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June 30, 2024

Islamic Finance and Fintech Sectors Poised for Continued Expansion in Brunei

brunei fintech announcement
Brunei Darussalam Central Bank Managing Director Hajah Rokiah Badar delivers a speech. - PHOTO: Borneo Bulletin/ANN — https://www.thestar.com.my/aseanplus/aseanplus-news/2024/06/04/brunei-central-bank-to-launch-centre-to-spur-innovation-in-financial-sector
June 30, 2024

On June 3, Managing Director Hajah Rokiah binti Haji Badar from the Brunei Darussalam Central Bank (BDCB) announced the launch of a financial technology (FinTech) innovation center dubbed “Mekar” slated for later this year. Mekar is aimed to serve as a user-friendly platform for FinTech related activities in Brunei. The goal of this development is to spur greater innovation in the financial services sector, which is one of the key target sectors under Brunei's economic diversification strategies.

Managing director Hajah Rokiah recalled initiatives in developing Islamic finance in the Sultanate, which included the Syariah Governance Framework, introduced in 2018 and amended in 2023, to ensure structure, process, products and services of Islamic financial institutions are in accordance with Syariah principles. She also revealed that, to date, 232 government sukuk have been issued amounting to BND16.99 billion (USD12.6 billion). The BDCB Islamic Bills program, as originally introduced in 2020, aims to support banks.

The country's Islamic finance sector assets reached a staggering BND13.3 billion (USD9.8 billion) in 2023, comprising 57.2 percent of the nation’s financial market share. Minister of Finance and Economy II Amin Liew Abdullah hailed the sector’s development as a catalyst for economic prosperity, emphasizing the pivotal role played by Islamic financial institutions in providing financing, savings, and investment opportunities, thereby stimulating economic activities and job creation.

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