Brunei still one of the top 10 performing markets for Islamic Finance

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A picture of the the Ministry of Finance and Economy headquarters taken from a distance. Image: Ridhwan Kamarulzaman

BANDAR SERI BEGAWAN

Brunei retained its ranking as one of the top 10 performing Islamic finance markets, according to the latest Thomson Reuters Islamic Finance Development Report.

The sultanate is ranked ninth among 131 countries, with its Islamic Finance Development Indicator (IFDI) increased to 50, from 47 last year.  This had also put the country at the second place in the ASEAN region, after Malaysia.

The IFDI measures five broad areas of developments that include quantitative development, knowledge, governance, corporate social responsibility and awareness.

Autoriti Monetari Brunei Darussalam (AMBD) in a statement said Brunei attained the top 10 position through two sub-indicators under awareness, which are Seminars and Conferences.

Brunei rose from 6th place to 3rd for Seminars and 2nd for Conferences – bringing the country to top 5 for Islamic Finance Events last year.

The Thomson Reuters report indicated Brunei as one of the countries that has strong regulatory landscape, with its governance being assessed through regulations, corporate governance and Syariah governance.

It also included Brunei’s financial sector growth, where Islamic banking asset increased from $10.9 billion in 2016 to $11.2 billion in 2017, accounting for 64 percent of the total market share of assets.

Brunei’s Takaful asset size also rose from $466.8 million in 2016 to $491.8 million in 2017, and its capital market asset size rose from $52.2 million in 2016 to $102.5 million last year.

Additionally, AMBD in the statement also pledged to continue bringing Brunei towards achieving excellence in Islamic Finance by creating a progressive eco-system that is on par with the international best practices – which is also in line with the needs of the local market.

The Bruneian