Brunei is a small, rich oil country in Asia. The country is highly dependent on the hydrocarbon sector, but the oil resources give the country a very comfortable external position and allow the government to be very generous to the local population. As a result, the population has displayed little dissatisfaction with the country’s slow democratization process. The religiously conservative royal family keeps a firm grip on Brunei and little progress is expected. This will be one of the main challenges going forward, especially in light of the extravagant lifestyle that the royal family often displays. Another major challenge is the need for economic diversification.