Is Brunei A Rich Country? [Economy Explained]

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Is Brunei A Rich Country?

Brunei is a rich country (one of the richest in Asia).

According to this article published by Global Finance Magazine in 2023, Brunei is the 11th richest country in the world and has been one of the wealthiest for decades, due to abundant oil and gas reserves. Three common questions travelers ask about Brunei include:

• Why is Brunei so wealthy?

• Is Brunei a developed country?

  and even

• Is Brunei a third-world country?

I’ll answer all three of these questions in this guide.

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Table of Contents

• Why Is Brunei So Wealthy?

• Concern For Brunei's Future?

• Is Brunei A Developed Country?

• The Brunei Dollar

• Conclusion

• Best Way To Find A Hotel In Brunei

• About The Author (Taz Zaidi)

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Why Is Brunei So Wealthy?

Brunei is wealthy (primarily) due to oil and gas.

The 1929 discovery of oil in Seria forever changed Brunei’s fortune. By that point, Brunei had already been under British rule for half a century. By 1991, the Seria oil fields had produced over a billion barrels, celebrated by the Billionth Barrel Monument.

Natural gas was discovered a few years after the oil was, leading to the creation of the Brunei LNG (Liquefied Natural Gas) plant in 1973. Brunei LNG is still one of the largest LNG plants in the world. Brunei is only the fifth-leading oil producer in Southeast Asia - behind Indonesia, Malaysia, Vietnam and Thailand. However, Brunei is geographically much smaller than those nations. Such high production from a relatively small country, coupled with low population density, resulted in oil profits accumulating quickly.

Crude oil and natural gas exports have made Sultan Hassanal Bolkiah (Brunei’s current leader) one of the world’s richest people. Forbes ranked Sultan Bolkiah as the world’s richest man in 1988, and he’s been at or near the top of such lists ever since. Through his wealth, Bolkiah has commissioned many impressive structures in Brunei, including national mosques and Istana Nurul Iman (world’s largest residential palace).

Oil and gas profits have increased quality of life for the average Bruneian. These days, Bruneians have access to free healthcare, free education and low-priced petrol. Bandar Seri Begawan (the capital), has transformed into a modern, clean city. Another benefit of properly managing its oil profits has been Brunei’s ability to preserve its virgin rainforest. Since the country hasn’t been forced to clear swaths of land in favor of industry, so much of its rainforest has been protected, resulting in lush areas, like Ulu Temburong National Park.

*For today’s deals on hotels in Brunei (or any other destination), click here.

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Concern For Brunei’s Future?

As is the case with many countries, Brunei’s natural resource dependence also makes it a bit vulnerable.

As of 2023, oil and gas make up more than 80% of Brunei’s exports and more than half of the country’s GDP. Due to this, the Brunei government is focused on diversifying its economy to reduce the dependence and pressure on its oil industry. Brunei has focused on building the service sector, among others. Brunei also incentivizes foreign investment. An example being the Temburong Bridge, the longest in Southeast Asia and an architectural marvel. The bridge was a joint project between Brunei, China and South Korea. Due to its geographical location, Brunei has long been isolated from the world’s economic powerhouses. But now that Bandar Seri Begawan has transformed into a modern city, along with the rise of Southeast Asia as a region, Brunei is integrating itself into the global economy.

*For today’s deals on hotels in Brunei (or any other destination), click here.

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Is Brunei A Developed Country?

Brunei is considered a developed country.

As one of the last countries to gain independence from the British Empire, Brunei definitely had a late start to the “modern era”. After over 100 years of subjugation to foreign rule, Brunei got its independence on January 1st, 1984. As one of the world’s youngest post-colonial countries, Brunei has made some respectable economic progress (compared with countries under 50 years old).

But while Bandar Seri Begawan and Belait District (the oil capital) have developed quickly, a clear gap in quality of life still exists between Brunei’s urban hubs and its rural villages tucked in the country’s interior. Moving forward, Brunei must decide how to walk the line between preserving its interior indigenous cultures (like Kampong Ayer, world’s largest water village) and “modernizing” infrastructure. The challenge will be to improve the overall quality of life without stripping the unique traditions and ways of life that make Brunei and its people one of Southeast Asia’s gems.

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The Brunei Dollar

The Brunei dollar (BND) and Singapore dollar (SGD) are Southeast Asia’s strongest currencies. Brunei and Singapore have a bi-lateral agreement that ties their currencies together. This means BND and SGD are inter-changeable (have the same value) and can both be spent in the other’s country. This is very convenient for business and/or for those traveling between. To learn all about the costs of traveling in Brunei, click here.

*For today’s deals on hotels in Brunei (or any other destination), click here.

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Conclusion

Hopefully you found this guide helpful.

Within a century, the oil and gas industry transformed Brunei into one of Asia’s strongest economies, and this allows the country to maintain the majority of its vast, virgin rainforest - something that neighbor countries have struggled to do. To learn more about Brunei and all it has to offer, explore our other guides below.

Enjoy your travels!

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Here are some 5-star customer rated tours of Brunei, organized by Viator and run by locals!

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Best Way To Find A Hotel In Brunei

Agoda.com is well-known in Brunei (and Southeast Asia) for providing amazing deals on a wide range of accommodation options. You’ll find luxury or budget hotels, resorts, villas, hostels, apartments, guesthouses, bed and breakfasts, and unique/alternative types). Use the widget below or click here to search in Brunei.

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