BANDAR SERI BEGAWAN: As of Q3 2025, the market share of Islamic finance continued to constitute the majority of Brunei Darussalam’s financial sector, representing 57.5 per cent of total financial assets.
This provides the Sultanate with a unique comparative advantage to further position itself as a niche Islamic finance hub, particularly in sukuk financing, Syariah-compliant capital market development, and Islamic Fintech innovation.
The central role played by Islamic finance in the country’s financial system was highlighted by Minister of Primary Resources and Tourism Dato Seri Setia Dr Abdul Manaf Metussin (pic) as chairman of Brunei Darussalam Central Bank (BDCB) in his keynote address at Bank Islam Brunei Darussalam Berhad (BIBD)BIBD Market Outlook 2026.
The minister said, “The development of deeper and more diversified Islamic capital markets is increasingly important. As the sultanate advances its economic diversification agenda, we expect greater demand for long-term financing to support infrastructure, downstream industries, and foreign direct investment flows.
“Sukuk financing can play a pivotal role in mobilising regional and domestic capital, while enabling broader participation by both corporations and retail investors.
“It also strengthens financial inclusion and deepens market participation across the economy, providing stable funding sources that are aligned with syariah principles and national development priorities. To this end, the government has thus far issued BND18.18 billion worth of Sukuk Al-Ijarah since its maiden offering in April 2006,” the minister emphasised.
Dato Seri Setia Dr Abdul Manaf revealed, “Recognising such potential, BDCB has been advancing strategic initiatives to strengthen the nation’s Islamic finance ecosystem. This includes realigning Islamic finance strategies, which among others, comprises the development of Islamic windows for the banking sector and a Syariah Talent Development framework.”
The minister is also encouraged by the constructive and positive feedback received from industry participants, which reflects strong interest and readiness to further develop this segment.
“It is through sustained and collective efforts such as these that Brunei Darussalam has maintained its standing among the top 15 countries globally, as reflected in the Islamic Finance Development Report 2025, while reinforcing the importance of continuing initiatives to further strengthen the ecosystem.”
“We see meaningful opportunities at the intersection of Islamic finance and technology.
Brunei Darussalam is well-positioned to serve as a test-bed for Islamic Fintech innovations, including Syariah-compliant crowdfunding and smart-contractenabled financing solutions.
The central bank remains committed to ensuring a supportive regulatory environment to drive greater innovation,” said the minister.
He said, “Currently, efforts are underway to expand participation in the FinTech Regulatory Sandbox by allowing licensed financial institutions to pilot their fintech solutions before scaling them across the wider market. These efforts are complemented by BDCB’s other initiatives, including the Sustainable Finance Roadmap 2025-2030.”
As Brunei Darussalam’s capital markets continue to develop, a strong emphasis on sound disclosure, he iterated “governance and investor protection will be critical to sustaining market confidence and reinforcing Brunei Darussalam’s credibility as a reliable market for Syariah-compliant instruments.” – Borneo Bulletin/ANN
