Brunei’s takaful sector grows

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Brunei Bank IslamAssets held by the Islamic insurance (takaful) sector in Brunei recently have grown significantly while those of conventional types of insurance have been declining, a report from the country’s central bank showed.

The monthly report from Brunei’s monetary authority, known as AMBD, said that in the year ended September 30, takaful assets rose 21 per cent to 425 million Brunei dollars ($336 million). Conventional insurers saw a drop of 1.3 per cent in assets during the same 12-month period.

The fast-growing takaful sector indicates Brunei is progressing toward its goal of having Islamic financial products account for up to 60pc of total banking assets in five years, compared with 40 per cent  at present.

At end-September, Brunei’s takaful market accounted for 33 per cent of total insurance assets, up from 29 per cent a year earlier, according to the AMBD report.

Brunei, which has Southeast Asia’s highest per-capita income after Singapore, aims to compete in Islamic finance with regional powerhouses Malaysia and Indonesia. That is part of a strategy to wean itself off dependence on oil reserves, which are expected to run out in about two decades, and diversify Brunei’s economy.

Brunei, Malaysia and Indonesia have the largest potential for retail Islamic banking in Southeast Asia.

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Reading Time: 1 minute

Assets held by the Islamic insurance (takaful) sector in Brunei recently have grown significantly while those of conventional types of insurance have been declining, a report from the country’s central bank showed.

Reading Time: 1 minute

Brunei Bank IslamAssets held by the Islamic insurance (takaful) sector in Brunei recently have grown significantly while those of conventional types of insurance have been declining, a report from the country’s central bank showed.

The monthly report from Brunei’s monetary authority, known as AMBD, said that in the year ended September 30, takaful assets rose 21 per cent to 425 million Brunei dollars ($336 million). Conventional insurers saw a drop of 1.3 per cent in assets during the same 12-month period.

The fast-growing takaful sector indicates Brunei is progressing toward its goal of having Islamic financial products account for up to 60pc of total banking assets in five years, compared with 40 per cent  at present.

At end-September, Brunei’s takaful market accounted for 33 per cent of total insurance assets, up from 29 per cent a year earlier, according to the AMBD report.

Brunei, which has Southeast Asia’s highest per-capita income after Singapore, aims to compete in Islamic finance with regional powerhouses Malaysia and Indonesia. That is part of a strategy to wean itself off dependence on oil reserves, which are expected to run out in about two decades, and diversify Brunei’s economy.

Brunei, Malaysia and Indonesia have the largest potential for retail Islamic banking in Southeast Asia.

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