Bangladesh proposes hosting Saudi production hub to expand partnership
Dr. Abdullah bin Abiyah presented his credentials as Saudi ambassador to Bangladesh earlier this month. He paid a visit to Yunus at the State Guest House Jamuna on Sunday.
Yunus, the Nobel Prize-winning economist who heads Bangladesh's interim government, 'proposed that Saudi Arabia could consider establishing its production sector in Bangladesh by utilizing Bangladesh's geostrategic location, cheap labor, and the country's resources,' the Chief Adviser's Press Wing said in a statement.
Azad Majumder, Yunus' deputy press secretary who was present during the meeting, told Arab News that the move would be beneficial for both countries as it would 'create employment opportunities for the Bangladeshi youth and offer Saudi Arabia an opportunity to obtain essential goods at a better price.'
The Saudi market is already familiar with Bangladeshi workers as some 3 million of them live in the Kingdom. They are the largest expat group in the Kingdom and the biggest Bangladeshi community outside Bangladesh.
Many have been employed in the construction sector but increasingly also in professions requiring high skills. In 2023, Saudi Arabia launched the Workers' Recruitment and Skill Verification Program in Bangladesh, aiming to advance the professional competence of employees in the Kingdom's labor market.
Yunus discussed with the Saudi envoy the prospect of increased investment in health education to support skills development in Bangladesh's healthcare sector.
'It would also benefit the Kingdom, given the growing demand for medical professionals in Saudi Arabia. In recent years, Bangladesh has sent a number of healthcare workers there,' Majumder said.
'A number of issues concerning the bilateral relationship between Bangladesh and Saudi Arabia were discussed during the meeting. Prof. Yunus expressed his hope that the Saudi-Bangladesh relationship will reach new heights during Ambassador Abiyah's tenure and pledged full support from his government to achieve this goal.'
The ambassador delivered an invitation letter from Saudi Crown Prince Mohammed bin Salman for Yunus to attend the Future Investment Initiative Forum in Riyadh in October.
Often dubbed 'Davos in the Desert,' the forum is an annual international investment and innovation conference that gathers global leaders, investors, entrepreneurs, and innovators.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
9 hours ago
- Arab News
Bangladesh secures 20 percent US tariff for garments, exporters relieved
DHAKA, KARACHI, AHMEDABAD: Bangladesh has negotiated a 20 percent tariff on exports to the US, down from the 37 percent initially proposed by US President Donald Trump, bringing relief to exporters in the world's second-largest garment supplier. The new rate is in line with those offered to other major apparel-exporting countries such as Sri Lanka, Vietnam, Pakistan and Indonesia. India, which failed to reach a comprehensive agreement with Washington, will face a steeper 25 percent tariff. Trump put steep tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, ahead of a Friday trade deal deadline. • India faces higher 25 percent tariff on apparel shipments. • Pakistani exporters cautious about impact of 19 percent tariff. The outcome secured by Bangladesh — home to a $40 billion apparel export sector — reflects careful negotiation, said Khalilur Rahman, national security adviser and lead negotiator. 'Protecting our apparel industry was a top priority, but we also focused our purchase commitments on US agricultural products. This supports our food security goals and fosters goodwill with US farming states,' Rahman said. Muhammad Yunus, the head of the country's interim government, called it a 'decisive diplomatic victory.' The readymade garments sector is the backbone of Bangladesh's economy, accounting for more than 80 percent of total export earnings, employing about 4 million workers, and contributing about 10 percent to gross domestic product. The prospect of higher US tariffs has rattled Bangladesh's ready-made garments industry, which fears losing competitiveness in one of its largest markets. 'While the 20 percent tariff will cause some short-term pain, Bangladesh remains better positioned than many of its competitors,' said Mohiuddin Rubel, additional managing director at Denim Expert Ltd, which makes jeans and other items for brands including H&M. Exporters in neighboring India said the relatively higher tariffs levied would hurt the country's textile exports, as its competitors like Bangladesh, Vietnam and Cambodia got lower tariffs. 'We are hoping that the tariffs will be rationalized. We will have to recalibrate our strategies depending on the final tariff imposed, said Chintan Thakker, chairman of industry body ASSOCHAM in the state of Gujarat, a major apparel exporter. 'Devil will be in the details' Pakistan, which exported about $4.1 billion worth of apparel to the US in the 2024 fiscal year, secured a tariff rate of 19 percent, but industry figures were cautious about the immediate impact. 'Considering India's lower production costs and the likelihood of it negotiating reduced tariffs in the near term, Pakistan is unlikely to either gain or lose a meaningful share in the apparel segment,' Musadaq Zulqarnain, founder and chair of Interloop Limited — a leading Pakistani exporter. 'If the current reciprocal tariff structure holds, significant investment is likely to flow into DR-CAFTA countries and Egypt,' he said, referring to a trade agreement between the US and a group of Caribbean and Central American countries. Elsewhere in South Asia, Sri Lanka also secured a 20 percent tariff rate from the US, which accounted for 40 percent of its apparel exports of $4.8 billion last year. 'The devil will be in the details as there are questions over issues such as trans-shipment, but overall it's mostly good,' Yohan Lawrence, secretary general of the Joint Apparel Associations Forum, a Sri Lankan industry body, told Reuters.
Leaders
11 hours ago
- Leaders
Industry Minister Inaugurates Expanded PepsiCo Plant in Dammam
Minister of Industry and Mineral Resources Bandar Alkhorayef officially inaugurated the expanded PepsiCo manufacturing facility in Dammam's Second Industrial City on Thursday. The ceremony was attended by Ahmed El Sheikh, President and General Manager for Middle East, North Africa, and Pakistan Foods at PepsiCo. Food Manufacturing Sector During the inauguration, Minister Alkhorayef emphasized the significance of PepsiCo's growth within Saudi Arabia's food manufacturing sector—a key focus area under the National Industrial Strategy. He reaffirmed the ministry's dedication to supporting the company's expansion by offering essential enablers for innovation, product development, and operational growth. These efforts aim to position Saudi Arabia as a regional leader in food production and exports. PepsiCo's Commitment to Kingdom Ahmed El Sheikh underscored Saudi Arabia's role as a vital growth hub for PepsiCo's regional and global operations. He also pointed to the Dammam facility expansion and the company's new regional headquarters as examples of PepsiCo's long-term investment in the Kingdom. Both initiatives reflect the company's alignment with national and regional economic priorities. Future Investment, Local Empowerment El Sheikh also shared PepsiCo's plans to further enhance its presence in Saudi Arabia. These include exploring new investment opportunities, supporting local agriculture, creating jobs, strengthening supply chains, and expanding exports. Currently, PepsiCo operates in 86 locations across the country and employs around 9,000 people. Moreover, at the Dammam facility, 84% of the workforce are Saudi nationals, and women make up approximately 22% of the total staff. Over the past eight years, PepsiCo has invested more than SAR 9 billion in the Kingdom. In 2023 alone, the company allocated SAR 300 million for the expansion and modernization of its Dammam plant, signaling its continued commitment to growth and innovation in Saudi Arabia. Related Topics : Saudi Arabia, Denmark Explore Investment Opportunities in Industry, Mining Kurt Westergaard, the Prophet Muhammad cartoonist from Denmark dies at 86. Saudi Foreign Minister: Two-State Solution is Basis for Peace, Security WHO Honors Saudi Arabia for Trans Fat-Free Food Products Short link : Post Views: 60
Leaders
11 hours ago
- Leaders
Health Minister Reviews Major Healthcare Projects in Madinah
Health Minister and Chairman of the Health Holding Company Board of Directors, Fahad AlJalajel, recently conducted an inspection tour of key health projects at King Salman bin Abdulaziz Medical City in Madinah. These initiatives, led by the Madinah Health Cluster, aim to elevate healthcare quality and accessibility in line with the Health Sector Transformation Program and the broader goals of Saudi Vision 2030. Specialized Women's Health Center AlJalajel visited the placenta previa treatment center—part of the women's health track under the Saudi Model of Care. The center supports cesarean deliveries conducted in the interventional radiology department and offers uterine artery embolization procedures, which help reduce complications and improve safety for both mothers and newborns. The minister reviewed enhancements at the emergency departments of both the main hospital and the Maternity and Children's Hospital. Key improvements include: A 101-bed capacity upgrade A new 12-bed rapid triage area A fully activated case management system Expanded waiting areas These upgrades are designed to enhance patient flow, boost readiness, and improve overall care quality. A major stop on the tour was the newly expanded interventional radiology department, which now includes two cutting-edge devices. This 200% increase in capacity is expected to significantly improve diagnostic precision, treatment efficiency, and reduce the need for surgical interventions. Technology-Driven Prevention, Treatment AlJalajel also inspected the diabetic foot treatment center, which offers integrated preventive and therapeutic services. The center uses advanced technologies to manage complications and improve the quality of life for diabetic patients. The tour included a visit to the newly opened hemodialysis center, developed in partnership with the Abdullah Alrajhi Foundation. The facility is equipped with 10 beds, including isolation and respiratory rooms, and built to top-tier medical standards. To strengthen emergency response infrastructure, the minister reviewed the implementation of phase two of the air evacuation landing strips initiative. Finally, this phase adds seven new landing pads at King Salman Medical City, Al-Haram Hospital, and other regional hospitals—bringing the total to 15 helipads across the Madinah Health Cluster. Related Topics : Saudi Arabia Inaugurates New Healthcare Projects in AlUla Canadian Firms Eye Saudi Healthcare Investments Saudi Development Fund Injects $205mn into 3 Projects in Serbia Saudi Arabia turns into the largest construction site in the world, with projects exceeding one trillion dollars Short link : Post Views: 9
