Nestled in the heart of Southeast Asia, Brunei Darussalam, with a population of approximately 450,500, offers a strategic gateway to the burgeoning ASEAN market.
This small nation, spanning 5,765 square kilometres, parallels the UAE through the role oil and gas has played in its economic development. However, much like its Middle Eastern counterpart, Brunei is rapidly diversifying, emerging as a regional hub in high-value sectors such as downstream industries, food production, and high-tech services.
Brunei’s transformation is underpinned by its excellent geographic positioning within ASEAN. A mere three-hour flight from major cities across the region, coupled with regular flights and expanding shipping links through the Muara Port, Brunei offers convenient access to a market of 672 million people.
The nation is actively enhancing its trade relations, being a party to major trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), which collectively reaches more than three billion people.
Investors are drawn to Brunei for several compelling reasons. The country allows for full foreign ownership in business, no personal income tax, low corporate taxes at 18.5%, political stability, a historic lack of significant natural disasters, and a commitment to environmental sustainability.
Its strategic location within ASEAN, legal framework aligned with commonwealth standards, and a highly educated, English-speaking workforce further augments its attractiveness as a business and investment destination. Brunei’s government also actively engages in joint ventures, particularly in high-potential foreign direct investments (FDIs), fostering an environment conducive to growth and innovation.
Central to facilitating these investment opportunities is the Brunei Economic Development Board (BEDB). With a vision to foster a resilient and diversified economy, BEDB’s Investment Promotion and Facilitation (FAST) acts as the focal agency for both foreign and domestic investors.
From market and feasibility studies support to ongoing facilitation through its Investors’ Concierge service, BEDB ensures a seamless transition for businesses entering Brunei offering tailored relationship management and extending support from the early stages through to aftercare services once projects are implemented.
Moreover, BEDB’s Industrial Site Management (ISM) develops and manages industrial parks across the nation tailored to different industrial clusters, ensuring efficiency and fit-for-purpose facilities.
The board’s Enterprise Development unit, known as DARe, provides support and resources to local enterprises to spur innovation and growth, thus enabling fruitful collaborations between foreign investors and local businesses.
Looking ahead, Brunei is focused on diversifying its economy through the Economic Blueprint guiding towards achieving its Wawasan (Vision) Brunei 2035. The government has identified five key sectors for economic diversification and investment – downstream oil and gas, food production, tourism, services (including aviation and maritime), and ICT.
Each of these sectors presents unique opportunities for investors while drawing on Brunei’s existing strengths. For instance, leveraging its upstream oil & gas capabilities and availability of feedstock from existing petrochemical facilities, Brunei’s downstream sector aims to become a regional chemical hub. In food production, one emphasis is on establishing Brunei as a hub for halal food exports.
In all these endeavors, Brunei prioritizes sustainable development and the use of innovative, technology-driven solutions to improve the quality of life for its population.
Tourism in Brunei capitalizes on its pristine rainforests and rich biodiversity, offering potential in eco-tourism and cultural experiences. The maritime and aviation sectors are set to transform Brunei into a significant trading and logistics hub through exports and transshipment activities, further enhancing its strategic importance in ASEAN, and the country’s ICT sector has a robust telecommunication infrastructure and educated workforce to set up export-oriented operations.
As Brunei redefines its role in the global and ASEAN markets, it emerges as a significant contender for investment from the UAE and beyond. The efforts of BEDB underscore the country’s commitment to fostering a stable, supportive environment for investors. This commitment to growth and diversification presents UAE investors with a strategic opportunity to tap into the expanding ASEAN economic landscape.
For those considering expanding their business or exploring new ventures, Brunei offers a combination of reliability, strategic positioning, and substantial support. Further details on investment opportunities can be accessed through the BEDB’s investment promotion website at www.invest.gov.bn, or by direct inquiry at info@invest.gov.bn.
This article was extracted from the Gulf News’ Brunei Business Feature published on July 29, 2024.
