BBYB 2021

77 / 260

75
ISLAMIC BANKING
Islamic banking was first introduced in Brunei
Darussalam in the early 1990s. Since then, it has
played a significant role in the country’s banking
industry.
The Brunei Darussalam Financial Sector
Blueprint 2016-2025 (FSBP), published by
Autoriti Monetari Brunei Darussalam (AMBD) in
2016, identifies core areas where the financial
services sector – particularly in terms of Islamic
finance – can contribute to the country’s growth.
A key focus of financial sector development is
the strengthening of Brunei as an international
Islamic financial hub. According to the blueprint,
Brunei has recorded an increasing level of
foreign participation in domestic Islamic
financial markets, particularly in the Sukuk and
Takaful market.
Furthermore, initiatives will be put in place to
accelerate the internationalisation of Islamic
finance, establishing a more significant role for
the financial system in the intermediation of
international financial flows.
In order to achieve this goal, more innovative
Syariah-compliant financial products and services
will be introduced, meeting the more diverse
global demands for Syariah-compliant financial
solutions.
For more information about Islamic finance in
Brunei, visit the Brunei Darussalam Islamic
Finance (BDIF) website at . The
website aims to provide insights into the Islamic
finance industry and other unique Islamic
economy opportunities across different sectors
in Brunei.
According to the BDIF website, Brunei’s Islamic
financial ecosystem is made up of Islamic banks,
Takaful operators, Islamic investment dealers,
Sukuk and other ancillary services. Islamic
financial assets account for more than 50 per
cent of the total market share, and efforts are
underway to deepen the Islamic financial market.
Top 10 in Islamic finance market
In the ICD-Refinitiv Islamic Finance Development
Report 2019, Brunei successfully maintained its
ranking as one of the top 10 performing Islamic
finance markets out of 131 countries.
The report takes data accumulated in 2018.
Brunei scored 45 points in the Islamic Finance
Development Indicator (IFDI), which placed the
nation at the 10th position in 2019 and third in the
ASEAN region after Malaysia and Indonesia.