Bangladesh’s Chief adviser Professor Muhammad Yunus recently traveled to the United Arab Emirates to attend the World Governments Summit (WGS) in Dubai from February 12-14. In addition to joining the WGS, the Chief Adviser had side meetings with a number of UAE ministries.
At the meetings, topics of mutual interest were also covered, such as reducing the limitations on visas for Bangladeshi nationals, the growth of trade and commerce, the ambitions of UAE companies to invest in Bangladesh’s Chittagong Port, and the development of sports and educational partnerships. Yunus’ visit to the UAE has revitalized UAE-Bangladesh relations, and may bring more quality UAE inbound investment in Bangladesh to further the South Aisa’s 2nd largest economy’s economic objectives.
Yunus urged UAE officials to remove visa limitations on Bangladeshi nationals and increase recruiting more Bangladeshis during the discussions. He extended an invitation to Emirati businesses to move their manufacturing to Bangladesh. After Thani bin Ahmed Al Zeyoudi, the UAE commerce minister, presented a proposal, he also agreed in principle to create a special industrial park for UAE companies. The Chief Adviser informed the commerce minister that UAE companies could use Bangladesh’s inexpensive labor to turn the country into a hub for the production of Halal goods. The trade minister stated that he would want to head a high-level trade and investigative team to Bangladesh in the upcoming months.
It is important to note that Abu Dhabi Ports Group and Masdar, two significant United Arab Emirates corporations, have recently announced plans to engage in Bangladesh’s port development, management, and logistics as well as the renewable energy industry. Prominent UAE companies are very interested in investing in Bangladesh, including the Al Nahiyan Trust’s social programs, the logistics giant DP World, the renewable energy business Masdar, and the aviation service provider Dnata. To boost Bangladesh’s export competitiveness abroad, two of the largest port operators in the world, Abu Dhabi Ports and DP World, are eager to invest in the country’s shipping sector and Chittagong port. By constructing additional ports along the Bay of Bengal coast, they want to assist Bangladesh in becoming a major exporting nation.
The tenacity required to transform such conversations into real economic prospects is demonstrated by this follow-up meeting held in Dubai during the World Government Summit (WGS). Such interactions are essential for both countries’ development because Bangladesh and the UAE are already important regional partners and among each other’s biggest commercial allies. The UAE Minister and companies reaffirmed their commitment to further fortifying and growing the already solid bilateral ties, which is positive given that 2025 marks the 51st anniversary of Dhaka-Abu Dhabi diplomatic relations.
The Bangladesh Bureau of Statistics reports that the investment-to-GDP ratio, which has been lagging since the Covid epidemic, fell from 32.25 percent in FY2022 to 30.95 percent in FY2023 before contracting by another 0.25 percentage points in FY2024. In light of Bangladesh’s daily struggles with the downward trend of foreign investment, the UAE’s investment offers and promises at this vital period may be essential to navigating the country’s economic and investment issues.
The UAE is one of the biggest foreign investors in Bangladesh, having quality investments in the energy, ports, electricity, and infrastructure sectors. Furthermore, a flow of more UAE investment is essential as the UAE is eager to increase bilateral trade to $5 billion by 2025 and $10 billion by 2030. In order to achieve the 2025 and 2030 targets, this volume should now be raised. It is necessary to grow bilateral trade from $1.8 billion in 2023 to at least $5 billion by 2027. Duty free access to Bangladeshi products in the UAE markets should be continued.
Therefore, in order to attain long-term economic stability, it is imperative that Bangladeshi authorities concentrate on increasing UAE investment. Bangladesh’s appeal as an investment destination has increased further with the establishment of the Exclusive Economic Zone (EEZ) and other key areas.
According to various reports that Bangladesh offers the UAE a plethora of industries that are ready for cooperation and investment, making it an attractive place to invest. Bangladesh offers a wide range of investment options for the United Arab Emirates, including LNG terminals, power sectors, port management, the blue economy, portfolio investment, and infrastructure development projects. Textiles, leather, jute and its products, power, renewable energy, biotechnology, tourism, and ICT are some areas in which the UAE might investigate investment opportunities. UAE’s government and investors may participate in joint ventures with Bangladeshi investors or local business.
One of this relationship’s most important aspects may continue to be strategic cooperation in the areas of UAE investment, labor migration, and remittances. A major source of remittances to Bangladesh, the UAE has long been a popular destination for Bangladeshi expatriate workers. During the past five years (2020–2024), Bangladesh has sent 201,702 individuals to the United Arab Emirates. Bangladesh expects that the UAE may take in more Bangladeshi migrants and increase their contribution to the macro economy. In fact, the CA has made the point that expediting visa processing is necessary, which is positive. The sooner both countries recognize this urgent requirement, the better.
Through close cooperation, both nations can guarantee the protection and well-being of migrant workers by resolving visa-related restrictions, such as pending employment visa applications, facilitating workforce mobility, and cultivating a partnership based on compassion and shared responsibility.
Since the UAE’s economy has benefited from the presence of a sizable Bangladeshi diaspora employed in the healthcare, shopping markets and hospitality industries, the Gulf nation need to think about hiring more Bangladeshi expats. Recognizing the UAE’s crucial contributions to Bangladesh’s economic development and the sizeable remittances they receive, Bangladesh needs to prioritize receiving higher-quality remittances from the UAE.
Nevertheless, more pragmatic trade and investment approaches can be investigated. This is the ideal moment to capitalize on the UAE’s interest in Bangladeshi clothing, leather, agricultural goods, medicines and industry expertise, as has already been noted in earlier studies.
From a cultural perspective, a closer collaboration may develop interpersonal relationships and foster mutual understanding and respect between Bangladeshi and UAE people. Other potential pathways include cultural events, tourist projects, and educational exchanges.
In order to manage the economic crisis and inflation, one of Bangladesh’s main tactics is to fortify ties with countries both domestically and internationally. In addition to achieving economic resilience, Bangladesh may establish enduring friendship and collaboration with the UAE as a reliable partner.
Following months of efforts to stabilize macro-economic indices and reduce political unrest, the caretaker government is now spearheading efforts once more, this time to draw in foreign capital, boost investor confidence, and persuade multinational corporations to contribute to Bangladesh’s economic expansion.
The interim government of Bangladesh is carrying out important reform programs that are intended to promote political and economic stability as well as growth in a number of areas. A prime example of this diplomatic effort was CA’s recent trip to the United Arab Emirates, where he met with high-ranking authorities. This robust diplomatic strategy is expected to produce tangible outcomes, attracting much-needed investment into Bangladesh and putting the nation’s economy on a road toward recovery.