Why Invest?

Investor Friendly Policies.
Large and Young Working Population.
Growing Middle and Affluent Class Population.

Why Bangladesh?

Bangladesh showed an impressive average annual GDP growth rate of ~6.5% over the last decade. Areas including infrastructure and supply chains are driving investments in the region. With its ever-growing connectivity and rapidly rising middle-class population, Bangladesh is building a bright future.

Payra Deep Sea Port
The Port of Payra at Patuakhali in southern Bangladesh has generated huge foreign interest in recent years
The pharmaceutical industry is projected to have a compounded annual growth rate greater than 12% and surpass USD 6 billion during the 2019-2025 period
Agriculture accounts for around 13.6% of the GDP of Bangladesh and employs about 40.6% of the total labor force of the country
Export Processing Zone
For export-oriented activities, the GoB currently oversees the operations of eight export processing zones (EPZ)
The startup ecosystem of Bangladesh, centered around the capital Dhaka, has gone through a remarkable transformation
RMG & Textile
Bangladesh is today the world’s third-largest clothing exporter which accounts to 80% of the country's exports




Bangladesh lies at the heart of the world’s most dynamic region

Being tucked between China and India, and within close proximity to burgeoning Southeast Asian economies such as China, India, Indonesia, and Thailand (among others), Bangladesh has the ability to leverage its geographic location through the strategic and economic value it provides. Bangladesh’s strategic location allows the potential to open up vast opportunities for participation in global value chains.

  • The Bangladesh, Bhutan, India, Nepal (BBIN) Initiative is a sub-regional agreement between countries in Eastern South Asia. The main objective of the agreement is to provide seamless people-to-people contact and enhance economic interaction by facilitating cross-border movement of people and goods.

  • The Payra Deep Sea Port in the southwest of Bangladesh is a key project in China’s One Belt One Road Initiative.

  • A major FDI prospect for Bangladesh comes as a byproduct of the tension between the U.S. and China; namely the ongoing trade war and its implications on the global economy.

Source: LightCastle Analytics Wing, Trading Economies, UNCTAD

Outperforming GDP, Inclusive Growth, Rising Middle-Class, and Diversification​

Despite the global economic crisis due to the COVID-19 pandemic, Bangladesh recorded an impressive annual GDP growth rate of 4.5% in 2021. The country’s annual GDP growth rate officially surpassed that of India’s in 2016 and has been higher than that of its neighbor since then.

  • The economy is on track in graduating from the LDC status in 2024 and has made impressive strides in human development. PwC predicts Bangladesh to become the 25th largest economy in the world by 2035.
  • Exports, mainly from the RMG sector, have been a vital factor behind the stellar economic growth, The RMG sector accounted for over 80% of total export earnings and ~12% contribution to GDP in 2020.
  • The Bangladeshi economy has benefited from the integration of an increasing number of women into the workforce. Currently, according to World Bank data, ~36% of the female population is engaged in the labour market.

Source: Bangladesh Bank, Statisa, World Bank, LightCastle Analytics, PwC

Policies, Programs, Partnerships – Government interest in FDI

Since 2010, the Government of Bangladesh (GoB) has put forth policy to show their support for foreign investment as well as their dedication to developmental causes and inclusive growth. GoB has committed to diversifying the export basket, put forth development and industrial policy, and passed programs to attract foreign and local investment.

  • GoB has taken the initiative to reach double digits on the Doing Business Index by 2025. A number of policies have been introduced to reach this target:

    • The Public-Private Partnership (PPP) Program launched in 2009
    • The Bangladesh Economic Zones Act of 2010
    • The Industrial Policy Act of 2016
  • Bangladesh Investment Authority (BIDA) has introduced an One Stop Service Center to assist foreign investors.

  • GoB initiated its own public startup support wing, Startup Bangladesh with U$ 60Mn fund to catalyze investments.

Source: LightCastle Analytics Wing, BIDA, BEPZA

Middle and Affluent Class (MAC) population will double to 34Mn in 5 years

The country has a young population with a median age of ~28 years and 62% of the population below the age of 35. With an already large and continually growing middle-class, the domestic market is strong in Bangladesh. Tapping into this new demographic and the consumer spending, it brings is a potential prospect for local and foreign investors.

  • Bangladesh’s rapidly growing economy has spawned an economic class of urbanites, who are upwardly mobile with a growing appetite for consumer spending.
  • This MAC population is young, tech-savvy and optimistic about their future, leading them to spend on living standard enhancing goods and services.
  • The projected MAC population stands at 19 Million as of 2020 and is projected to grow at 10% per annum to reach 34 Million by 2025.

Source: Statista, Bangladesh Bank, Bangladesh Bureau of Statistics (BBS), Boston Consulting Group

Connectivity, Digitization and Urbanization​

The country has a population of 164 Mn and has reached 37% urbanization. Connectivity has reached its peak, with 106% mobile phone connection (172 Mn) and 65% internet penetration (112 Mn) and 60% mobile internet penetration (103Mn), as of Jan 2021.

  • Mobile Financial Services (MFS) has been growing steadily at a 20% CAGR over the last 5 years. Every one out of two persons (99Mn) has an MFS account in Bangladesh.
  • The eCommerce market is expected to grow to U$ 3Bn by 2023. Bangladesh’s eCommerce market stands at U$ 1.6Bn, ranking 46th in the global ranking.
  • The ICT sector has grown by 40% annually since 2010. Over 1,500+ IT companies thrive in the country capturing a significant share in the international markets worldwide, and projected to produce 1% of the country’s total GDP in the next five years.


Source: Bangladesh Bank, Statisa, World Bank, LightCastle Analytics, PwC