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Diversification helping to reshape the economy and open doors to investment
Targeted diversification, rising non-oil exports and a strong digital push are helping Brunei reduce reliance on hydrocarbons and attract foreign investment
- PUBLISHED: Mon 16 Feb 2026, 10:32 AM
Over the last decade, there has been a unified effort to diversify Brunei’s economy away from a reliance on the oil and gas sector. During that time period, progress has been made and the structure of the economy has begun to shift, thanks to targeted policies aimed at reducing the reliance on energy prices and creating economic resilience.
Now the non-oil and gas sector has grown to account for more than half of GDP, a transformation that has been driven by growth in downstream industries such as petrochemicals and fertilizers, alongside the development of new sectors including food manufacturing, tourism and information and communication technology (ICT).
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Efforts have also been made by the government to attract foreign investment, support small and medium enterprises and expand digital infrastructure. While these have helped to broaden economic activity, the oil and gas industry remains central to public finances and new alternatives are being explored as Brunei looks to continue the rise of non-energy sectors.
"Ten years ago, non-oil exports were just 10 per cent of total exports. Today, they account for nearly 60 per cent and are approaching 70 per cent. Unemployment has also dropped sharply from 9 per cent to 4.7 per cent over the last eight years, and inflation has remained stable, averaging around 1 per cent annually," outlined Dato Dr. Amin Liew Abdullah, Minister at The Prime Minister’s Office and Minister of Finance and Economy II.
"Non-oil and gas sectors have grown steadily at about 4.2 per cent per year, reflecting the success of our diversification efforts. This has focused on five priority sectors: downstream oil and gas, tourism, ICT, services and food, while remaining open to proposals in other areas.
"These areas have already made a significant impact on our economy, but our work is not done. There are still many opportunities to advance our five priority sectors, and potentially explore others over time. Expanding these areas further will have a substantial effect on our economic growth."
These diversification efforts have also helped to attract investment as there are clearer growth opportunities beyond the oil and gas sector. Large-scale downstream projects such as petrochemicals and fertilizer production have also demonstrated the government’s willingness to support capital-intensive ventures.
"Many international investors, including those from the Middle East, are now exploring opportunities here and often find Brunei a highly conducive place to invest," said Dato Dr. Amin.
At the same time, the focus on sectors such as food manufacturing and ICT has allowed Brunei to tap into regional and global demand, giving investors greater confidence that the country is building a broader, more resilient economic base.
"Brunei offers investors a unique and efficient environment,” he said. "Many international investors, including those from the Middle East, are now exploring opportunities here and often find Brunei a highly conducive place to invest. We have seen growth beyond the downstream industry, including the food sector and farming sector, as well as in aquaculture activities. We have also formed joint ventures with foreign investors in the marine sector, ICT and artificial intelligence (AI)."
Another major focus of the government over the last decade has been transitioning towards the digital economy. This has led to major investment in nationwide digital infrastructure, including the expansion of e-government services and supporting tech-driven businesses and startups through targeted incentives and policies.
“We recognised that the digital economy was inevitable in our region, so we began upgrading network connectivity around eight years ago,” explained Dato Dr. Amin. “Today, more than 90 per cent of the population has 5G coverage, with nearly 99 per cent on 4G. Our mobile download speeds have even ranked fifth globally at one point. Good connectivity lays the foundation for digital payments and new applications.
“To support innovation, we established the Brunei Innovation Lab in 2021, where entrepreneurs can develop and test products, many already using AI in areas like aquaculture. We focus on providing the infrastructure and environment to help these innovations thrive.
“The government has also adopted many digital solutions, including digital IDs. Our payment systems are all very much digitalised. Brunei’s own National Single Window is also linked with other Asean (Association of Southeast Asian Nations) countries, creating a seamless regional trade platform.”
While much has already been achieved in the last 10 years, economic diversification remains a priority for Brunei and the government plans to continue exploring new sectors and attracting investment.
“We welcome investors from the Middle East to explore opportunities in Brunei. With shared culture and religion, we aim to make visits seamless. We have an open-door policy and strive to facilitate projects, helping investors understand the environment and potential here,” said Dato Dr. Amin.
“When it comes to the future, we will continue to prioritise welfare, healthcare and environmental protection. At the same time, we are preparing for the future economy, focusing on AI, climate change and digitalisation to ensure Brunei remains adaptable and competitive. We also aim to ensure people gain experience to adapt to a changing economy. While jobs today may evolve due to global trends, investing in skills and education is key.”
