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KembaraXtra–Islamic Finance–Islamic Capital Market-
Growth and Investment Allocation
Global Size and Growth of Islamic Asset Management
• More than 1,410 functional Islamic funds are operating worldwide
• By end-2017, total global Islamic Assets Under Management (AUM) reached US$110 billion
• According to Eurekahedge (2019), total live and obsolete Shari’ah-compliant funds globally numbered 828
• Islamic finance industry overall reached US$2 trillion by end-2015, with funds showing moderate but steady growth
Number and Types of Islamic Funds
• By end-2017, 516 live Islamic funds were operational globally
• Distribution of fund strategies:
– Mutual funds / Unit trusts: 367 funds (88% of strategies)
– Equity funds: 25 funds
– Investment trusts: 23 funds
– Structured products: 22 funds
– Closed-ended investment companies (CEIC): 15 funds
Value of Islamic Mutual Funds
• Global Islamic mutual fund assets reached US$97 billion by end-2018
• Managed by 261 global Islamic fund managers
• Only six Islamic funds exceeded US$1 billion in size, indicating limited large-scale fund presence
Minimum Investment and Geographic Mandates
• Average minimum investment size estimated at US$1.087 billion
• Regional investment focus of Islamic funds:
– Middle East & Africa: ~50%
– Asia Pacific: ~33%
– Global mandate: ~26%
Regional Concentration of Islamic Funds
• Funds mainly concentrated in:
– GCC countries
– Southeast Asia
– Followed by the United Kingdom
Country-Level Distribution of Islamic Funds (2019)
• Malaysia: 440 funds (largest globally, 38.5% of assets)
• Saudi Arabia: 206 funds (28% of total assets)
• Indonesia: 234 funds
• Iran: 165 funds
• Luxembourg: 161 funds
• Pakistan: 178 funds
• South Africa: 118 funds
• Kuwait: 18 funds
• United States: 6 funds
Asset Growth Trend (Islamic Funds and Sukuk)
• Growth in Islamic fund assets (US$ billion):
– 2012: 46
– 2013: 54
– 2014: 59
– 2015: 66
– 2016: 91
– 2017: 110
– 2023: 325 (projected)
• Growth in Sukuk outstanding (US$ billion):
– 2012: 260
– 2017: 426
– 2023: 783
Market Concentration and Growth Potential
• Five jurisdictions account for over 90% of global Islamic fund AUM
• Islamic funds remain highly concentrated in Malaysia, Saudi Arabia, and Iran
• Many Muslim-majority countries with Islamic banking systems still have small Islamic fund sectors
Asset Allocation Trends
• Equity assets are the most popular investment class among Islamic funds
• Growth in Islamic fund AUM strongly supported by rising global equity markets
• GCC region held approximately US$36 billion in Islamic fund assets in 2019
Future Outlook
• By 2024, global Islamic fund AUM is projected to reach US$216 billion
• Islamic funds are still less popular than conventional funds but show strong long-term growth potential
One-line Summary
👉 Islamic asset management is growing steadily but remains regionally concentrated, equity-focused, and under-scaled, with significant potential for expansion as global Islamic capital markets mature.
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