Numerous well-established Saudi companies and investors express strong interest in contributing to diverse sectors of Bangladesh’s economy
Saudi Arabia and Bangladesh have forged a robust economic partnership. Saudi Arabia is one of Bangladesh’s top trading partners in the Middle East. This economic cooperation has been bolstered by investments in infrastructure projects, creating jobs and boosting economic growth in Bangladesh.
Over the past five years, relations between Bangladesh and Saudi Arabia have deepened, and Saudi investment in Bangladesh has notably increased. This economic success has extended Saudi Arabia’s perception of Bangladesh, moving beyond religious reflections to view it as a highly attractive investment opportunity.
On May 23, 2023, Saudi Arabia’s Minister of Investment, Khalid A Al-Faliah, and Minister of Economy and Planning, Faisal Alibrahim, extended an offer during their meeting with Prime Minister Sheikh Hasina. They aim to position Bangladesh as a regional hub, given its strategic location connecting South and South-East Asia. Sheikh Hasina, in response, offered Matarbari and Paira Sea ports and economic zones for mutual benefits.
DCCI and RCC Sign MoU
To this effect, the Dhaka Chamber of Commerce and Industry (DCCI) and the Riyadh Chamber of Commerce (RCC) recently signed a memorandum of understanding (MoU) in city of Riyadh. The signing of this MoU demonstrates a shared commitment to foster more extensive bilateral business cooperation between the two countries, ultimately benefiting both nations economically.
DCCI President Barrister Md Sameer Sattar and RCC Vice-Chairman Naif Abdullah Al Rajhi signed a MoU in a ceremony attended by dignitaries and business leaders at the RCC premises. The event included 120 B2B matchmaking meetings between Bangladeshi and Saudi businessmen. Mr. Sameer’s visit to Saudi Arabia led the largest-ever private-sector business delegation from Bangladesh, comprising 61 companies eager to explore economic opportunities. Mr. Rajhi highlighted the remarkable progress Bangladesh has made in terms of trade and commerce in recent years. Both nations are poised for economic transformation and diversification of resources, with Saudi Arabia looking forward to potential investments from Bangladesh.
Bangladesh’s Economic Resilience and Growth
Conversely, Mr. Sameer, President of DCCI, acknowledged Saudi Arabia’s enormous potential for Bangladeshi businesses. He noted that the signing of the MoU between DCCI and RCC would further solidify bilateral business cooperation in the days to come.
Proudly, Mr. Sameer mentioned, “We feel proud to see our products here in Saudi Arabia, which are made in Bangladesh.” Bangladesh’s remarkable resilience and economic transformation in the last decade have been noteworthy, and its upcoming transition to a middle-income country in 2026 necessitates not just market diversification but also product diversification.
The delegation accompanying Mr. Sameer comprises investors from various sectors, with a particular focus on-
- Information Technology (IT)
- agriculture,
- infrastructure
- real estate,
- energy and power
- tourism and hospitality
- education.
This diversity highlights the intention to explore and tap into different facets of the Saudi market.
Current Bilateral Trade
The current annual bilateral trade between the two nations stands at $2 billion, but the potential for growth and expansion is immense. This agreement is expected to pave the way for further economic collaboration, leading to increased trade and investments.
Mr. Sameer extended a warm invitation to Saudi entrepreneurs, particularly in smart farming, IT, fintech, logistics, and infrastructure sectors in Bangladesh. This reflects the eagerness to welcome Saudi investments and foster fruitful partnerships.
Bangladesh Exports $488M to Saudi Arabia, Imports $1.13B in 2021
In 2021, Bangladesh exported $488M to Saudi Arabia. The main products exported from Bangladesh to Saudi Arabia were Knit T-shirts ($83.6M), Non-Knit Men’s Suits ($44.5M), and Non-Knit Women’s Suits ($41.9M). During the last 26 years the exports of Bangladesh to Saudi Arabia have increased at an annualized rate of 17.1%, from $8.06M in 1995 to $488M in 2021.
Bangladesh-Saudi Arabia Trade in 2021
| Export from Bangladesh to Saudi Arabia] |
| Knit T-shirts: $83.6 million |
| Non-Knit Men’s Suits: $44.5 million |
| Non-Knit Women’s Suits: $41.9 million |
| Export Growth Rate (1995-2021): 17.1% |
| 1995: $8.06 million |
| 2021: $488 million |
| No Services Exported from Bangladesh to Saudi Arabia in 2021 |
In 2021, Saudi Arabia exported $1.13B to Bangladesh. The main products exported from Saudi Arabia to Bangladesh were Nitrogenous Fertilizers ($303M), Mixed Mineral or Chemical Fertilizers ($156M), and Ethylene Polymers ($145M). During the last 26 years the exports of Saudi Arabia to Bangladesh have increased at an annualized rate of 14.3%, from $35.1M in 1995 to $1.13B in 2021.
Saudi Arabia-Bangladesh Trade in 2021
| Exports from Saudi Arabia to Bangladesh |
| Total Exports: $1.13 billion |
| Nitrogenous Fertilizers: $303 million |
| Mixed Mineral or Chemical Fertilizers: $156 million |
| Ethylene Polymers: $145 million |
| Export Growth Rate (1995-2021): 14.3% |
| 1995: $35.1 million |
| 2021: $1.13 billion |
| No Services Exported from Saudi Arabia to Bangladesh in 2021 |
In 2021, Bangladesh and Saudi Arabia had different rankings in the Economic Complexity Index (ECI) and total exports. Here’s a comparison of their positions:
Economic Complexity Index (ECI):
| Bangladesh: Ranked 101 with an ECI of -0.85. |
| Saudi Arabia: Ranked 31 with an ECI of 0.9. |
| Total Exports: |
| Bangladesh: Ranked 56 with total exports of $51.8 billion. |
| Saudi Arabia: Ranked 26 with total exports of $256 billion. |
