Chinese records from as far back as the 6th century AD show links with a country named ‘Po-ni’, which is possible was Brunei. Following the spread of Islam to the region with Arab traders, Brunei officially became a Muslim state in the 14th century. In the 15th and 16th centuries, Brunei became the dominant power in South East Asia and expanded its territory throughout Borneo and as far as the Philippines. Civil war in the later half of the 17th century began a process of break-up, which accelerated in the 19th century with the ceding of extensive territories on the island of Borneo to the Brookes family (the ‘White Rajahs of Sarawak’).

 

Brunei was placed under British Protection in 1889 and became a full British Protectorate in 1905, with all matters relating to administration, legislation and taxation conducted on the advice of a British Resident. Apart from a short time during the Second World War when the country was occupied by the Japanese, the Residents remained effectively Governors of Brunei until 1959, when the Sultan of Brunei became responsible for the country's internal government, while the UK retained responsibility for Brunei's defence and foreign policy. The present Sultan ascended to the throne when his father, Sultan Sir Omar, abdicated in 1967. In 1971 Brunei ceased to be a British Protectorate, although the UK retained some responsibility for foreign affairs and defence matters until Brunei became a fully sovereign independent state on 1 January 1984.

 

The first oil prospectors arrived in Brunei in the early 1900s and on-shore oil was discovered in 1929, leading to a pre-war oil boom. New fields have been opened up regularly since, both on and offshore. The revenues have allowed Brunei to build up one of the most comprehensive welfare systems in the world.

 

Brunei's economy suffered a shock in 1997 when large losses were discovered in the assets of the Brunei Investment Agency. Since then Brunei has made some efforts to diversify the economy away from its almost total dependency on the oil and gas sectors. The Brunei Economic Development Board was set up in 2002 to identify suitable projects for economic diversification such as methanol production, Islamic finance, halal branding, and ecotourism. But progress has been slow. Brunei is also promoting itself as a tourist destination, capitalizing on its well-preserved rainforest and high-quality hotels and golf courses.

 

In 1998, the Sultan's eldest son, Prince Billah, was formally installed as Crown Prince and heir apparent. Crown Prince Billah was married on 9 September 2004 to Princess Sarah, of Bruneian/Swiss parentage. In May 2005 he was appointed Senior Minister (without portfolio) in the Cabinet. Princess Sarah gave birth to a son, Prince 'Abdul Muntaqim on 17 March 2007.