| Azlan Othman |
SYARIAH-COMPLIANT assets in Brunei Darussalam have shown remarkable growth in the second quarter of this year compared to two years ago, increasing 82 per cent, according to Minister of Home Affairs Pehin Orang Kaya Seri Kerna Dato Seri Setia (Dr) Haji Awang Abu Bakar bin Haji Apong.
Pehin Orang Kaya Seri Kerna Dato Seri Setia (Dr) Haji Awang Abu Bakar, who is also Deputy Chairman of Autoriti Monetari Brunei Darussalam (AMBD) Board of Directors, highlighted this when underlining the positive progress of the Islamic capital market in the Sultanate when delivering his keynote address at the two-day ‘Islamic Capital Market: Its Role in Catalysing Economic Growth’ conference which began yesterday at The Rizqun International Hotel, Gadong.
“The sovereign Sukuk market also continues to grow with the continuous support of the Government of His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi Waddien, Sultan and Yang Di-Pertuan of Brunei Darussalam. The total amount of issuances has reached BND12.3 billion so far, growing by more than 10 per cent annually on average for the past five years,” he said.
Islamic funds distributed to domestic investors meanwhile have held steady ground, totalling around BND100 million since 2017.
A major milestone in the Islamic capital market is the construction of the new AMBD building which will be funded through the issuance of Sukuk Ijarah Mausufah Fi Zimmah, the first infrastructure project in Brunei to utilise Sukuk financing,” the minister added.
Giving his forecast on the Islamic capital market in Brunei Darussalam in five years’ time, the minister said, “The market is still young, but five years from now, I hope to see a deep capital market that drives sustainable economic development through the efficient mobilisation of funds, leading to a thriving private sector and job creation.”
He continued, “To get there, we will need a vibrant network of talented individuals pushing the envelope; a close public-private partnership; market players who can serve all of society’s needs from the individual and the small business, to the conglomerate and the government; institutional investors that take a more proactive role to contribute back to the society; and an increase in product diversity and innovation.
“But more importantly, I envisage our capital market, and Islamic capital market specifically, to become a platform for Socially Responsible Investments (SRI) and Green Finance, in order to support the achievement of the United Nations Sustainable Development Goals.”
The minister also expressed his delight that the Islamic Financial Services Industry Stability Report 2018 included Brunei Darussalam as one of four countries with an excess of 50 per cent Islamic banking share in the domestic market, adding that he hopes that Brunei’s Islamic capital market will also experience similar developments.
Earlier, AMBD Managing Director Yusof bin Haji Abdul Rahman, who is also Chairman of Centre for Islamic Banking, Finance and Management (CIBFM), pointed out that key issues relating to the Islamic capital market, such as transformative regulations, cross-border integration and digital disruptors, are being deliberated at the conference.
Notable discussion points include insights on how to move forward and produce innovative and practical solutions to propel the Islamic capital market and Islamic finance in Brunei to a higher level.