Overview of BDIF

Islamic Finance Development

Guided by Wawasan Brunei 2035, Islamic finance plays a vital role in Brunei Darussalam’s financial services sector. Rooted in strong Islamic principles, it reflects the nation’s aspiration to become an international Islamic financial hub.

In line with this vision, Brunei Darussalam continues to advance Islamic finance as a key driver of a dynamic, sustainable, and diversified economy. Brunei Darussalam Central Bank (BDCB) remains committed to strengthening a resilient Islamic finance ecosystem that fosters innovation and supports sustainable long-term growth while safeguarding financial stability.

Omar Ali Saifuddien Mosque Bandar Seri Begawan Brunei Darussalam 2

The Islamic finance sector has grown substantially since the establishment of Brunei Darussalam’s first Islamic financial institution in 1991. Today, it includes an Islamic bank, an Islamic trust fund, and Islamic finance company, takaful operators, Islamic investment dealers, sukuk, and related services, with Islamic financial assets representing over 50% of the total market share. Efforts to further develop the sector are guided by the Brunei Darussalam Financial Sector Blueprint (FSBP).

The Brunei Darussalam Islamic Finance (BDIF) initiative highlights the nation’s Islamic finance ecosystem, providing access to key information on regulations, market players, products, and professional development opportunities.

Islamic Pattern

Meaning Behind the BDIF Logo

BDIF Logo
BDIF Brunei Icon
Brunei in focus

The word “Brunei” anchors the logo in national identity and reflects the nation’s leadership and commitment to advancing Islamic finance.

Brunei Jawi Icon
Heritage in script

The Jawi rendering of “Brunei” embodies the nation’s enduring connection to its Islamic values and cultural heritage.

BDIF IF Icon
Symbol of purpose

The “IF” acronym represents Islamic Finance and underscores Brunei’s strategic role in the global Islamic financial landscape.

Regulatory Landscape for Islamic Finance

Brunei Darussalam operates a dual financial system, comprising both conventional and Islamic finance. To ensure Syariah compliance within the Islamic finance industry, the country adopts a two-tier Syariah governance framework.

At the national level, the Syariah Financial Supervisory Board (SFSB) was established under the SFSB Order, 2006. The Board is responsible for determining the laws of Islam (Hukum Syara’) in relation to Islamic banking, takaful, Islamic financial business, Islamic development financial business, and other activities based on Syariah principles that are regulated or supervised by BDCB.

At the industry level, legislation requires each Islamic financial institution to establish its own Syariah Advisory Body (SAB). The SAB ensures that the Islamic financial institution’s operations and activities comply with Hukum Syara’.

BDIF Regulatory Landscape

Islamic finance activities in Brunei Darussalam are governed under several key legislations: the Islamic Banking Act, Cap 168 for Islamic banks; the Takaful Order, 2008 for the takaful sector; and the Securities Market Order, 2013 (SMO) along with the Securities Markets Regulations, 2015 (SMR) for Islamic capital market activities. These legislations are administered by BDCB, granting it the authority to supervise and regulate the sector to ensure financial stability.

Islamic financial institutions are subject to the same prudential standards and reporting requirements as conventional institutions.

In addition, BDCB has introduced specific regulatory requirements for Islamic financial institutions. These include the SFSB Order, the Notice and Guidelines to Financial Institutions on Syariah Governance Framework, the Guidelines on Internal Syariah Audit Framework, and the Guidelines on the Islamic Product Approval Process under Section 14 of the SFSB Order.