Since the establishment of the first bank in Brunei Darussalam, the banking industry has assumed its traditional role as a place of safekeeping, investment and clearing of financial transactions. During the 1980s banks served corporations as remittance institutions and Brunei’s window to settle international trade. The late 1990s and early 2000s marked a change of culture in the banking industry where banks were considered as a source of credit, contributing to the growth of personal debt and a source of funds to businesses. This chapter examines the historical development of banking in the country and the rise of Islamic finance in the 1990s. Ideally, Islamic finance, with its strict requirement of syariah compliance, emphasises the relationship between the respective transactions and its economic substance, which influences the economic development of the country significantly. With this premise, the study investigates the opportunities of Islamic financial instruments in contributing to the growth of Brunei’s economy. The movement towards a fair and inclusive financial structure through the offering of Islamic social financial instruments such as waqf and zakat is also scrutinised.