg, with four funds, recorded a 7.96% increase to US$189.88 million, while Germany’s two funds grew 3.81% to US$62.7 million.
Overall, global Islamic ESG fund assets rose 1.42% in Q3 2025 to US$1.07 billion, with the IFN Investor Funds Database tracking 39 such funds – with most invested in equities and Sukuk.
While Asian domiciles had the bigger AuM volume, Malaysia – the largest Islamic ESG market with 24 funds – saw total values decline 5.65% to US$534.27 million, down from US$566.25 million in Q2 2025. Indonesia, which hosts four funds, posted the steepest fall globally, with total AuM dropping 14.03% to US$12.64 million.
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