Chinese, Saudi, Russian interest to invest in BD grows
Muhid Hasan :
Three countries—China, Saudi Arabia, and Russia—have recently expressed a strong interest in investing in Bangladesh, generating excitement among local business leaders.
During a seminar held on April 30, 2024, in Quanzhou City, Fujian Province, about 100 Chinese investors from various organizations and industrial groups expressed their interest in considering Bangladesh as an ideal investment destination amidst the current global geopolitical and economic landscape.
The seminar, titled “Investment Opportunities in the Export Processing Zones and BEPZA Economic Zone of Bangladesh,” was organized by the Bangladesh Export Processing Zones Authority (BEPZA).
Participants, including Chinese public and private sector representatives, policymakers, investors, and bankers, discussed the longstanding friendly relations between Bangladesh and China and explored opportunities offered by the Bangladesh-China partnership.
Similarly, Saudi Arabia has shown increased investment interest. The Kingdom published a list of 80 Saudi companies eager to invest in sectors such as food, fuel, production, and services in Bangladesh.
This was highlighted during a special meeting at the World Economic Forum in Riyadh, where Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister of Bangladesh, met with Saad Alkroud, Secretary General of the Board of Directors of the Saudi Public Investment Fund (PIF).
In December of the previous year, Saudi Investment Minister Khalid A Al-Falih visited Bangladesh with a delegation of businessmen who showed a keen interest in similar sectors, aiming to strengthen trade ties.
Russian investment interest is also on the rise, with recent statements from the Russian envoy emphasizing a desire to diversify mutual interests with Bangladesh.
In February, the Ambassador noted that Bangladesh is Russia’s second-largest trade partner in South Asia after India. In 2023, the trade volume between the two nations exceeded $2.3 billion.
During their interactions, Russian officials expressed a particular interest in sectors such as energy, and in supplying machinery, equipment, and technologies necessary for railway and road construction, building, metallurgy, and other industrial areas.
These foreign investments are stirring enthusiasm among local businesspeople, as they present an opportunity to leverage Bangladesh’s competitive production costs, expansive domestic consumer base, and regional market access.
Bangladesh enjoys duty-free and quota-free (DFQF) market access to key regions including India, the European Union, Canada, Australia, and countries in the Asia-Pacific Trade Agreement (APTA).
Major General Abul Kalam Md Ziaur Rahman, Executive Chairman of BEPZA, highlighted that Bangladesh’s main attraction for investment is its inexpensive, productive, abundant, and easily trainable workforce.
The country has been liberalizing its foreign investment policies since the 1980s and has introduced the “One Stop Service Act” to provide faster and more efficient services through its Investment Promotion Agencies. Rahman also mentioned the ongoing expansion of BEPZA, including the establishment of an Economic Zone in Mirsharai, Chattogram, which has already attracted 28 industries in its development stage, with some having started production. Additionally, the establishment of three new EPZs is underway, expected to be operational by the end of 2025.