Abstract
Brunei is among the few countries vigorously pursuing interest-free banking. Looking at
its status, there is no doubt that Islamic banking and finance remains a governmental
project in Brunei. This paper examines the development and progress of this institution in
Brunei highlighting the present experiences, future prospects, and imminent expectations.
Islamic banking and finance has ushered in a new economic order in the country.
Although the system is still in its primary stages of development, it has been successful.
Indeed, it has good prospects due to political will and cooperation. Political will is
fundamental to the fruitful implementation of a new economic order and efficient
Islamization in Brunei has facilitated the establishment of sound socio-cultural and
economic foundations vigorously promoting the essential values of Islam. Nonetheless,
the ‗call‘ for economic diversification has some implications for interest-free banking
institutions in the country because diversification invariably exposes an economy to
international interests and more importantly, empowers the private sector. These bring
forth the likelihood of promoting interest-based banking and financial practices. We,
therefore, conclude that Islamic banking has been very successful in Brunei but it still
remains vulnerable to non-political future challenges subject mainly to the economic
fortunes and prospects of the petro-dollar.
Jibrail Bin Yusuf, Hassan Shakeel Shah, Mohammad Ayaz, Jabal Muhammad Buaben. (2018) Interest Free Banking and Finance in Brunei Darussalam: Present Realities and Future Prospects, Journal of Islamic Thought and Civilization, Volume VIII, Issue 2.
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