UAE firms look to more investments in South Asia

Global ports operator DP World is keen to invest in Bangladesh's port projects, the South Asian nation's ambassador to the UAE said on Saturday.

Speaking to Khaleej Times on the sidelines of a conference in Dubai, Muhammed Imran said: "DP World has shown interest to invest in Bangladesh. Investments from DP World are at an early stage and the company is submitting proposals. DP World is good at managing the ports. Plus, RAK Ceramics also has interests in Bangladesh. There is a lot of potential to boost trade and investments between the two countries."

DP World had reportedly expressed interest to run Chittagong Port's New Mooring Container Terminal and Bay Terminal.

The South Asian country has two ports operational and one is under construction.

Bilateral trade between the UAE and Bangladesh totalled $1 billion last year and Imran expects it to reach $4 to $5 billion in the next five to 10 years. Bangladesh exports food items, handicrafts, garments, etc to the UAE and imports petrochemicals in return.

"We have to improve people-to-people contact. That is very important. Don't look at Bangladesh for just supplying labour; we are a large pool of professionals," Imran said on the sidelines of the Bangladesh Economic Forum, which saw the participation of a number of leading Bangladesh businessmen from the UAE.

The forum also discussed the opportunities the South Asian country offers for investments in diverse sectors.

Imran said the Bangladesh government has announced the establishment of 100 economic zones, where foreigners, including Emiratis, could invest in 100 per cent foreign-owned export-oriented industries and benefit from lower cost of licensing, land and production and from higher margins and duty-free export quota access to a number of countries in the world.

With a GDP of $687.14 billion, Bangladesh is the world's 32nd-largest economy. According to the International Monetary Fund, the Bangladesh economy is projected to grow to $1,324 billion in 2030 and $3,064 billion in 2050.

It will grow to the world's 28th-largest economy by 2030 and 23rd by 2050, according to IMF forecasts. Its GDP is projected to grow 8 per cent this year and 9 per cent next year.

"Bangladesh is undergoing a transformation from a low-income to a middle-income economy. The South Asian country continues to generate strong growth - projected at around 7 per cent for 2018 - driven by consumer spending and investment," the IMF had said in its June 2018 report.

A.K.M. Rafique Ahammed, commercial counsellor at the Consulate-General of Bangladesh in Dubai, said trade between the UAE and Bangladesh grew up to 150 per cent over the last five years, though in the past two years it has dipped.

"Our exports are declining. Last year, we couldn't achieve our target and exports were $50 million less. But exports of even other Asian countries' have also fallen," he added.