Labuan International Business and Financial Centre (Labuan IBFC) is seeing growing interest from Middle Eastern institutions and wealthy investors seeking access to ASEAN, as assets across the jurisdiction reached US$94 billion in 2025, Chief Executive Officer Ben Quah said.
According to Quah, the Middle East is becoming an increasingly important source of new interest for Labuan IBFC, particularly among institutions, high-net-worth individuals and ultra-high-net-worth investors looking for a gateway into ASEAN.
“At the same time, demand continues from Greater China, Hong Kong, Singapore and Japan, including companies expanding into Southeast Asia and making use of Labuan’s captive insurance and risk-management structures.
“Overall, ASEAN and the broader Asia-Pacific region remain the strongest sources of investment momentum, complemented by increasing interest from the Middle East,” Quah said to BusinessToday.
He shared that the international financial centre was home to nearly 5,000 operating companies from more than 100 countries last year, with about 60% based in Asia-Pacific. Incorporations grew by more than 5%, while capitalisation reached US$22.5 billion.
“Geopolitical uncertainty and trade fragmentation were changing how investors assess jurisdictions, with greater emphasis now placed on stability, regulatory certainty and the ability to operate across borders,” Quah said, while highlighting that Labuan IBFC’s broader proposition centres on its mid-shore structure, which combines international connectivity with regulatory oversight and operational flexibility.
Its ecosystem spans banking, insurance, leasing, capital markets, wealth management and digital financial services, while Labuan FSA acts as the single statutory authority overseeing entities operating in the jurisdiction.
Islamic Finance And Wealth Management Gain Momentum
The Middle East interest is also feeding into Labuan’s Islamic finance and wealth-management segments where Islamic financing rose 23.4% to US$1.65 billion, while Islamic banking assets increased 35.2% to US$2.2 billion, driven largely by Islamic banking window operations.
Quah said Labuan is seeing growing demand from Middle Eastern institutions, family offices and investors for Shariah-compliant structures covering wealth preservation, investment and access to Asia-Pacific opportunities.
“Foundations, trusts and investment vehicles are being used for cross-border wealth management and succession planning, while Labuan IBFC is also developing Shariah-compliant digital finance through the Islamic Digital Asset Centre and the RAMZ tokenisation framework for real-world assets,” he shared.
The wealth-management segment has also expanded more broadly, with foundation registrations rising 29% in 2025 and foundation assets under management reaching US$802 million.
Digital Finance Builds Another Growth Pillar
Digital financial services are another major area of focus. Labuan ranks second in ASEAN for fintech after Singapore in the Global Financial Centres Index 39, according to Quah.
Its digital finance ecosystem currently spans digital banking, payment systems, money broking and exchanges, including three digital banks and 19 payment system operators.
Quah shared that Labuan IBFC is targeting further growth in areas including asset tokenisation, securities token offerings, digital custody and blockchain-based financial solutions.
Hence, over the next five years, Quah expects continued expansion in tokenised assets, institutional digital custody and digital wealth solutions.
New Five-Year Blueprint To Set Next Growth Phase
Labuan FSA is now developing a new five-year blueprint as its existing Strategic Roadmap 2022-2026 approaches completion.
Quah said more than 95% of initiatives under the current roadmap have been delivered, providing the base for the next phase of Labuan IBFC’s development as a regional financial centre.
The forthcoming blueprint will revolve around four main priorities.
First, Labuan IBFC plans to deepen its position in Islamic and digital finance, including further development of the Islamic Digital Asset Centre and the Shariah-Compliant Blockchain Hub Masterplan. The initiatives are intended to support growth in tokenisation, digital banking and Shariah-compliant financial products.
Second, the centre intends to strengthen its position in captive insurance and risk management. Labuan is already Asia’s second-largest captive insurance domicile, with more than 70 captive licensees and US$726 million in captive premiums in 2025.
Third, the blueprint will target expansion of the wealth-management and private-client ecosystem, particularly as demand increases for wealth preservation, succession planning and family-office structures.
The fourth priority will be sustainable finance, with Labuan looking to connect cross-border capital more directly with economic activity and investment opportunities in Southeast Asia.
Quah emphasised that the new blueprint is expected to provide the policy direction for these priorities once the existing roadmap concludes, with Labuan IBFC seeking to strengthen its position as a gateway for cross-border capital, digital finance and Islamic financial services in Asia.
