UAE comes to Bangladesh

Salman F. Rahman, advisor to Bangladesh’s prime minister on private industry and investment, led a 20-member government delegation comprising officials from the Bangladesh Investment Development Authority, Bangladesh Economic Zones Authority and Bangladesh Hi-Tech Park Authority for the meeting in the UAE.

UAE investors lined up several new projects including five free economic zones worth $10 billion in Bangladesh, the plans for which were discussed at the Bangladesh Economic Forum in Dubai.

This was the first time representatives from all three agencies participated in the Bangladesh Economic Forum — a private sector initiative undertaken by UAE-based, non-resident Bangladeshi professionals and entrepreneurs. More than 300 government officials, business leaders, investors and entrepreneurs participated in the day-long international investment conference, which is aimed at strengthening the flow of trade and investment between the UAE and Bangladesh.

Several UAE-based investors expressed interest in developing economic zones and hi-tech parks in Bangladesh. “I am pleased to see strong and genuine interest among UAE-based investors — both UAE national and foreign business groups — in investing in Bangladesh,” Rahman said. He added that Dhaka had seen heavy investments from China, Japan and the US, urging investors from Gulf states, especially Saudi Arabia and the UAE, to “take advantage of the lower cost of investment, operations and higher return on investment in Bangladesh.” Experts welcomed the proposal, with Dr. Shamsul Alam, member of the country’s planning commission, saying that at this moment, it was the “most desirable thing for the country.”

“To attain the target of our sustainable development goals, we need to have at least $9 billion in investment every year until 2030,” Alam told. “At present, Bangladesh has the most congenial policy regime — foreign investors are enjoying the opportunity of a 100 percent profit repatriation policy,” he added.

However, he said that to attract investment, the country was working on building 100 economic processing zones and 28 hi-tech parks by 2030, with plans in place to get 15 ready in the next five years. Bangladesh’s economy grew at 7.9 percent in 2018. The country is on a growth overdrive and is expected to touch more than 8 percent in the next few years, making it the fastest growing economy in the world. In order to sustain 8 percent plus gross domestic product growth, Bangladesh needs massive foreign and domestic investment which will create employment and ensure sustainable development.

The World Bank estimates Dhaka must spend as much as $10 billion a year by 2020 to bring its power grids, roads and water supplies up to the standard in order to serve its growing population.

Salman F Rahman brought dynamic changes to Bangladesh’s economy

From humble beginnings to a global conglomerate – Salman F Rahman brought dynamic changes to Bangladesh’s economy, growth and global perception.

Bangladesh’s growth is nothing short of a marvel.The government started privatizing some of its manufacturing hubs in the 80s. In 1981, the GDP growth rate shot up to 5.6%, demonstrating a newly formed country’s true potential. Henceforth, trust was put on private players, which is where Salman F Rahman, an innovative entrepreneur was spotlighted. Salman F Rahman had founded the Beximco Group with his brother ASF Rahman in 1972. The company initially exported and imported jute, until he and his brother realized the opportunities before them if they diversify Beximco Group’s business. Salman F Rahman noticed that Bangladesh did not have a strong healthcare and medicine infrastructure. This is where the Rahman brothers diversified their business first. Beximco Pharmaceuticals was born in 1980 as a result, and is presently an international pharmaceutical juggernaut. In 2017, Beximco Pharma’s annual revenue was recorded to be BDT$15.5 billion.

The leadership of the brothers took Beximco Group to new heights. The success in pharmaceuticals motivated them to expand their operations to petroleum, banking, aviation, real estate, textiles, power generation, Information Technology, ceramics, and more. The Beximco Park is a testament to the evolution of the import-export company into a multinational conglomerate.  He is working as the Honorable Prime Minister Sheikh Hasina's Private Sector Industry and Investment Adviser. He is also Member of Parliament from Dohar and Nawabganj.

Owing to his rich experience of more than 45 years in the field, Salman F Rahman was appointed as Awami League’s private sector development adviser. An environment promoting business was created at that time, boosting GDP growth rate by 7.2% in 2016, and 7.1% in 2017. Before that, debt fell by 32.4% in 2015 due to the government’s bullish approach.

Because of the stark Bangladeshi progress, Salman F Rahman has been acknowledged as an asset to the country, prompting Awami League to induct him into their party. On 30 December 2018, Salman will be contesting the General Elections from Dhaka-1, an extremely valued constituency with an electorate of 378,968 (2014).

Rahman’s victory has the potential to heavily alter the economic dynamics for the good. The government is aiming for Digital Bangladesh Vision 2021, where the entire country is integrated into a single digital network. To make that happen, economic dynamics need to be unrestrained but controlled. It’s only possible if the government is led by people who understand the intricacies of the market, the economy, and business.

Bay of Bengal is to become an economic hub

Salman F Rahman recently said that Bangladesh should accelerate the process of turning the Bay of Bengal to a hub of economic uplift through proper utilization of marine resources, which will contribute significantly in attaining the cherished double digit GDP growth. After winning the sea area, he said, the present government is providing special attention to utilizing the resources under water to boost up the economy. “The government is implementing different initiatives to explore the potentialities of the blue economy. We hope that investment will also come in blue economy soon,” he added.

Earlier, a total of 11,8,813 square kilometer maritime boundary in the Bay of Bengal was added to Bangladesh after the settlement of longstanding disputes with India and Myanmar.

Connectivity and economic activity are closely related. Asian Development Bank first used the term “economic corridors” in 1998, as a concept for planned development across a geographical space. According to ADB’s theory, an economic corridor has three components -- first is the trade and transport corridor itself, where roads and ports are an integral component, especially in the context of logistics performance, second are the industrial production clusters that produce goods and services, and third are the urban centres that function as major markets and as a source of labour, technology, knowledge, and innovation. The fourth edition of Bay of Bengal initiatives for multi-sectoral, technical, and economic co-operation (Bimstec) was held in Kathmandu, Nepal in August 2018. The main focus of the summit was to increase connectivity between Bimstec nations, including roads, airways, and transmission lines.

Bimstec is the sub-regional group of seven countries in South Asia and Southeast Asia lying in the littoral and adjacent areas of Bay of Bengal. South Asian Association for Regional Cooperation (Saarc) has become ineffective, largely due to non-agreement among member countries on issues like connectivity and counter-terrorism, and everyone has been giving more importance to Bimstec in recent times.

The countries dependent on the Bay of Bengal include littoral and landlocked countries that depend on the Bay of Bengal for maritime usage. Historically, the Bay of Bengal has been a highway of transport, trade and cultural exchange between diverse peoples encompassing South Asia and Southeast Asia. Today, the Bay of Bengal region is the convergence of two major geopolitical blocs- the Association of Southeast Asian Nations (ASEAN) and the South Asian Association for Regional Cooperation (SAARC). The Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC) promotes regional engagement in the area.

Not just a businessman - Salman F Rahman

Salman F Rahman is not only a businessman. He is visionary, industry captain, he is behind the economic success of Bangladesh.

A nation’s growth and prosperity often depends on the Business and economic development. Any business-notion on part of pioneers brings good result for a nation’s economy. Many examples from history proves that individuals often can be attributed to kick start a nation’s potential as well as its growth. For Bangladesh, Salman F Rahman, the co-founder Beximco, is such a personality. His efforts in setting up a business paradigm and a conducive environment for local businesses has been instrumental for the relatively nascent economy of Bangladesh.

In other words, Salman F Rahman’s efforts have been synonymous with the growth of Bangladesh.

The visionary man - Salman F Rahman

He set up Beximco in 1972 after his family inherited jute mill was nationalized by then Government of Bangladesh in 1971. The business journey started out with seafood exports to target countries including Germany, France, the UK, Netherlands, and Belgium. The initial trajectory soon transformed into a journey towards setting a conglomerate that worked on Bangladesh’s strengths and harnessed its potential as well as gave the country and its trading partners an impetus to invest in Bangladeshi economy. An example for the uninitiated would be Salman’s initiative in the textile, seafood and the pharma industry. That predicament possibly transformed into Bangladesh’s first private stint with the international market and resulted in Salman’s foray into international markets. The polarized status quo resulted in his inclination towards pharma wherein instead of making heavy profits in cash, he chose to import medicines worth the same cost to meet the country’s pharmaceutical demands.


After some years, he decided to manufacture and supply local pharmaceutical requirements from within the country. Consequently, 1976 witnessed the birth of Beximco Pharmaceuticals and since then, Beximco has expanded under his’s vision and guidance. Apart from the company’s growth, he traversed a journey of his own as a businessman and industrialist of note internationally – considering how he shaped the world’s perception towards Bangladesh’s indigenous industries and exports. The associated acumen, vision and experience further resulted in his appointment as the Private Sector Development Affairs adviser to the Bangladesh Awami League President Sheikh Hasina.

Though the country’s rising GDP in the past decade is the testament of the aforementioned, Salman F Rahman’s belief of harnessing the country’s business potential for its enhanced prosperity could further be advanced to enhance, empower and strengthen the country’s economic potential at the political and administrative front.

Is Bangladesh ready for the Fourth Industrial Revolution?

The world is currently experiencing the fourth Industrial Revolution. Is Bangladesh ready?

There is just no point in arguing if it is good or bad, if it will benefit Bangladesh or not. Fourth Industrial Revolution is not something for us to accept or, reject or, regulate

The first Industrial Revolution began in the middle of the 18th century with the invention of the steam engine by Thomas Newcomen. Then, as we entered the second Industrial Revolution, we found a way to mass-produce electricity-based products until the 1970s. The third Industrial Revolution was the digital revolution, with the wave of information and communication technologies which gave birth to the new “knowledge economy.” This has created thousands of new businesses and millions of new jobs, and laid the foundation for a sustainable global economy in the 21st century. 

It is quite challenging for both developed and developing nations. Developed nations would perhaps be able to cope with it because of their technological progress, and their skilled workforce with specialized know-how, training, and experiences. Bangladesh has a large workforce but is it skilled?

At micro or macro levels, each of us is only to get ready – in the government or, in business or, in research. And, move fast. We need to employ our imagination, creativity, innovation without hindrance or, inhibition – for our schools, factories, companies and even government. Some 4,554 Union Digital Centres, e-procurement, 100+ simplified public services, and smart health cards for instance are leading us on the Fourth Industrial Revolution pathway.

Bangladesh has obtained unprecedented technological advancement through the ruling party’s Digital Bangladesh manifesto. However, Bangladesh has failed to develop technology-oriented employment sectors. For instance, despite these positive technological advances, Bangladesh is still lagging behind in the adoption of e-commerce in small and medium-sized enterprises (SMEs). There is no doubt that SMEs contribute significantly to the economy of a country by creating employment opportunities, eradicating poverty, and generating export revenue. To accelerate and augment this economic contribution, the adoption of e-commerce in Bangladesh SMEs is essential. The emergence of globalization and the integration of regional economic growth have introduced new challenges as well as new opportunities for SME development in Bangladesh.

Readymade garment sector 's value addition rises

Gross value addition from country’s readymade garment sector in the first half of current financial year 2018-19 (July-December) increased slightly from that of the financial year 2017-18.

According to the quarterly review of Bangladesh Bank, the gross value addition from the readymade garment sector stood 63.23 per cent in the first half or the current financial year 2018-19. The value addition in FY 19 was 60.94 per cent, the data showed.

Bangladesh Bank calculated the value addition considering the import price of raw materials including cotton, synthetic/viscose fibre, synthetic/mixed yarn, cotton yarn and textile fabrics and accessories. It showed that import price of raw materials in the July-December period of FY 19 stood at $6.28 billion which is 36.77 per cent of total export earnings from RMG sector of $17.08 billion in the period. Thus, raw materials prices shared 36.77 per cent of the total value of RMG export. It means local value addition is estimated at 63.23 per cent.

‘The existing trend of local value addition in RMG sector is satisfactory and we have little scope to increase the value addition more as we have no cotton,’ Policy Research Institute executive director Ahsan H Mansur told.

According to the data, the import value of raw materials in FY 18 was 39.06 per cent of total export earnings from RMG and the local value addition was 60.94 per cent. The report also showed that the local value addition from RMG sector remained static between 60-63 per cent in the past six years.

The BB data showed that the gross value addition from RMG sector was 61.67 per cent in FY 17, 63.66 per cent in FY 16, 62.37 per cent in FY 15, 60.51 per cent in FY 14 and 61.76 per cent in FY 13.

The quarterly report showed that total export earnings from RMG during October-December of FY19 increased by 8.56 per cent as compared to the previous quarter and 16.58 per cent compared to the corresponding quarter of previous fiscal year.

During October-December of FY19, RMG sector earned 8.89 billion which was 84.22 per cent of total export earnings. This share was 82.44 per cent in the same quarter of the corresponding year, data showed. The data also showed that, country’s RMG sector earned $30.61 billion in the FY 18 with 8.76 per cent growth and the earnings were 83.43 per cent of total export.

Economic success underway

Bangladesh celebrated a pivotal moment last year when it met United Nations criteria to graduate from "least developed country" status by 2024. Prime Minister Sheikh Hasina considers the elevation of status to "developing economy"  a significant boost to the nation's self-image.

Bangladesh's economic performance has even exceeded government targets on many fronts. With a national strategy focused on manufacturing—dominated by the garment industry—the country has seen exports soar by an average annual rate of 15-17% in recent years; reaching a record $36.7 billion in the year through June.

This sector is on track to meet the government's goal of $39 billion in 2019, and Prime Minister Sheikh Hasina has urged industry to reach a $50 billion valuation by 2021; to mark the 50th anniversary of the Liberation War, said the Nikkei Asian Review report.

A vast community of about 2.5 million Bangladeshi overseas workers further buoys the economy with remittances that jumped an annual 18% to top $15 billion in 2018. However, Hasina also knows the country needs to move up the industrial value chain. Political and business leaders echo her ambitions to shift from the old model of operating as a low-cost manufacturing hub partly dependent on remittances and international aid.

Sheikh Hasina launched a "Digital Bangladesh" strategy in 2009 backed by generous incentives. Now, Dhaka, the nation's capital, is home to a small but growing technology sector led by CEOs who talk boldly about "leapfrogging" neighboring India in IT. Pharmaceutical manufacturing—another Indian staple—is also on the rise. The government is now implementing an ambitious scheme to build a network of 100 special economic zones around the country; 11 of them have been completed while 79 are under construction.

The ready-made garment industry is a key factor in the country's phenomenal success story. The industry is the country's largest employer, providing about 4.5 million jobs, and accounted for nearly 80% of Bangladesh's total merchandise exports in 2018. It has undergone seismic changes since the watershed Rana Plaza disaster in 2013, when a multi-story garment factory complex collapsed, killing more than 1,130 workers. In the aftermath, the industry was forced by international apparel brands to implement sweeping reforms; including factory upgrades, inspections, and improved worker conditions.