Saudi Investment: Dhaka places $35b proposal

The $35 billion investment proposal submitted by Dhaka to Riyadh will be reviewed by a joint working committee headed by a senior minister of Saudi Arabia.

The decision was made at a meeting on Saudi-Bangladesh investment cooperation in a city hotel yesterday. 

Majed Bin Abdullah Al-Qasabi, the Saudi commerce and investment minister, Mohammed bin Mezyed Altwaijri, the Saudi economy and planning minister, AHM Mustafa Kamal, finance minister of Bangladesh, and Salman F Rahman, prime minister's private industry and investment adviser, were present at the meeting.

Earlier in the day, Bangladesh signed two agreements and four memoranda of understanding (MoUs) with Saudi Arabia at the Prime Minister's Office in the presence of Prime Minister Sheikh Hasina. 

Briefing reporters after the meeting, Kamal said, “The project proposals that we have placed to them [Saudi delegates] do not cost less than $35 billion.”

The Saudi delegation asked the Bangladeshi side to form a joint working committee headed by Mohammed bin Mezyed Altwaijri in response to the proposals, he added. 

Kamal said other ministers from Bangladesh and Saudi Arabia would be included in the committee.

“The Saudi authorities will conduct studies on the proposed projects and then they will inform us about the decision on investment very soon.”

He added he was hopeful of getting a green signal as the committee included the planning minister of Saudi Arabia who was authorised to make the decision.

However, Kamal said the real investment figure would be finalised after the studies were conducted.

A 34-member Saudi delegation arrived in Dhaka last night to join the meeting, with the Saudi commerce and planning ministers having arrived earlier on Wednesday. 

“I want to assure you this is a new chapter of Saudi-Bangladesh relationship,” Saudi Commerce Minister Qasabi said during an introductory session yesterday morning.

Terming Bangladesh an “Asian Tiger,” he said his country was “serious” in seeking out and enhancing businesses in Bangladesh.

“We are here to [offer] support. We are here to work, identify scopes, listen and open the highway of dialogue between the two countries.”

He also expressed interest in forming a Saudi-Bangladesh business council to enhance bilateral trade and invite Bangladeshi businesses to Riyadh.

Finance Minister Kamal said when the PM had urged the Saudi king and crown prince in October 2018 to send a business delegation to Bangladesh to get first-hand experience of the prospects of business in Bangladesh.

On her request, the Saudi government sent the high-level team, comprised of two senior ministers, two deputy ministers and business tycoons.

Kamal claimed that the visiting Saudi delegation believed that Bangladesh had improved more.

Bangladesh placed 17 projects for Saudi investment, including a rail link from Bhanga to Pyara port, high speed railway linking Dhaka-Chattogram, establishment of oil-refinery and petro-chemical complex, storage, establishment of aircraft maintenance facility in Lalmonirhat, a manufacturing unit for high-voltage cables and construction of hotels and tourism facilities, along with a Saudi special economic zone in Mirsarai, a urea-ammonia plant and upgrading service of state-owned mobile operator Teletalk to 4G.

2 AGREEMENTS, 4 MoUS SIGNED

Bangladesh inked two agreements and four memoranda of understanding (MoUs) with Saudi Arabia.

The deals included a $ 100 million agreement between Alfanar Company and Electricity Generation Company of Bangladesh Limited for 100MW Solar IPP and a $35 million agreement between General Electric Manufacturing Company Limited and Engineering Dimension on manufacturing transformers and electricity devices.

The MoUs included one signed between Bangladesh Chemical Industries Corporation and Yousuf Al Rajhi Const Est on urea formaldehyde plant; one between Al Maml Trading Est and BMET; an MoU between Bangladesh Sugar and Food Industries Corporation and Al-Afaliq Group on Saudi-Bangladesh institute of bio-medical engineering and technology; and one between Bangladesh Steel and Engineering Corporation and Riyadh Cables Group of Companies on manufacturing cables.

Welcoming the two Saudi ministers, Hasina conveyed her regards to the Saudi king and the crown prince, reports UNB.

The PM said her government had set up special economic zones where the government was giving land to various companies so that they could establish industries as per their choice.

In this regard, she asked the Saudi entrepreneurs to invest in the special economic zones for mutual benefits.

Talking about THE aeronautics sector, which was identified for Saudi investment, she said the government had enacted a law to set up an Aviation and Aerospace University in Lalmonirhat.

PRIVATE SECTOR INVESTMENT

Replying to a question regarding private sector investment, Finance Minister Kamal said they had placed a list of projects which would be studied before approval.

According to the proposal, around 17 projects were placed to the Saudi delegation at a cost of around $3 billion.

The minister said if they invest here, Bangladesh would fulfill regional demand as well as their expectation.