BEST ISLAMIC FINANCIAL INSTITUTIONS IN BRUNEI (GLOBAL FINANCE 2008) : Islamic Bank of Brunei

On 7th July 2005, an announcement was made by the Ministry of Finance that His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin Waddaulah, Sultan and Yang Di-Pertuan of Negara Brunei Darussalam has consented for the proposed merger of the Islamic Bank of Brunei Berhad (IBB) and the Islamic Development Bank of Brunei Berhad (IDBB).

A “Vesting Order” was obtained from the High Court of Brunei Darussalam on the 1st of May 2006, effectively transferring all assets and liabilities of both IBB & IDBB and its subsidiary companies to Bank Islam Brunei Darussalam Berhad (BIBD). Thus BIBD was fully operational on 3rd July 2006.

Bank Islam Brunei Darussalam Berhad has 14 BIBD branches located at strategic locations in all the four districts; 11 branches located in the Brunei Muara District, 1 Branch in the Tutong District, 2 located in the Kuala Belait District and 1 located in the Temburong District.

To further cater its obligation to provide the best services and facilities to its customers, BIBD also has the single largest distribution of ATM network’s in the country i.e. 50 locations at every district, on all BIBD branches and offsite locations. As such, it has employed over 500 officers and staff to work at the offices and branches.

BIBD has also subsidiary companies under it, which are Takaful BIBD Sdn Bhd, which provides insurance coverage and investments, and BIBD At-Tamwill Berhad, which provides fixed deposits, vehicle hire purchase and consumer product financing.

The current Board of Directors for BIBD are :

Yang Berhormat,Pehin Orang Kaya Hamzah Pahlawan Dato Seri Setia Awang Haji Abdullah bin Begawan Mudim Dato Paduka Haji Bakar, Minister of Development, Chairman of Bank Islam Brunei Darussalam Berhad

Yang Berhormat,Pehin Orang Kaya Seri Dewa Mejar Jeneral (B) Dato Seri Pahlawan Haji Mohammad bin Haji Daud, Minister of Culture, Youth & Sports, Deputy Chairman of Bank Islam Brunei Darussalam Berhad

Yang Mulia Tuan Haji Bahrin bin Abdullah, Permanent Secretary,Ministry of Finance Director of Bank Islam Brunei Darussalam Berhad

Yang Mulia Iqbal Ahmad Khan,Director of Bank Islam Brunei Darussalam Berhad

Yang Mulia,Tuan Javed Ahmad,Director and Acting Managing Director, Bank Islam Brunei Darussalam Berhad

BIBD’s Corporate Secretary is :

Yang Mulia,Noraini binti Haji Sulaiman, Corporate Secretary, Bank Islam Brunei Darussalam Berhad

The BIBD Syariah Advisory Members are as follows :

Yang Dimuliakan,Pehin Orang Kaya Paduka Setia Raja Dato Paduka Seri Setia Haji Awang Suhaili bin Haji Mohiddin,Chairman of Syariah Advisory Body

Yang Mulia,Dato Seri Setia Haji Awang Metussin bin Haji Awang Baki,Member of Syariah Advisory Body

Yang Mulia,Dr Hajah Masnon binti Haji Ibrahim,Member of Syariah Advisory Body
Yang Mulia Awang Haji Mazanan Bin Haji Yusof,Member of Syariah Advisory Body
Yang Mulia Awang Haji Shukri bin Haji Ahmad Secretary of Syariah Advisory Body

BIBD is always striving to introduce new, innovative and sophisticated Islamic Banking products and services to the public. Amongst the products launched were :

Introduction of the Sukuk Al Ijarah BLNG worth B$100 million on 23rd August 2006, whereby BIBD was appointed by Brunei LNG Sdn. Bhd. to be the underwriter and lead arranger for the Sukuk.

In collaboration with Brunei Shell Marketing (BSM), Ministry of Development and Ministry of Finance, Bank Islam Brunei Darussalam Berhad launched the Electronic Kad Inden to replace the existing Goverment Manual Kad Inden. With the electronic Kad Inden, it gave convenience to Governments offices to purchase fuel and other products available at the fuel stations in Brunei Darussalam.

Ministry of Finance has also appointed BIBD as the lead manager for the Government Sukuk Al Ijarah (short term) worth B$120 million

BIBD Musyarakah Musahamah and Al-Bai Tradable Musyarakah Certificate, the 1st of its kind were introduced. The certificates provide form of investment to the general public.

Launching of the BIBD Kad M to the public, i.e. purchasing of fuel using the card instead of paying cash at participating Shell stations.

Introducing the BBA Baiti Financing for houses in collaboration with Supercrete Trading Sdn. Bhd. i.e. purchasing of houses at affordable rates.

Principal Protected Investment, an Islamic Investment solution with 100% capital protection and 3 year lock-up period.