Islamic Financial Centre Planned For Brunei

The City of London Corporation wants to help set up a financial centre in Brunei that would include Islamic finance as well as Private Finance Initiative (PFI) and Public-Private Partnership (PPP) project finance, said the Lord Mayor of London yesterday.

With the government having already embarked on a diversification programme to reduce the country's heavy dependence on hydrocarbons, Alderman David Lewis, the 680th Lord Mayor of London, said PPP and PFI project finance will be necessary in order for Brunei to achieve all the projects that will be built over the next few years.

To achieve the projects, Brunei "will need private sector finance and not just public sector finance", Lewis told local press following high tea with the Britain Brunei Business Forum at the Empire Hotel and Country Club's Li Gong restaurant.

Brunei's decision to propose a financial centre, which has been spoken about for many years but

has yet to be implemented, comes as part of the diversification programme.

Pehin Orang Kaya Laila Setia Dato Seri Setia Hj Abdul Rahman Hj Ibrahim, the Minister of Finance II, has previously said that the Sultanate's unblemished Islamic credentials, its economic and political stability and its strategic location in Asia has made it a prime candidate as a successful financial and regional Islamic fund management centre.

Brunei already has the required infrastructure along with the legal and regulatory framework to promote business and at the same time it could protect the rights of all stakeholders, making the country a safe financial haven, the minister said.

Lewis told local media yesterday that UK firms may also express interest in investing in the Pulau Muara Besar port hub, particularly in the construction and finance phase.

'As money comes on stream, at the moment nothing has been built, but the City of London would be extremely pleased to cooperate with the Brunei authorities to achieve that sort of facility."

The Lord Mayor and the Lady Mayoress of London, Theresa Lewis, arrived in the Sultanate on Saturday for a two-day visit as part of a four-country Asian tour including Singapore, Taiwan and Japan to improve financial ties.

"I'll take back with me a great deal of optimism, and also some optimism that Brunei's economy is doing extremely well," said Lewis prior to his departing flight yesterday evening.

"Brunei is an oasis of calm when the rest of the world is going through a turmoil. There are opportunities for Brunei to invest abroad at this particular time because it is cash rich, the economy is strong and the rest of the world will take at least a year to recover."

"I think Brunei is very strong and is one of the very few countries in the world where the happy state of affairs exist. So it must make the best of opportunities, because it is in a very fortunate position."