UAE: The Islamic fund market within the UAE posted a mixed performance in Q3 2025, with strong gains in equities and money market funds – but a sharp contraction in real estate assets, according to IFN Investor Funds Database.
In line with the positive overall global equity market performances, UAE’s Islamic equity funds recorded the strongest growth during the quarter, with total AuM rising 33.84% from US$248.03 million in Q2 2025 to US$331.96 million in the quarter under review. Money market funds also saw inflows, expanding 18.99% to US$64.48 million.
In contrast, real estate funds, the largest asset class in the UAE Islamic fund market, declined sharply by 20.31%, with AuM falling to US$5.57 billion. This trend was mainly skewed by the performance of the Dubai Residential REIT since its late-May 2025 IPO – surging in value when this counter was included in BlackRock’s iShares MSCI UAE ETF, then returning to its lower technical valuation.
Fixed income and Sukuk funds remained broadly stable, posting marginal increases of 0.18% (US$185.36 million) and 0.26% (US$230.82 million) respectively. Mixed-asset funds also edged lower, slipping 2.68% to US$43.5 million.
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