Banking on Bangladesh Strategies for Foreign Investors

Surge in Loan Volume for Foreign Projects        

Domestic private banks provided over BDT 350 billion in loans to foreign investment projects in 2022, a significant 20% increase compared to 2021. This trend is expected to continue, with projections exceeding BDT 420 billion in loans by the end of 2023 .

Guarantees: Paving the Way for Larger Investments        

Issuing guarantees for foreign investors is another strategy gaining traction. Bangladeshi banks issued over BDT 180 billion in guarantees in 2022, facilitating access to financing for large-scale projects. This aligns with a World Bank report on "Private Participation in Infrastructure," highlighting the crucial role of bank guarantees in attracting foreign investment to Bangladesh's infrastructure sector.

Expert Guidance: Advisory Services on the Rise        

Leading Bangladeshi banks like BRAC Bank, Standard Chartered Bangladesh, and Citibank are actively providing customized investment advisory services to foreign investors. These services encompass valuable resources such as market research, project feasibility assessments, and legal and regulatory guidance. Interviews with key stakeholders within these banks can offer further insights into the scope and impact of these services.

Bangladesh's Economic Potential: A Look at the Numbers

• Bangladesh boasts a young and growing population of over 170 million, presenting a vast consumer base and workforce potential
• The country's GDP growth is projected to reach 7.2% in 2024, signifying a robust and expanding economy
• The World Bank's Ease of Doing Business ranking for Bangladesh has steadily improved, currently at 129th out of 190 economies