Relationship between the two countries is deep-rooted and outstanding, based on a strong foundation of religious and cultural ties
Essa bin Yousef Al Duhailan, the Ambassador of the Kingdom of Saudi Arabia to Bangladesh, has expressed the view that Bangladesh is rapidly emerging as an economic powerhouse in Southeast Asia. He emphasized Saudi Arabia’s strong desire to explore investment opportunities across various sectors within Bangladesh.
“Numerous renowned Saudi corporations and investors have displayed a keen interest in contributing to various sectors of Bangladesh’s economy.”
Ambassador Essa bin Yousef Al Duhailan
In his message commemorating the 93rd Saudi National Day
The Saudi Embassy is scheduled to celebrate this occasion in Dhaka on the 26th of September, although the official Saudi National Day falls on the 23rd of September.
Last year, ambassador of the Kingdom of Saudi Arabia to Bangladesh, Mr. Essa Yousef Essa Al Duhailan expressed satisfaction with the state of excellent bilateral relations between Bangladesh and Saudi Arabia, which had been growing rapidly in various fields, including political, economic, defense, manpower, business, trade, and investment.
Investment Opportunities in Bangladesh
Ambassador Al Duhailan emphasized the interest of numerous renowned Saudi companies and investors in exploring investment opportunities in Bangladesh. The Kingdom of Saudi Arabia recognizes Bangladesh as an emerging economic power in Southeast Asia and is eager to be a part of its growth story. These investments are expected to contribute significantly to the economic development of Bangladesh, creating jobs and fostering innovation.
Furthermore, Saudi Arabia has provided financial assistance for a wide range of projects in Bangladesh, including the construction of houses, schools, mosques, orphanages, and disaster shelters. The establishment of hospitals, bridges, and power plants has also been facilitated through this financial support. Such initiatives not only boost infrastructure but also enhance the overall living standards of the Bangladeshi population.
Strengthened Ties Through Diplomacy
The diplomatic and bilateral connections between Bangladesh and Saudi Arabia are known as Bangladesh-Saudi Arabia relations. While the early stages of this relationship faced some challenges, it has since evolved into a robust and constructive partnership. Given Bangladesh’s status as a Muslim-majority country, it places significant emphasis on its relationship with Saudi Arabia, as it is the birthplace of Islam. Both nations are active members of the Organisation of Islamic Cooperation (OIC), and Saudi Arabia is home to a substantial portion of the worldwide Bangladeshi expatriate community.
One of the pillars of the Saudi-Bangladesh relationship is the strong foundation of religious and cultural ties. Saudi Arabia has long been considered the heart of Islam, and Bangladesh, with its predominantly Muslim population, shares a deep affinity for the Kingdom. Ambassador Al Duhailan highlighted the love and respect the Bangladeshi nation holds for Islam and Saudi Arabia, reinforcing the importance of this relationship.
Bangladesh-Saudi Military Diplomacy
The relationship between Bangladesh and Saudi Arabia began in 1975 when Saudi Arabia formally recognized Bangladesh’s sovereignty. Since then, the two countries have fostered a strong friendship focused on mutual understanding and cooperation. High-level official visits have played a significant role in developing their bilateral relations.
In 2018, they conducted their first joint military exercise, ‘Gulf Shield-1,’ hosted by Saudi Arabia, involving 24 countries, including the US and UK. This exercise aimed to enhance military cooperation and was attended by Bangladesh’s Prime Minister, Sheikh Hasina, strengthening their ties.
This joint military effort signifies Bangladesh’s commitment to strengthening relations with Saudi Arabia. In an evolving global landscape, these strong ties are expected to play a crucial role in the Muslim world.
The Saudi Ambassador reaffirmed his country’s commitment to standing beside Bangladesh and extending assistance, especially during times of hardship or disasters. This gesture of solidarity underlines the enduring friendship and cooperation between the two nations.
Supporting Bangladeshi Workers
Saudi Arabia plays a crucial role in supporting the livelihoods of millions of Bangladeshi expatriates who work in various sectors within the Kingdom. Saudi Arabia is recognized as one of the largest labor markets in the world, and the contributions of Bangladeshi workers are invaluable. These migrant workers send remittances back to their families in Bangladesh, which significantly contribute to improving living standards and economic stability in the country.
Saudi Arabia holds the top spot as the most desirable destination for Bangladeshi expatriates. Over the period spanning from 1976 to 2021, Bangladesh dispatched a substantial 4.581 million migrant workers to the Kingdom, constituting nearly 34 percent of the nation’s total workforce exports. Even in the challenging circumstances of 2020, when most labor markets around the world were closed due to the pandemic, Saudi Arabia engaged more than 160,000 Bangladeshi laborers.
In the preceding year, Bangladesh sent abroad over 600,000 migrants, with a significant 460,000, approximately 76 percent, choosing Saudi Arabia as their destination. Over the past five years, Saudi Arabia has ascended as the preferred choice for Bangladeshi migrant laborers. As the wealthiest nation in the Gulf region, Saudi Arabia is actively executing a range of large-scale projects under its Vision 2030 initiative. With the right measures taken during upcoming discussions, this development could potentially enhance Saudi Arabia’s appeal as a prime employment destination for Bangladeshis.
Bangladesh is on the path to graduation from the Least Developed Country (LDC) category by 2026. Following this transition, Bangladesh will lose access to numerous preferential trade benefits that are exclusively available to LDCs in the global trade arena. This limited access to preferential privileges may have adverse consequences for Bangladesh’s balance of payments, particularly impacting its overall export earnings. To address these challenges, Bangladesh may engage in negotiations with Saudi Arabia to secure continued duty-free access to the Saudi market, even after its graduation from the LDC group.
Saudi Arabia’s Vision-2030
Bangladesh ready to prepare to communicate its willingness to collaborate with KSA in realizing its “Vision-2030.” This collaboration can encompass various areas such as labor force, trade, investments, agriculture, and education. Additionally, for Bangladesh to achieve its own “Vision-2041,” it requires Saudi Arabia’s substantial involvement and economic cooperation. Beyond official state visits, the engagement of economic and investment delegations, as well as cultural and defense cooperation, can play a pivotal role in elevating the bilateral relationship to new heights. Emphasizing greater economic engagement is key during the upcoming visit, as it has the potential to fundamentally transform the overall dynamics of the relationship between these two nations in the future.
In Conclusions
Over the past five decades, Bangladesh has undergone remarkable economic growth, transforming itself into a thriving financial and industrial hub in South Asia. According to the World Bank, Bangladesh stands among the world’s fastest-growing economies, bolstered by its continuous expansion in ready-made garment exports, demographic advantages, and stable macroeconomic stability.
This economic success has broadened Saudi Arabia’s perception of Bangladesh, moving beyond religious considerations to view it as a highly attractive investment opportunity. Consequently, Saudi Arabia has emerged as one of Bangladesh’s most dependable bilateral development partners, with the nature of their relationship evolving from a single-dimensional association to encompass diverse and multi-faceted cooperation initiatives over time.
