UK Firms Eye Bangladesh for New Investment Sectors

British businesses are showing growing interest in Bangladesh, driven by expanding trade ties and promising opportunities in renewable energy, technology, and infrastructure. In an exclusive interview, Bangladesh’s High Commissioner to the United Kingdom, Abida Islam, highlighted the growing economic partnership between the two countries and outlined new initiatives aimed at attracting UK investment and expanding bilateral trade.

In this interview, Abida Islam discusses trade, investment, climate cooperation, and the future of Bangladeshi students in Britain. Her detailed interview is given below:

Q: What is the current trade volume between Bangladesh and the UK, and what are the future targets?

Abida Islam: Bilateral trade between Bangladesh and the UK now exceeds USD 6.0 billion. Bangladesh exports around USD 4.5 billion worth of goods to the UK, mainly ready-made garments (RMG), while UK exports to Bangladesh stand at approximately USD 500 million. We aim to raise our exports to around USD 6.0 billion within the next five years, targeting a steady 5–7% annual growth. Diversification beyond RMG is also a priority, with sectors like pharmaceuticals, IT, and agro-processing showing strong potential.

Q: What steps are being taken to strengthen economic cooperation?

Abida Islam: Both countries are working on several strategic initiatives. These include expanding One-Stop Services for investors, launching product showcases in London, and exploring the establishment of a trade office in Ireland. We are also enhancing financial cooperation through improved remittance incentives and plans to introduce an Islamic Bond Scheme in GBP for the Bangladeshi diaspora. Improving air connectivity, including a proposed Sylhet–Stansted direct flight and a dedicated "Mango Cargo" service for perishable goods, is part of our efforts to support trade logistics.

Q: What is the potential of Bangladesh’s Blue Economy?

Abida Islam: The Blue Economy offers vast untapped opportunities, though its current contribution to GDP is only about 3%. Marine fisheries, aquaculture, biotechnology, and ocean renewable energy present significant growth prospects. Additionally, non-living marine resources like seabed minerals and oil can strengthen our energy security. With sustainable planning and investments in marine education, Bangladesh can position itself as a key maritime hub in the region.

Q: How do you assess British investors’ interest in Bangladesh?

Abida Islam: British investors are increasingly recognising Bangladesh’s potential. The UK has been our top investor over the past two years, drawn by our growing middle class, strategic location, and expanding markets. Investments are focused on sectors like renewable energy, infrastructure, and technology. With the interim government under Nobel Laureate Dr Muhammad Yunus introducing reforms and improving the ease of doing business, I believe British investment will continue to grow.

Q: How is Bangladesh partnering with the UK on climate change?

Abida Islam: Bangladesh is one of the countries most vulnerable to climate change. Our collaboration with the UK is critical in addressing this challenge. The 2023 Climate Accord and the UK’s leadership in the Glasgow Climate Pact have strengthened this partnership. We look forward to further cooperation in protecting ecosystems, promoting nature-based solutions, and mobilising climate finance, especially through projects like the Global Centre on Adaptation’s regional hub in Dhaka.

Q: What are the prospects for Bangladeshi students in the UK?

Abida Islam: The UK remains a top destination for Bangladeshi students, who are drawn to its globally recognised universities and diverse academic programmes. Scholarships like Chevening, Commonwealth, and GREAT help many pursue higher education. However, high tuition and living costs, alongside recent visa restrictions, have slowed student growth. Still, the UK’s quality education and strong global career prospects continue to attract students from Bangladesh.

Q: How do British people now view Brexit, five years later?

Abida Islam: Brexit remains a divisive issue. According to recent surveys, a majority of British citizens view Brexit’s outcomes negatively. While legislative autonomy has been achieved, economic setbacks such as reduced exports and a smaller GDP persist. For Bangladesh, the UK’s Developing Countries Trading Scheme (DCTS) has helped maintain market access for our exports, though new customs regulations and supply chain complexities present fresh challenges.

Q: Has the Iran-Israel conflict affected Bangladesh’s economy?

Abida Islam: Yes, global conflicts, including the Iran-Israel crisis, have significantly impacted Bangladesh. They have driven up commodity prices, disrupted supply chains, and worsened the cost-of-living crisis. Our economic recovery from COVID-19 and the Ukraine war was already under pressure when Middle East tensions added to global instability. Bangladesh strongly advocates for peaceful resolutions to ensure global economic stability.