Islamic fixed income, Sukuk funds total surpass US$22 billion in Q2 2025

GLOBAL: The total value of Islamic fixed income and Sukuk funds tracked by the IFN Investor Funds Database reached US$22.03 billion as at the 30^th June 2025 – marking a 10.87% growth over H1 2025. This worldwide total AuM was US$20.44 billion at the end of 2024 and grew to US$21.98 billion by the end of Q1 2025. This growth trajectory was also boosted by the launch of six new funds, collectively adding US$41.34 million in assets. 

Performance-wise, Malaysia remained the dominant market with US$6.25 billion across 98 funds, though AuM fell 2.25% over the second quarter. This corresponds to a drop in local corporate bond and Sukuk issuances reported by the Bond and Sukuk Information Exchange, supervised by the Securities Commission Malaysia.

Being the second-largest market by value, Saudi Arabia’s AuM also dropped by 14.03% - to US$4.89 billion held in 35 funds. The third largest market, Luxembourg, contracted 6.16% - to US$2.62 billion covering 19 funds, pointing to an uneven sentiment in some of the more established markets.

On the positive side, Pakistan and Indonesia stood out with double-digit growth at 16.12% and 14.39% respectively. Pakistan’s total AuM at the 30^th June 2025 stood at US$1.27 billion in 46 funds while Indonesia’s total was US$1.17 billion covering 64 funds.