Brunei Investment Agency

What Is the Brunei Investment Agency?

The Brunei Investment Agency (BIA), established in 1983, is a government-owned investment organization that holds and deals with the country of Brunei's general reserve fund and its outside assets.

The country of Brunei-the full name is Brunei Darussalam, which in Arabic means "Home of Peace"- is situated on the northwestern edge of the island of Borneo. Brunei is an oil-rich country and a colossal exporter of energy resources: oil and gas account for very nearly 90 percent of Brunei's exports, and 90% of government revenue. Subsequently, the funds saved with the BIA are basically surplus revenues from Brunei's oil exports as foreign reserves, which the Brunei Investment Agency oversees by means of a sovereign wealth fund (SWF). In 2018, the Brunei Investment Agency had around $170 billion in assets under management (AUM), as per the U.S. State Department.

Grasping the Brunei Investment Agency (BIA)

The Brunei Investment Agency (BIA) works basically as the central bank in the country. As with most SWFs, the Brunei Investment Agency was made to control Brunei's general reserve funds, develop its outside holdings, expand its revenue base, and hedge export revenues from energy and commodity price volatility.

One more objective of the Brunei Investment Agency's sovereign wealth fund is to aggregate savings for people in the future, as energy resources are considered draining assets that shrink to zero over the long run. Brunei's economy is intensely tons of crude oil and natural gas; it depends on hydrocarbon revenues for around 60% of its gross domestic product (GDP). Yet, these resources create just a small part of the country's employment, as a large portion of the population turns out straightforwardly for the government.

Brunei is a government. Here, the royal institution of rulers, the title of Muslim sovereigns, has been in place since the fourteenth century. What's more, since Brunei's independence from British rule in 1984, just a single king has ruled, His Majesty, the Sultan Hassanal Bolkiah.

The Sultan is the head of state and absolute ruler of Brunei, using almost absolute power. The Sultan fills in as his own prime clergyman, pastor of defense, foreign endlessly clergyman of finance. He is exhorted by several councils, which he selects. The way that the Sultan, in his capacity as prime pastor, is head of the government means that the Sultan is likewise the ultimate ruler of the Brunei Investment Agency. His Majesty, the Sultan Hassanal Bolkiah has been positioned as perhaps of the wealthiest person in the world. Also, after Queen Elizabeth II, the Sultan is the world's second-longest-ruling current ruler.

Since there is really no regulatory oversight in this small nation, there is minimal public information about the BIA's governance, assets, investment strategy, or its long-term objectives for the country of Brunei. Besides, the agency is exceptionally cryptic. For instance, the Brunei Ministry of Finance's website for the Brunei Investment Agency offers just its hours of operation and an email address for business requests. In spite of the agency's continuous haziness, we in all actuality do know that, aside from investments inside Brunei, BIA's portfolio contains assorted holdings in bonds, equities, currency, gold, and real estate; and that it has substantial investments in the United States.

In 1985, Brunei investors purchased The Dorchester, on Park Lane, in London for $50 million. In 1996, BIA formed "Dorchester Collection," a conglomerate of luxury lodgings in the UK, U.S. France, and Italy whose core is The Dorchester. Brunei Investment Agency likewise possesses The Beverly Hills Hotel in Los Angeles, which the agency purchased in 1987 for $185 million. Other real estate holdings incorporate the Grand Hyatt Singapore. In June 2018, BIA acquired 6.6% of London-recorded Draper Esprit PLC, a private equity and venture capital firm, for \u00a320 million. The agency likewise possesses a 10% stake in Patersons Securities Limited of Australia, and Bahagia Investment Corporation of Malaysia.

Features

• The Brunei Investment Agency (BIA), established in 1983, is a government-owned investment organization that holds and deals with the country of Brunei's general reserve fund.
• Brunei Investment Agency was made to control Brunei's general reserve funds, develop its outside holdings, expand its revenue base, and hedge export revenues from energy and commodity price volatility.
• In 2018, the Brunei Investment Agency had around $170 billion in assets under management (AUM), as per the U.S. State Department.