Brunei’s Islamic finance sector has shown remarkable growth, reflecting global trends despite economic challenges. Over the last five years, Islamic financial assets worldwide surged by 69 per cent, with projections indicating the global industry will reach USD5.9 trillion by 2026.
In line with this global expansion, more than half of Brunei’s financial assets were held by Islamic financial institutions in 2023, amounting to BND13.3 billion.
Banks and financial institutions accounted for over 95 per cent of these assets, while Takaful entities represented just under five per cent.
The significant growth of Brunei’s Islamic finance sector was highlighted by Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah during the opening ceremony of IsDB Group Day, held at Balai Khazanah Islam Sultan Haji Hassanal Bolkiah yesterday.
Minister of Religious Affairs Pehin Udana Khatib Dato Paduka Seri Setia Ustaz Haji Awang Badaruddin bin Pengarah Dato Paduka Haji Awang Othman also attended the event as a guest of honour.
Other notable attendees included Director and Resident Representative of the Regional Hub Indonesia, Datuk Amer Bukvić, Deputy Minister of Finance and Economy (Economy) Dato Seri Paduka Haji Khairuddin bin Haji Abdul Hamid, and Managing Director and Bank Islam Brunei Darussalam (BIBD) Chief Executive Officer Junaidi bin Haji Masri.
In his speech, Dato Seri Setia Dr Awang Haji Mohd Amin Liew stressed that Islamic finance has become a crucial driver of the Sultanate’s economic progress, significantly shaping the country’s financial sector and supporting its broader development goals.
He noted that Brunei Darussalam Central Bank’s Financial Sector Blueprint aims to foster a dynamic and resilient financial ecosystem, aligning with Brunei Vision 2035.
He believes that with a growing asset base and active participation from institutions like BIBD, Brunei is well-positioned to capitalise on the global growth of Islamic finance and realise its economic aspirations.
The minister also shared that the country has made strides in moving beyond its traditional reliance on oil and gas, through strategic partnerships with foreign investors and support from local financial institutions. These efforts have led to the development of new sectors such as petrochemicals, fertiliser, tourism, ICT and halal food, contributing to economic growth and a more diversified economy.
In addition to diversification, Dato Seri Setia Dr Awang Haji Mohd Amin Liew emphasised the importance of sustainability. “We have set ambitious goals to achieve net zero emissions and increase renewable energy usage, demonstrating our commitment to a greener future,” he said.
He highlighted that by investing in sustainable practices and exploring innovative financing mechanisms, Brunei is paving the way for a more resilient and environmentally-friendly economy. – James Kon
