The Sultanate’s small but solid banking sector has been going through some significant changes in recent times. Consolidation has led to fewer lenders, a process that is likely to continue, while at the same time those banks that do remain are some of the best resourced in the region. Indeed, Brunei Darussalam’s banks have high levels of liquidity, good capital adequacy ratios and well-managed…
With the recent descent of oil and gas prices on international markets, the role and future direction of the Sultanate’s industrial sector has never been of greater importance to Brunei Darussalam’s economy. Indeed, diversification away from hydrocarbons production is greatly contingent on industry taking a larger share of the country’s GDP. This necessary shift towards more knowledge-based,…
A powerhouse regional oil and gas producer, Brunei Darussalam has benefited significantly from a long history of hydrocarbons production in partnership with international oil companies. The energy sector continues to dominate the economy today, accounting for the majority of government revenues, GDP and exports. However, the sector is facing a host of concurrent challenges – production at Brunei…
One of the largest exporters of oil and gas in South-east Asia, Brunei Darussalam has long benefitted from its strong trade relationships with Japan, China and its ASEAN neighbours, building a robust trade surplus in the years to 2014 on the back of rising exports and elevated petroleum prices. The oil market’s mid-2014 turnaround has had a dramatic impact on the Sultanate’s trade balance, however,…
A high-income country with vast petroleum wealth, robust fiscal reserves and a small, highly- educated population, Brunei Darussalam is unique among the ASEAN community. Oil and gas resources have generated high per-capita income, although the economy has contracted in recent years as a result of falling oil and gas prices, which account for more than 90% of export revenues. Although historically high…
While both 2015 and 2016 have held numerous important changes for Brunei Darussalam, the nation has long maintained its unique balance of tradition and modernity. Classified as a unitary Islamic monarchy, the Sultanate has maintained a stable form of government since its independence in 1984. Historically, the oil and gas industry has dominated the Bruneian economy and has allowed the Sultanate to…
Brunei Darussalam made headlines in April with the announcement of several sukuk (Islamic bond) offerings ahead of the launch of a standalone stock exchange in the Sultanate. Efforts to expand the scope of the financial sector are aimed at ensuring a greater diversity of public and private sector financing, specifically in support of businesses and large infrastructure projects. A roadmap of financial…
Infrastructure was a major beneficiary in Brunei Darussalam’s budget for FY 2016/17, alongside other key segments of the economy expected to steer the country toward more robust growth. Weaker performances in the hydrocarbons and services sectors dampened the Sultanate’s economic performance in the final quarter of 2015, leaving growth in negative territory at the end of what proved to be a challenging…
Preparations for the launch of a standalone stock exchange in Brunei Darussalam look to be moving ahead, supported by progress on a regulatory framework for the bourse. The Sultanate’s long-awaited exchange could open as early as next year if the groundwork is in place, according to the Autoriti Monetari Brunei Darussalam (AMBD), which oversees the country’s financial sector and is developing…
The aviation industry in Brunei Darussalam is looking to expand its contribution to the economy, with a new code-sharing agreement and ongoing investment in flight training facilities expected to increase passenger figures and stimulate employment. In mid-February Royal Brunei Airlines (RBA) finalised a code-sharing agreement with Turkish Airlines (THY) that is expected to increase passenger demand…
