Trade with China and India dates back at least 2000 years. Islam was brought to the region from South India in the early 1400s. A century later, the first European explorers arrived.
In the 16th century, Brunei was an important trading centre and a regional power, and its influence spread as far afield as the central Philippines. But by the 19th century, the sultanate was in decline, opening the way for the British to wrest control of the Malaysian states of Sarawak and Sabah from the sultan. Brunei itself became a British protectorate in 1888.
Oil, discovered in the Seria area in the 1920s, changed Brunei forever. It was black gold that helped fuel Japanese interest in Borneo during World War II, and in the early 1960s oil made it economically advantageous for Brunei to remain outside newly-created Malaysia.
Sultan Haji Hassanal Bolkiah, the country's current absolute ruler and one of the world's richest people, became Brunei's 29th sultan in 1967. He rules under a national philosophy known as Malay Islamic Monarchy, which promotes Islamic traditions and values and loyalty to the sultan. The activities of political parties are severely restricted.
Brunei became self-governing, except in foreign affairs and defence, in 1971 and became fully independent from Britain in 1984. The country maintains close military, economic and cultural ties with the UK.
Islam is the official state religion of Brunei, and about two-thirds of Bruneians are Muslims. Buddhists (mainly Chinese) make up about 13% of Brunei's population; Christians are 10%.
Social conventions:Visitors should dress modestly. Shoes must be removed when entering mosques and Muslim homes. Some Bruneians do not shake hands with people of the opposite sex. It is impolite to point with the index finger (the right thumb should be used instead). Food may be served without cutlery: eat using the right hand only. It is widely regarded as discourteous to refuse refreshments or to eat in public during Ramadan.
Visitors should note that there are severe penalties for all drug offences, and that the legal system in Brunei is partly based on Shariah law and can, occasionally, apply to non-Muslims, including visitors. Dress is informal except for special occasions. Women should ensure that their head, knees and arms are covered.
Malay is the official language. English is widely used and Chinese dialects are also spoken.