GLOBAL: The intense development of residential and commercial properties in recent years within the UAE seems to have reached a tipping point – as deliveries of completed units this year have resulted in some lowering of rental incomes, with supply closer to meeting demand.
Tracking by the IFN Investor Funds Database showed the four Islamic real estate funds within UAE posted a 20.31% decline to US$5.57 billion over Q3 2025 – the steepest fall globally. Total AuM for these UAE funds earlier stood at US$6.98 billion at the end of Q2 2025.
Across the region, Saudi Arabia – the largest Islamic real estate funds market with 27 funds – posted a performance that was nearly flat, slipping 0.83% to US$8.14 billion in Q3 2025. Oman, with two funds, slipped 3.87% to US$374.53 million for the same period while Kuwait saw a 1.36% rise in total AuM to US$512.51 million across three funds.
Elsewhere, Malaysia’s nine funds recorded a 1.25% increase to US$7.64 billion and Turkiye, with eight funds, recorded one of the strongest gains globally – up 19.72% to US$571.31 million. Among smaller domiciles, total AuM in the Cayman Islands rose 4.69% to US$145.1 million, while Australia’s dipped 0.85% to US$73.14 million. Ireland, currently hosting one fund, posted a steep 28.47% decline, with AuM falling from US$12.73 million to US$9.11 million due to outflows and property revaluations. The single US public fund closed the quarter with a 6.91% increase to US$170.33 million.
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