Saudi Arabia Offers Major Investments in Bangladesh

Chinese factory Join Win (Bangladesh) Company Limited has announced plans to set up a shoe accessories manufacturing industry in the BEPZA Economic Zone (EZ) with a significant investment of $10.73 million. The agreement was signed with the Bangladesh Export Processing Zones Authority (BEPZA) at the BEPZA Complex, marking a significant milestone for both parties.

Saudi Arabia has offered to make large-scale investments in various sectors of Bangladesh, citing the country's stable government and economic growth. During a meeting with Prime Minister Sheikh Hasina, Saudi Arabian Minister of Investment Khalid A. Al-Faliah and Minister of Economy and Planning Faisal Alibrahim expressed their interest in strengthening relations with Bangladesh.

The Bangladesh Bureau of Statistics (BBS) has secured a funding of $9.65 million from the Korea International Cooperation Agency (KOICA) to enhance its facilities, knowledge sharing, and technology upgrades, as announced by KOICA. The successful completion of the on-site implementation survey for the Capacity Building of Statistics Service based on Platform Project was also revealed.

Chinese company Jibin Technology (BD) has announced a $6 million investment to establish a shoe accessories manufacturing factory in the Bepza Economic Zone (EZ) of Bangladesh. The agreement was signed with the Bangladesh Export Processing Zones Authority (Bepza) to solidify the partnership. The factory will have the capacity to produce six million pairs of shoe accessories annually, including outsoles, midsoles, injection parts, and various components. The project is expected to create employment opportunities for 195 Bangladeshis initially.

Foreign direct investment (FDI) in Bangladesh increased by 20% year-on-year to $3.48bn in 2022, due to a surge in reinvestment of earnings by foreign companies. However, the rise in FDI will not have any significant impact on the economy, since there was a decline in the inflow of equity capital and intra-company loans. This trend has been driven by a shortage of foreign exchange in the banking sector, discouraging foreign investors from bringing in new funds.

According to an estimate by the American Enterprise Institute (AI), a US think tank, the total investment of China in Bangladesh is 7.07 billion dollars. Chinese institutions and organizations have received construction contracts worth 22.94 billion dollars across various sectors in Bangladesh. According to AI data, most of China's $7.07 billion investment in the country came from the power and energy sector, amounting to $3.27 billion.