Islamic Finance Daily Brief — Monday, October 12, 2026

Assalamu alaikum! Today's Islamic finance stories — and what to learn from them.

Today's news

🇬🇧 1. (From September) Nomo partners with Allfunds for Shariah-compliant digital investments

Nomo, the UK-based Shariah-compliant digital bank, has partnered with Allfunds, the Spain-headquartered fund distribution platform, to power its fully digital investment service, Nomo Investments. The deal gives Nomo app customers access to professionally managed Shariah-compliant global portfolios without leaving the app. Nomo is part of BLME (Bank of London and The Middle East), which is owned by Kuwait's Boubyan Bank.

What to learn: A managed portfolio is a ready-made basket of investments that professionals choose and adjust for you. The investment here is going into Nomo's app: a UK Shariah-compliant digital bank building a fully digital investment service for its customers. The technology underneath is Allfunds' distribution platform — the business-to-business marketplace where fund managers list funds and banks shop for them. Without it, Nomo would need a separate deal with each fund manager, each with its own settlement steps and paperwork. Plugging into Allfunds gives Nomo one connection to thousands of funds, with dealing, settlement, data, and compliance handled in one place. For Islamic finance, this is conventional infrastructure carrying Shariah-compliant products: the portfolios are screened and overseen by Shariah boards, while Allfunds provides the rails. Allfunds is not an Islamic company. It has carried Shariah-compliant funds before, like SEI's Islamic funds for Gulf banks. What changes after this deal: Muslim customers get managed Shariah portfolios inside their banking app with no separate brokerage account, and the same rails can carry Nomo into new countries, since Allfunds already operates across Europe, the Middle East, and Asia.

🔗 Source: IFN Investor

Learn

Purification — cleaning the small haram income from halal investments

Even a screened halal fund can earn a tiny amount of interest, for example on cash balances sitting between trades. Purification means giving that impure portion away to charity instead of keeping it. Fund providers publish a purification amount per share each year, usually a few cents. You multiply that by the number of shares you hold and donate the result. Purification is separate from zakat: zakat is your obligation on wealth, and purification cleans income you should not have kept. A practical habit is to handle both once a year, at the same time.

Why it matters for learners: Screening keeps most of your portfolio halal. Purification takes care of the small remainder, so your earnings stay clean.

All sources

IFN Investor — Market picks up momentum in September on the back of healthy Islamic investment pipeline (Sep 2026)
Fintech InShorts — Sharia-compliant investments: Nomo Partners Allfunds (Sep 2026)
Banking Gateway — SEI partners Allfunds Bank to offer Shariah compliant investment solutions

For educational purposes only — not investment advice. Nothing here is a recommendation to buy, sell, or hold any security. Iftikar is not a licensed financial advisor. AI-assisted content can contain mistakes; do your own research and consult a qualified professional before making financial decisions.