UAE: The Islamic fund industry within the UAE, as tracked by the IFN Investor Funds Database, was supported in the second quarter of 2025 by strong momentum in real estate funds – which surged 24.92% from US$911.57 million in Q1 2025 to US$1.14 billion in Q2 2025. The segment’s sharp rise was reinforced by government initiatives in property ownership and homebuyer support, positioning real estate as a key catalyst of Islamic fund growth for the quarter.
Equities recorded a moderate gain of 2.5%, increasing from US$278.37 million to US$285.33 million, reflecting steady investor appetite for Shariah compliant stock exposure. Mixed assets also edged up by 0.9%, rising from US$44.3 million to US$44.7 million.
Money market and fixed income instruments, however, remained flat at US$54.17 million and US$201.48 million, respectively. By contrast, Sukuk funds contracted sharply, declining 14.1% from US$241.95 million to US$207.83 million, weighing on overall industry performance.
The divergence across asset classes highlights shifting investor sentiment in the UAE, with growth anchored in real estate and equities.
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