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.

Best Takaful Provider (Global Finance 2008) : Solidarity Group

Solidarity was established with the vision of becoming the world’s leading takaful Company, generating superior returns for shareholders and policyholders alike. The plans for increase of capital, growth by geographical expansion and acquisition currently being articulated, have highlighted the need for corporate re-structuring in order to focus more effectively on achieving these objectives.

During 2007, the Company had three key areas of activity; General Takaful, Family Takaful, and Asset Management & Investments. These were supported by centralised Corporate Services covering Human Resources, Information Technology, Legal & Compliance, Finance and Corporate Communications.

In order to meet Solidarity’s planned business growth and strategic expansion, during 2007, the Board approved a proposal to convert the Company’s corporate structure into a group holding structure.As a result, Solidarity has recently restructured into an insurance Group with the Company becoming Solidarity Group Holding, having two fully owned subsidiaries – Solidarity Family Takaful Company and Solidarity General Takaful Company – incorporated to carryon the group’s core takaful operations -providing Family & General Islamic Sharia compliant takaful products respectively.

Solidarity’s vision is to be a leading international Islamic-oriented financial services group generating superior returns to shareholders.Solidarity’s mission is to provide a range of Shariah compliant protection, savings and investment products with quality customer service.As a responsible corporate member of the communities it serves, Solidarity values (in alphabetical order):Innovation, Integrity, Social Responsibility, Teamwork & Partnership and Transparency.

The Company is controlled through its Board of Directors. The Board’s main roles are to provide entrepreneurial leadership, approve strategic policies, plans and objectives and ensure that the necessary financial and other resources are made available to meet those objectives. The Board has formed two sub-committees, the Executive Committee and the Audit committee. The roles and responsibilities of these committees have been defined by the Board.

The Legal & Compliance Department is guided in executing its works by the Anti-Money Laundering Manual. The AML Manual contains policies, procedures and guidelines adopted by Solidarity, to ensure compliance and adherence to the requirements of the Anti-Money Laundering Act & Legislation as well as the Financial Crime Module (“FC module”) of the Insurance Rulebook (Volume 3) issued by the Central Bank of Bahrain (CBB), with relevant updates being issued from time to time.

The Compliance Department exists as a mechanism for ensuring that the sales standards of Solidarity Company are met. These standards are derived from the internationally accepted principle of best advice and the regulatory requirements of the financial supervisory bodies in the territories in which Solidarity will write business. It is anticipated that, with time, external regulation will increase and that, as it does, Solidarity’s standards will adapt to accommodate the new requirements.

The Internal Audit department is an independent appraisal activity established within Solidarity to examine and evaluate its activities. The objectives of internal auditing are to assist members of the organization in the effective discharge of their responsibilities by furnishing them with analysis, appraisals, recommendations, counsel, and information concerning the activities reviewed and by promoting effective control at reasonable cost.

The authority and responsibilities of the Department are established by the Audit Committee on behalf of the Board of Directors. Internal audit staffs are authorized, within agreed plan and mandate, to review all areas of the Company and to have full, free, and unrestricted access to all Company activities, records, property, and personnel.

Good corporate governance requires ensuring that the board of directors and the management have established appropriate organizational processes and corporate controls to measure and managing risk across the business. All businesses in a free market are exposed to risks which, while existing from inception, are becoming increasingly complex in so far as source of risk is not only getting wider but also changing rapidly. The Group risk management function aims to establish “a comprehensive and integrated risk management framework for managing company wide risk in order to maximise the company’s value” and to benefit the business in terms of improved performance, increased organizational effectiveness and better risk reporting.
Solidarity’s Strategy depends heavily on continuously strengthening its human resources, especially Bahraini resources, which in turn undergo development and training to meet with the firm’s vision and international standards. Solidarity currently boasts a diverse team of well trained and highly qualified professionals in all areas of practice – including insurance, finance, information technology, management, investment and law.

The group’s support to the insurance and takaful industry in the Kingdom of Bahrain and the region is represented in Solidarity’s continuous efforts to further develop the human capital by providing educational workshops primed to highlight the importance of management skills and its role in developing a solid ground for future economic development.

The Solidarity Group, with its recently established flagship subsidiaries -- Solidarity Family Takaful and Solidarity General Takaful -- in the Kingdom of Bahrain, is going to improve the quality of Islamic financing services not just in the Middle East but worldwide. Takaful Islamic Insurance Company in the Kingdom of Saudi Arabia and Solidarity Takaful SA in Luxemburg are part of our family. We also hold strategic shares in number of Takaful firms operating in the Sultanate of Oman, the Hashemite Kingdom of Jordan, Malaysia and the Kingdom of Saudi Arabia. The Company operations have included several strategic acquisitions, investments and large scale projects. The Company participated in the establishment of First Insurance Company (plc.) in Jordan, and MAA Takaful Berhad in Malaysia. The existing relationship with Al Madina Gulf Insurance Company in Oman was further enhanced by providing a higher level of technical and service support. In Saudi Arabia, Solidarity signed a Memorandum of Understanding with Saudi Shareholders to establish a new joint-venture cooperative insurance company. With a paid-up capital of approximately Saudi Riyals 555 million, this new company will offer a comprehensive range of Takaful products. By merging Solidarity’s industry experience and Saudi Shareholders local market knowledge, this new venture aims to tap the growing demand in Saudi Arabia for takaful products and services. In addition, Solidarity has already obtained a preliminary license to commence its operations in the Arab Republic of Egypt. Solidarity has also applied to the appropriate regulatory authorities in UAE to establish takaful operations, while in Qatar; the Company is seeking a licence to operate within the Qatar Financial Centre. Together with its subsidiary in Luxemburg, Takaful SA, the Company now has a presence, either existing or in progress, in nine countries around the world. This is expected to increase in the next few years, as Solidarity continues to grow its global footprint through both organic and inorganic growth.
Solidarity, being a takaful group, maintains separate books of accounts for Shareholders and Policyholders transactions. The financial statements are prepared in accordance with Financial Accounting standards issued by Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and International Financial Reporting Standards (IFRS).