Islamic finance is well established with Bank Islam Brunei Darussalam, which has over 600 employees, offering a full range of retail and investment Shariah compliant financial services. It also has Takaful and asset management subsidiaries. HSBC also offers Islamic banking services for the local market. There are no regulatory constraints to Islamic finance in Brunei. Muslims comprise over two thirds of the population, but as this numbers only 428,000, the market for banking services is very small. Economic growth has been disappointing in recent years, and is predicted to be 1.1% in 2010, one of the lowest rates in Asia. Islamic banking penetration of the market is increasing, but consumer awareness of the products on offer is limited. Events such as the IFN Roadshow on the 13th December can help spread awareness among finance professionals, but this may be preaching to the already converted. Reaching out to the still uncommitted public is more of a challenge, with no obvious answers.
PROFESSOR RODNEY WILSON
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