Print: 02 Nov 2025
Despite five decades of diplomatic relations between Bangladesh and the Kingdom of Saudi Arabia (KSA), bilateral trade potential remains largely untapped due to the lack of proactive initiatives from both the public and private sectors, say the economists.
Experts, however, believe that both countries are now on the right track to unlock new opportunities in trade and investment, as Bangladesh offers a unique mix of growth potential, market access, and competitiveness.
Meanwhile, Saudi Arabia’s Vision 2030 aims to diversify its economy and reduce dependence on oil, creating fresh prospects for partnership.
According to data from the Export Promotion Bureau (EPB), bilateral trade between Bangladesh and Saudi Arabia stood at US$1.98 billion in the 2023-24 fiscal year.
Bangladesh exported goods worth $310.97 million and imported products valued at $1.67 billion. The figures show that bilateral trade was $2.1 billion in FY23 and $1.98 billion in FY22, with trade deficits of $1.51 billion and $1.4 billion, respectively.
Bangladesh’s major exports to Saudi Arabia include ready-made garments (RMG), manpower, and food items, while imports mainly consist of fertiliser, plastics, chemicals, and crude oil. Between 2001 and June 2024, Saudi investment in Bangladesh totalled just $34.09 million, according to Bangladesh Bank data.
Joint collaboration key to unlocking opportunities
Industry insiders and economists highlight that, owing to religious and cultural harmony, vibrant economic activities, and large consumer markets, there is immense potential for trade and investment between the two nations.
They emphasise the need for joint government initiatives to remove trade barriers and promote collaboration.
Dr M Masrur Reaz, chairman of the Policy Exchange of Bangladesh (PEB), underscored the importance of setting strategic priorities to realise the full potential of Bangladesh–Saudi economic ties.
He called for the creation of joint governance structures for effective project monitoring, coordination, and management.
First-ever Saudi-Bangladesh Business Summit held in Dhaka
To strengthen bilateral relations and promote investment, the Saudi–Bangladesh Chamber of Commerce and Industry (SBCCI) organised the first-ever Saudi–Bangladesh Business Summit 2025 in Dhaka.
A 20-member Saudi business delegation led by Shaikh Omar Abdulhafiz Ameerbakhsh attended the event.
Speaking at the summit, Bangladesh Bank Governor Dr Ahsan H Mansur urged Saudi investors to expand their footprint in Bangladesh, describing the country as a rising investment destination in South Asia with a dynamic economy, youthful workforce, and strategic location.
“Investing in Bangladesh can be a strategic and timely decision. Our economy is resilient, growth is steady, and the private sector remains the key driver,” he said.
The central bank governor added that strengthening ties with leading economies of the Islamic world could position Bangladesh as a regional hub for trade and investment. With its economy approaching half a trillion dollars, Bangladesh is steadily advancing toward the trillion-dollar mark.
He also noted that Saudi Arabia is the largest source of remittances for Bangladesh, stressing the need to make remittance transfers more efficient and cost-effective. The governor further called for regular business dialogues to deepen trade relations.
In his remarks, Shaikh Omar Abdulhafiz said, “There is a deep relationship between Saudi Arabia and Bangladesh. We have enormous opportunities to strengthen our partnership in trade and investment. Our government welcomes Bangladesh’s initiatives aligned with Saudi Vision 2030.”
He encouraged Bangladeshi entrepreneurs to share investment ideas through official channels.
Former commerce minister Amir Khasru Mahmud Chowdhury noted that Saudi Arabia’s vast investment funds could play a pivotal role in developing Bangladesh’s capital market, boosting economic growth and bilateral business ties.
Expanding investment horizons
Dr Masrur Reaz identified several sectors in Bangladesh that hold promise for Saudi investors, including green energy, fertilisers, electronics manufacturing, transport and logistics, petroleum and petrochemicals, tourism and hospitality, construction, jute, blue economy, education and skills development, banking, and capital markets.
He also pointed out potential areas for Bangladeshi investment in Saudi Arabia, such as healthcare, food and beverage, construction, and financial services.
However, Masrur cautioned that Bangladesh faces several challenges, including loss of preferential trade access after LDC graduation, port inefficiencies, high tariff barriers, elevated logistics costs, energy inefficiency, land management problems, limited access to credit, and inconsistent regulations.
To address these issues, he recommended targeted policy support, collaboration with Saudi authorities to develop investor-friendly policies, identifying priority sectors, and deploying trade and FDI promotion plans.
He also urged joint infrastructure projects, engagement with Saudi educational institutions for training and job placement, and harmonisation of customs procedures to ease trade.
“Tailored tax and regulatory incentives must be developed in consultation with Saudi investors to make them truly effective and attractive,” he added.
______________________________________________
The reporter can be reached at: [email protected]
Edited by: Anayetur Rahama
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50 years of Saudi Arabia-Bangladesh ties
Experts eye new heights in bilateral trade
They emphasise the need for joint govt initiatives to remove trade barriers
Despite five decades of diplomatic relations between Bangladesh and the Kingdom of Saudi Arabia (KSA), bilateral trade potential remains largely untapped due to the lack of proactive initiatives from both the public and private sectors, say the economists.
Experts, however, believe that both countries are now on the right track to unlock new opportunities in trade and investment, as Bangladesh offers a unique mix of growth potential, market access, and competitiveness.
Meanwhile, Saudi Arabia’s Vision 2030 aims to diversify its economy and reduce dependence on oil, creating fresh prospects for partnership.
According to data from the Export Promotion Bureau (EPB), bilateral trade between Bangladesh and Saudi Arabia stood at US$1.98 billion in the 2023-24 fiscal year.
Bangladesh exported goods worth $310.97 million and imported products valued at $1.67 billion. The figures show that bilateral trade was $2.1 billion in FY23 and $1.98 billion in FY22, with trade deficits of $1.51 billion and $1.4 billion, respectively.
Bangladesh’s major exports to Saudi Arabia include ready-made garments (RMG), manpower, and food items, while imports mainly consist of fertiliser, plastics, chemicals, and crude oil. Between 2001 and June 2024, Saudi investment in Bangladesh totalled just $34.09 million, according to Bangladesh Bank data.
Joint collaboration key to unlocking opportunities
Industry insiders and economists highlight that, owing to religious and cultural harmony, vibrant economic activities, and large consumer markets, there is immense potential for trade and investment between the two nations.
They emphasise the need for joint government initiatives to remove trade barriers and promote collaboration.
Dr M Masrur Reaz, chairman of the Policy Exchange of Bangladesh (PEB), underscored the importance of setting strategic priorities to realise the full potential of Bangladesh–Saudi economic ties.
He called for the creation of joint governance structures for effective project monitoring, coordination, and management.
First-ever Saudi-Bangladesh Business Summit held in Dhaka
To strengthen bilateral relations and promote investment, the Saudi–Bangladesh Chamber of Commerce and Industry (SBCCI) organised the first-ever Saudi–Bangladesh Business Summit 2025 in Dhaka.
A 20-member Saudi business delegation led by Shaikh Omar Abdulhafiz Ameerbakhsh attended the event.
Speaking at the summit, Bangladesh Bank Governor Dr Ahsan H Mansur urged Saudi investors to expand their footprint in Bangladesh, describing the country as a rising investment destination in South Asia with a dynamic economy, youthful workforce, and strategic location.
“Investing in Bangladesh can be a strategic and timely decision. Our economy is resilient, growth is steady, and the private sector remains the key driver,” he said.
The central bank governor added that strengthening ties with leading economies of the Islamic world could position Bangladesh as a regional hub for trade and investment. With its economy approaching half a trillion dollars, Bangladesh is steadily advancing toward the trillion-dollar mark.
He also noted that Saudi Arabia is the largest source of remittances for Bangladesh, stressing the need to make remittance transfers more efficient and cost-effective. The governor further called for regular business dialogues to deepen trade relations.
In his remarks, Shaikh Omar Abdulhafiz said, “There is a deep relationship between Saudi Arabia and Bangladesh. We have enormous opportunities to strengthen our partnership in trade and investment. Our government welcomes Bangladesh’s initiatives aligned with Saudi Vision 2030.”
He encouraged Bangladeshi entrepreneurs to share investment ideas through official channels.
Former commerce minister Amir Khasru Mahmud Chowdhury noted that Saudi Arabia’s vast investment funds could play a pivotal role in developing Bangladesh’s capital market, boosting economic growth and bilateral business ties.
Expanding investment horizons
Dr Masrur Reaz identified several sectors in Bangladesh that hold promise for Saudi investors, including green energy, fertilisers, electronics manufacturing, transport and logistics, petroleum and petrochemicals, tourism and hospitality, construction, jute, blue economy, education and skills development, banking, and capital markets.
He also pointed out potential areas for Bangladeshi investment in Saudi Arabia, such as healthcare, food and beverage, construction, and financial services.
However, Masrur cautioned that Bangladesh faces several challenges, including loss of preferential trade access after LDC graduation, port inefficiencies, high tariff barriers, elevated logistics costs, energy inefficiency, land management problems, limited access to credit, and inconsistent regulations.
To address these issues, he recommended targeted policy support, collaboration with Saudi authorities to develop investor-friendly policies, identifying priority sectors, and deploying trade and FDI promotion plans.
He also urged joint infrastructure projects, engagement with Saudi educational institutions for training and job placement, and harmonisation of customs procedures to ease trade.
“Tailored tax and regulatory incentives must be developed in consultation with Saudi investors to make them truly effective and attractive,” he added.
______________________________________________
The reporter can be reached at: [email protected]
Edited by: Anayetur Rahama