Fuelled by oil and gas revenues, Brunei is one of the world's richest countries. But its reserves are expected to run out in around two decades and the government is desperate to seek ways to diversify its economy and to attract more foreign investment. As Rian Maelzer reports from the Brunei capital, Bandar Seri Begawan, the visit by Chinese President Xi Jinping is a big moment for the small country.

Sandwiched between two Malaysian states on the north coast of Borneo, Brunei is home to around 420-thousand people – about two-thirds of them ethnic Malay Muslims, with 10 percent of Chinese descent.

Brunei's Sultan, Hassanal Bolkiah, also holds the posts of Prime Minister, as well as minister of finance, defence and foreign affairs.

Bruneians pay no income tax, enjoy free, first-rate health care and education, and generous pensions. Nearly two-thirds of Brunei's GDP comes from oil and gas.

RIAN MAELZER BANDAR SERI BEGAWAN, BRUNEI "But for the Last three years Brunei has been in recession due to depressed oil prices and despite many years of effort to try to diversify its economy."

So China's increasing involvement in this country is as timely as it is welcome.

China has become by far the biggest foreign investor, undertaking projects such as this multi-billion dollar refinery complex near the capital. The hope is that President Xi Jinping's visit will add further momentum.

PROF. JATSWAN S. SIDHU BRUNEI SPECIALIST, UNIVERSITY OF MALAYA "For Brunei, apart from enhancing its international profile, the visit is of great significance I would say. We don't really see major powers, leaders from major powers actually visiting Brunei of late so it is in this context that the visit by the Chinese president is of very very much importance to a small state like Brunei."

And people here are encouraged by this rare visit by such a major world leader.

ERIC LIM "Brunei needs more exposure internationally and I hope it increases the chances of more investment in Brunei."

HAJI ALI PIUK "I think it's a good thing from the development perspective, to help boost our economy and progress here."

Brunei only established diplomatic ties with China in 1991. So President Xi's state visit underlines how far bilateral relations have come in that time.

Rian Maelzer, CGTN, Bandar Seri Begawan.