Malaysia’s Shariah commodity funds surge nearly 200% in 2025 amid gold rally

Malaysia’s Shariah commodities sector tripled its AuM in 2025, as the four funds in the space combined to create a 198% surge in year-on-year (y-o-y) value to US$250 million. The trajectory coincided with a massive rally in gold, as futures of the precious metal peaked at US$4,584 an ounce in December 2025.

Malaysia aside, Asia Pacific’s Islamic commodity funds expanded by an average of 59% in Q4 2025 as futures of gold itself rallied 12% for the quarter.

In fund performance specifically, Malaysia’s TradePlus Shariah Gold Tracker ETF was ranked the third best global commodities fund in Q4 2025. A unit of AHAM Capital Asset Management, which has an AuM of US$6.2 billion, TradePlus delivered a three-month return of almost 13%, as institutional demand for gold integrated with Shariah mandates and ESG principles.

Beyond commodities, other significant performers and large-capitalized asset classes in the Malaysian Shariah space in 2025 were cryptocurrency, fixed income, Sukuk, money market and equity funds.

Cryptocurrency was the second-fastest growing asset class after commodities, despite a volatile year for digital assets. AuM in the crypto sector, consisting of three funds, rose 149% to US$45.3 million y-o-y.

While fixed income instruments saw valuations jump by around 95%, actual AuM in the sector, represented by 29 funds, dwarfed both commodities and cryptos at over US$3.3 billion.

Similarly, the Sukuk sector, with 86 funds, grew by around 43% to reach US$5.9 billion; the money market sector, with 62 funds, expanded by 17.5% to US$10.6 billion and the equities sector, with 257 funds, grew by 2.6% to US$15.6 billion.

In total, the Malaysian Shariah sector, with 598 funds, experienced an increase of 17% in AuM in 2025 to US$39.3 billion.