Fitch: Malaysia’s Islamic Fund Assets Decline Due to Impacts of COVID-19; Saudi Arabia Sees Growth

Malaysian Islamic Funds have witnessed a 15% decline in its assets under management (AUM) due to the effects of the COVID-10 pandemic, according to a report by Fitch Ratings (Fitch). The report draws comparison of Malaysia’s Islamic funds to Saudi Arabia, citing stark differences in fund performance across both countries.

Fitch stated that although AUM in Saudia Arabian Islamic funds increased in the same period, Saudi Arabia remains more susceptible to declines in Islamic fund AUMs in the long term, particularly in the event of a prolonged market recovery.

Using Korean money market funds (MMF) as an example, Fitch noted that Korean MMF witnessed strong inflows at the start of...