The IFN Investor Funds Database, the leading intelligence platform on Islamic public fund offerings, recorded 2,749 funds managed by 517 asset management firms, with a combined total AuM of US$444.81 billion as at the 29th June 2026.
The US and Iran continue to exchange fire and trade blame. In recent days, Bahrain was struck by Iran, while other targets, including those along the Omani coastline and in the Straits of Hormuz, have also come under attack. This latest escalation may be a stark reversal from just last week when mediators described the progress toward a peace deal as “encouraging”. Yet, given the fragile backdrop, it is hardly surprising.
At the time of writing, oil prices continue to fall. Islamic equity indexes have also fallen sharply after an earlier rally driven by hopes of de-escalation. Meanwhile, economists are finding it increasingly difficult to predict the US Federal Reserve’s next move on interest rates, although many still expect the overall policy direction to remain hawkish.
In this state of flux, we see Iranian authorities doubling down on opening their financial markets by allowing local money managers to set up foreign currency fixed income investment funds. This new asset class, overseen jointly by the capital markets regulator and central bank, enables managers to deploy foreign currency resources in non-rial financial assets including Sukuk and deposits. In the same week the new regulations were announced, it was confirmed that several entities have already secured the greenlight to launch their own foreign currency investment vehicles including Tamin Sarmayeh Kimia and Bank Mellat.
Iran is not the only one manufacturing new products. The UAE welcomed another Islamic ETF and so will Saudi Arabia. The Saudi kingdom is a gold mine, and players are moving in to chase yields – with a new license, Saaf Capital will enter the investment management space with new Islamic funds, while MEFIC Capital seeks to strengthen its market position by increasing the size of its Islamic REIT.
Meanwhile Yaqeen Capital rolled out a SAR600 million (US$159.99 million) Shariah private real estate fund to develop assets in Medina. At the same time, a consortium of property developers and Jadwa Investment announced plans to set up a real estate investment fund focused on developments in Mecca.
These new funds build on the billions already invested in the holy cities of Mecca and Medina, supported by 2025 regulatory changes that allow foreign investors to access these strategically important real estate markets through structured investment vehicles.
This strategic appeal extends across the wider GCC, where international investors continue to increase their exposure. Global real estate heavyweight Hines, together with Islamic investment veteran Arcapita, have committed to set up a dedicated institutional-grade platform to originate and execute Islamic investments into industrial and logistic real assets across the region.
We round up the week highlighting that the Malaysian government intends to court Russian investors using Islamic instruments, a move that could inject fresh cross-border Shariah investment flows. Also worth watching is Sime Darby’s new Islamic real estate investment platform. Backed by big names such as the Employees Provident Fund and Great Eastern Life Assurance, the fund is looking to raise up to RM2.6 billion (US$626.7 million) through a Sukuk Wakalah program.
