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Today, we are exploring Brunei Darussalam — a small Islamic country in Southeast Asia that covers an area of just around 6,000 square kilometers, yet ranks among the richest nations in the world. Despite its small size, Brunei enjoys one of the highest standards of living globally. Citizens pay no personal income tax, healthcare and education are completely free, and the overall quality of life is remarkably high.
However, Brunei is not famous only for its wealth. The real reason this country attracts global attention is its political system. Brunei is one of the very few countries in the modern world that still operates under a complete absolute monarchy. Here, all state power rests in the hands of a single ruler — the Sultan.
Brunei Darussalam officially gained independence from the United Kingdom on January 1, 1984. It is located on the island of Borneo, with the rest of the island shared by Malaysia and Indonesia. In terms of human development, Brunei ranks second in Southeast Asia after Singapore. According to international financial reports, Brunei consistently ranks among the top five countries in the world in purchasing power per capita.
The History of Brunei’s Monarchy
Brunei has been ruled by a monarchy for centuries. Between the 15th and 17th centuries, the Bruneian Empire was at its peak, extending from northern Borneo to parts of the southern Philippines. During the 19th century, the empire began to decline, and in 1888 Brunei came under British protection.
Even under British influence, the royal family retained significant authority. After independence in 1984, Sultan Hassanal Bolkiah assumed full control of the country and also took on the role of Prime Minister. He has ruled Brunei since 1967 and is currently the 19th Sultan of Brunei, making him one of the longest-serving monarchs in the world.
Unlike constitutional monarchies such as the United Kingdom or Japan, Brunei’s monarchy is not symbolic. The Sultan holds absolute power. He serves simultaneously as Prime Minister, Minister of Finance, Minister of Defense, and Minister of Foreign Affairs. There are no national elections, and political power is not shared with an elected parliament.
Absolute Power and Royal Wealth
Legally and practically, Sultan Hassanal Bolkiah has the authority to make any decision without parliamentary approval. Constitutional amendments in 2006 further strengthened royal authority. He also holds honorary ranks in the British Royal Navy and Royal Air Force.
The Sultan’s personal wealth is estimated at nearly 30 billion US dollars, placing him among the richest individuals on Earth. His royal palace, Istana Nurul Iman, is the largest residential palace in the world. Built over an area of approximately 200,000 square meters, it contains 1,788 rooms, 257 bathrooms, a banquet hall that can seat 5,000 guests, extensive parking facilities, multiple swimming pools, and a mosque that can accommodate 1,500 worshippers.
In addition to the palace, the Sultan owns numerous luxury properties worldwide. His car collection includes thousands of luxury vehicles, including gold-plated Rolls-Royces, Ferraris, Bentleys, Bugattis, and McLarens. He also owns private jets decorated with gold interiors. Reports claim that even a routine haircut for the Sultan can cost around 20,000 US dollars.
The Economic Secret Behind Brunei’s Wealth
Brunei was not always wealthy. Until the early 20th century, the country struggled economically. The turning point came in 1929, when vast reserves of oil and natural gas were discovered. This discovery completely transformed Brunei’s future.
International energy companies began operating in Brunei, and oil exports rapidly strengthened the economy. However, progress was briefly halted during World War II, when Japan occupied Brunei. During the occupation, trade collapsed, the local currency was replaced, and Japanese language education was imposed.
After Japan’s defeat in 1945, Brunei’s development resumed. By the 1970s, oil and gas revenues had pushed the country into rapid economic growth. Today, Brunei produces around 180,000 barrels of oil per day and is Southeast Asia’s third-largest oil producer.
According to economic data, nearly half of Brunei’s GDP comes from oil and gas exports. In 2021, Brunei’s per-capita GDP was approximately $32,500, compared to around $1,500 in Pakistan. This explains the exceptional quality of life enjoyed by Brunei’s citizens.
Life of Ordinary Citizens
The government provides free land, subsidized housing, affordable vehicles, free education, and free healthcare. Books, transport, and hostels are also free. If a citizen needs medical treatment or education abroad, the government covers all expenses.
Food prices are low, crime rates are minimal, and literacy stands at an impressive 98 percent. Alcohol is banned under Islamic law, and the country strictly follows Sharia-based regulations.
Criticism and Controversies
Despite economic prosperity, Brunei faces criticism from international media and human rights organizations. Critics argue that Brunei lacks freedom of speech, political rights, and democratic representation. Royal family spending is often highlighted as excessive, especially given the stark contrast between royal luxury and average citizen life.
A significant portion of national wealth is believed to be controlled by the royal family. The Sultan has five sons and seven daughters. One of them, Prince Abdul Mateen, is a global celebrity with millions of social media followers and is known for his luxurious lifestyle.
The Sultan’s brother, Prince Jefri Bolkiah, was accused of misappropriating around $15 billion and reportedly owns hundreds of luxury properties, thousands of cars, and multiple private jets.
Final Thoughts
Despite criticism, the royal family remains popular within Brunei, largely due
FAQ
Q1: Is Brunei a democracy?
No. Brunei is an absolute monarchy where all political power is held by the Sultan. There are no national elections.
Q2: Why is Brunei so rich?
Brunei’s wealth comes primarily from large oil and natural gas reserves discovered in 1929.
Q3: Do people pay taxes in Brunei?
No. Citizens do not pay personal income tax, and most essential services are free.
Q4: Who is the ruler of Brunei?
Sultan Hassanal Bolkiah, the 19th Sultan of Brunei, has ruled since 1967.
Q5: Is Brunei an Islamic country?
Yes. Brunei follows Islamic law, and Sharia-based regulations are implemented nationwide.
REFERENCES
https://en.wikipedia.org/wiki/Brunei
https://en.wikipedia.org/wiki/Hassanal_Bolkiah
https://en.wikipedia.org/wiki/Economy_of_Brunei
https://en.wikipedia.org/wiki/Istana_Nurul_Iman
https://en.wikipedia.org/wiki/Politics_of_Brunei