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Borneo Bulletin Yearbook 2023
Meanwhile, in the
ICD-Refinitiv Islamic
Finance Development Report 2022:
Embracing Change
, Brunei Darussalam
was ranked 12
th
among 136 assessed
countries globally.
The report, based on 2021 data,
revealed that Brunei recorded 31 points
in the Islamic Finance Development
Indicator (IFDI), while the global
average indicator value declined to
9.0 in 2022 from 11.0 for 2021. The IFDI
2022 indicator score measures the
state of the development of the Islamic
finance industry in 2021.
The report also provides IFDI rankings
for notable Islamic finance markets
around the world. The recent IFDI
is based on an enhanced model
incorporating new metrics related to
Environment, Social and Governance
(ESG) and Islamic FinTech, and changes
to the weightage of each indicator.
The five main indicators for IFDI are
financial performance, governance,
sustainability,
knowledge
and
awareness indicators.
Brunei maintained its top place
in regulations, a sub-indicator of
governance measured by regulations
issued for Islamic banking; specific
accounting;
Syariah
governance;
Takaful;
sukuk
; Islamic funds; and the
FinTech sandbox. The country also
ranked fourth for sub-indicator on
events under the awareness indicator,
and fifth place for sub-indicator on
research under the knowledge indicator.
In terms of the financial performance
indicator, Brunei attained eighth place in
Other Islamic Financial Institution (OIFI)
assets with a value of USD2 billion. This
includes assets in FinTech companies,
investment firms, financing companies,
leasing and microfinance firms.
The Islamic finance sector in the
country has witnessed significant
growth in market share over the total
financial sector in terms of assets. In
its first semi-annual policy statement
released in July 2022, BDCB recorded
growth in the financial sector with total
assets of 7.9 per cent year-on-year and
total asset value of BND23.9 billion as
of the first quarter of 2022. The Islamic
finance sector accounted for 58 per
cent with BND13.9 billion.
Brunei Darussalamwill
continue to play its
role in accelerating the
internationalisation of
Islamic finance through
several initiatives, such
as introducing more
Syariah-compliant
financial products
and services that
meet diverse global
demands.