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[🇧🇩] Can Bangla-Saudi Relation be elevated to Strategic Level?

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[🇧🇩] Can Bangla-Saudi Relation be elevated to Strategic Level?
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Shifting trajectories of Saudi-Bangladesh ties
Philip Sarker
08 Apr 2022 00:00:00 | Update: 08 Apr 2022 09:23:28

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The recently concluded visit of the Saudi Foreign Minister, Prince Faisal Bin Farhan Al Saud, along with his entourage, to Bangladesh, provided a fillip to the prevailing fraternal relations between Bangladesh and Saudi Arabia. Amid the growing geopolitical irritants of the Russia-Ukraine crisis, the first-ever ‘high-level political dialogue’ between Dhaka and Riyadh manifests the revitalization of the existing political coalition and demonstrates a ‘symbolic gesture’ to Saudi Arabia’s “reprioritization of Asia” in its foreign policy. Such a political climate makes the likelihood of building a relationship towards a “comprehensive partnership with a targeted roadmap”. Bangladeshi Foreign Minister AK Abdul Momen proposed to tap the untapped potential and create a “win-win situation” during the meeting.

A snapshot of the visit

The Prince’s visit followed the invitation of Bangladesh’s Foreign Minister AK Abdul Momen. While he paid a courtesy call visit to Prime Minister Sheikh Hasina at Ganabhaban, Prince Faisal hailed the tremendous economic expansion of Bangladesh. He expressed Riyadh’s willingness to explore new contours of economic cooperation. Meanwhile, the Bangladesh prime minister has sought larger investment from Saudi Arabia, particularly in the special economic zones of Bangladesh.

“Bangladesh is ready to extend support to (Saudi Arabia’s) investors, including allocating dedicated land for them in the special economic zones,” she said.

The main agendas of the consultation meeting were trade and investment, skilled labour recruitment, hajj management, health, education, climate change, ICT, and tourism. Turning to trade and investment, the Saudi Arabia diplomat emphasized the need to enhance collaboration and proposed launching a joint business forum and exchanging business delegations between the two countries. In addition, he expressed Saudi investors’ desire to invest “extensively” in Bangladesh and requested policy and institutional support in investment from Bangladesh.

During the meeting, Momen also pointed out six potential areas for future engagement, particularly collaboration and partnership with Saudi Green Initiative, investment in Bangladesh Exclusive Economic Zone in Chattogram, investment in the IT sector and hotel and tourism industry, food security programme by contract farming in third countries and skills training programme in Bangladesh at Saudi initiative. At the end of the consultation, two instruments - an agreement on cooperation and mutual assistance in customs matters and an MoU on cooperation between the foreign service academies of the two countries were signed by the leaders.

Being one of the pillars of Islam, the Hajj – the pilgrimage to Mecca – has got special dignity and immense socio-economic and cultural impacts on Bengali Muslims. Every year thousands of Bangladeshi pilgrims visit Saudi Arabia to perform Hajj. As a symbol of Fraternity, the Saudi government granted 100% immigration clearance from Bangladesh, which previously had to be done in KSA. Thus, the harassment of Bengali Hajis in a foreign land will be significantly reduced. Bangladesh also expressed its eagerness to join Saudi’s “Green initiative”, the largest reforestation program in the world, aiming to plant a total of 50 billion trees inside and across the neighboring Middle East countries, by providing saplings as well as assistance for maintenance, to combat the effects of climate change.

The growing reciprocity

Demonstrating the miraculous economic growth over the past decades, Bangladesh transformed from a “bottomless basket” into a “South Asian miracle”. It plans to graduate from the Least Developed Countries (LDCs) category to a developing one by 2026. To avoid the ‘middle-income trap’ and escape from the ‘Dutch Disease’ Bangladesh needs more investment to diversify its economic engagements. These aspirations justify participation in rapidly expanding trade and economic collaboration with key partners such as Saudi Arabia. The evidence of growing reciprocity is also reflected in the recent press conference of Saudi Ambassador to Bangladesh, Essa Yussef Essa Al Dulaihan, that Saudi Arabian Investment Minister Khalid al-Falih will lead a delegation of 22 companies to explore investment opportunities in Bangladesh after the Ramadan.

Additionally, the trade between the countries is in a crescendo over the years, which stood at 1.3 billion dollars in 2021. Beyond economic and cultural exchange, security cooperation between the countries is depicted in recent years. In conformity with the government’s “zero tolerance” policy against terrorism and violent extremism, Bangladesh has joined the Saudi-led military alliance IMCTC, a pan-Islamic unified front of 41 countries. Expressing satisfaction at the close alignment of positions in all major global issues, both leaders affirmed to continue this collaboration ahead.

The jewel in the crown of Dhaka-Riyadh relations is the 2.3 million vibrant Bangladeshi diaspora community who are incessantly contributing to Saudi’s “Vision-2030” as well as many development pathways, while simultaneously shouldering the economic pillar of Bangladesh by providing economy-boosting remittance. Even during the pandemic, Saudi employed around 1.61 lakh Bangladeshi workers, rather than resuming the labour market as others did, in 2020. As Bangladesh is currently enjoying the era of demographic dividend, Bangladesh needs to export more skilled and unskilled labourers to KSA from its vibrant labour market driven by its youth. According to the data of BMET, in January, a total of 105322 Bangladeshi workers to overseas countries. Of them, 71,172 workers were sent to Saudi Arabia, 65 per cent of total overseas employment. The outflow of workers would gather steam in the coming years as Saudi Arabia is in constant need of workers due to many mega infrastructure development projects is underway. Both the states are now working on addressing the challenges including the “middlemen” or “sub-agents” trap.

Since the inception of the Rohingya influx, Saudi Arabia continuously keep supporting Bangladesh, from the political and humanitarian ground, in the form of aid, assistance and remained vocal in global and regional forums. In continuation to that approach, Saudi Arabia has promised financial support to the genocide case in the International Court of Justice (ICJ).

The war in Ukraine has come to the world in a wholly unanticipated form—in the context of intensity, barbarism, and global response—much in a similar posture of Covid-19. However, the effects of this war are much awful and devastating for the lower and middle-income countries that are likely to suffer mostly and abruptly, as typically expected, for the upshot of food and energy price hike — along with supply shortages— which pushes up the inflation and food insecurity. In these circumstances, to dodge the socio-financial turbulence and to maintain stability in the oil market, the KSA gave the commitment to provide an uninterrupted supply of oil to Bangladesh.

The current geopolitical metamorphism of world context has made the KSA, an ally of America, yield a distinct diplomatic approach as well as to reset its priorities, putting the intra Middle-Eastern skirmishes and Superpower dizziness behind. Saudi Arabia may account for the rise of the world’s fastest-growing region Asia for strategic rebalancing. In this context, Bangladesh could be fitted to Saudi’s new foreign policy context of hedging as in the growing geopolitical prominence of the Indo-Pacific, Bangladesh has become crucial both in strategic as well as geopolitical calculations.

The writer is an independent researcher.
 
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Saudi co gets all-clear to operate Patenga container terminal
Seaborne trade expected to ease, expand
DOULOT AKTER MALA
Published :
Apr 19, 2024 00:43
Updated :
Apr 19, 2024 00:43

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Decks are now all cleared for operation of the Patenga Container Terminal (PTC) with belated declaration bringing its designated import-export area under customs domain.

With Wednesday's customs all-clear, officials said, the Chattogram Port Authority (CPA) would be able to proceed on operationalising container terminal nearby the seaport under a joint venture with a Saudi company.

The first PPP under port sector's backup facility and its adjacent area get customs approval for export-import operations, amid much expectation from businesses of a breakthrough in foreign-trade shipments.

Construction of the container terminal, inaugurated by the Prime Minister in November 2023, was completed one and a half years ago, at a cost of Tk 12.29 billion.

The customs wing of the revenue board now issued a gazette, dated April 17, 2024, defining PCT and its adjacent back-up area as South Container Yard limit for the loading and unloading of goods.

According to the statutory regulatory order (SRO), signed by second secretary of customs Omar Mobin, the customs would have "full control on the customs station of PCT while CPA would control the goods godowns and security of goods".

On December 2023, the CPA signed a US$ 170-million contract under public-private partnership (PPP) paradigm with Red Sea Gateway Terminal International (RSGTI) of Saudi Arabia.

Earlier, in a letter, CPA secretary Md Omar Faruk had requested the National Board of Revenue (NBR) to allow the PTC its backup facility and adjacent area as bonded area to start work to make it operational.

Construction of the 600-metre-long PCT in 26 acres of land, located in-between Chittagong Dry-dock and Chittagong Boat Club, has raised new hopes among the businesses about expediting cargo-release process without congestion at the seaport which now begins to take regional trade load, too.

Having three jetties and an annual capacity of handling 0.5 million TEUs of containers, the PCT is expected to ease pressure on Chattogram Customs Houses.

In June 2017, the PCT got government approval and its construction completed in June 2022.

Bangladesh Shipping Agents Association (BSAA) Chairman Syed Md Arif says the PCT would facilitate import-export as it has capacity of large ship anchorages and round-the-clock navigation.

"The PCT was supposed to start operation from this month and one of our members has applied for using the terminal this month, which was not approved as the Saudi contractor may not fully be prepared for handling the geared ships," he says for an instance of interest in business circles.

The government has leased the maiden private port terminal for 22 years to the Saudi firm.​
 
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Bangladesh, Saudi Arabia complete feasibility study on urea fertiliser factory

The Saudi assistant minister for oil and gas informs Salman F Rahman about the feasibility study during a meeting in Riyadh
BDNEWS24.COM
Published :
May 01, 2024 23:40
Updated :
May 01, 2024 23:40


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Bangladesh and Saudi Arabia have wrapped up a feasibility study on a urea fertiliser factory as part of a joint venture.

Mohammed Alibrahim, the Saudi assistant minister for oil and gas, told Prime Minister's Adviser on Private Industry and Investment Salman F Rahman about the study at a meeting in Riyadh.

They discussed the Saudi-Bangladesh partnership at Alibrahim's office on Tuesday night, the adviser's public relations office said in a statement on Wednesday.

The Saudi assistant minister said they were working on technical matters after completing the study and will meet Bangladesh's technical team now.

He was keen on energy cooperation with Bangladesh.

Alibrahim told Salman that the Saudi government was considering Bangladesh's proposal to buy crude oil under a delayed payment system.

They also discussed a DSP fertiliser plant.

Salman also met Saad Alkroud, chief of staff at Saudi Public Investment Fund and secretary general of its board of directors, who praised the Bangladesh government for the country's economic development.

He expressed satisfaction over the investment of Saudi firm Red Sea Gateway Terminal in Patenga port.

The Saudi official handed Salman a list of 80 companies of the Gulf kingdom that are keen on investing in Bangladesh.

Alkroud hoped that the PIF will join Bangladesh's journey towards development through its company.

Salman held the meetings after attending a World Economic Forum session in Riyadh.​
 
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Dhaka, Riyadh to hold political consultation July 1
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Dhaka and Riyadh will hold the second political consultation on July 1 when they will discuss the upcoming visit of Saudi Crown Prince Mohammed bin Salman to Bangladesh as well as Saudi investment, trade, manpower, and Rohingya crisis.

Saudi Foreign Minister Prince Faisal bin Farhan Al Saud and Bangladesh Foreign Minister Hasan Mahmud will lead the respective sides in the consultation in Riyadh, foreign ministry sources said.

Private Sector Adviser to Prime Minister Salman F Rahman, Additional Foreign Secretary (bilateral) Md Nazrul Islam, Bangladesh Ambassador to Saudi Arabia Mohammad Javed Patwary, Director General of West Asia Wing Shafiqur Rahman and Director Nafisa Monsur will be part of Bangladesh delegation.

"Bangladesh side will be highlighting the needs for investment, protection of the Bangladeshi migrants in the Kingdom, support in addressing Rohingya crisis," a foreign ministry official said.

He said many Saudi companies are keen to invest in Bangladesh and the announcements may come during the visit of the Saudi crown prince later this year.

Saudi Arabia may also raise the issue of renewing passports of about 69,000 Rohingyas who went to the Gulf country in the past.

In early May this year, Home Minister Asaduzzaman Khan told media that Dhaka will renew passports of the 69,000 Rohingyas considering that they might be deported otherwise.

"Bangladesh will seek increased international pressure on Myanmar for repatriation of over a million Rohingya," a source said.

The two countries will also discuss the regional conflicts in the Middle East including Israel-Hamas war in Gaza, cooperation among the Organization for Islamic Cooperation (OIC), among others.​
 
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Saudi Arabia should invest in Bangladesh. Bangladesh has a large human resource pool that can be used in Saudi Arabia.
 
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Saudi Arabia should invest in Bangladesh. Bangladesh has a large human resource pool that can be used in Saudi Arabia.
Though Saudi Arabia has expressed its intention to invest in Bangladesh, they have failed to keep their promises so far. I don't expect any investment from Saudi Arabia because their promises to invest in Bangladesh are just lip service.
 
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Though Saudi Arabia has expressed its intention to invest in Bangladesh, they have failed to keep their promises so far. I don't expect any investment from Saudi Arabia because their promises to invest in Bangladesh are just lip service.
What can Bangladesh offer Saudi Arabia? In this transactional world, its about what can you offer the other party.
 
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Bangladesh, KSA for increasing Saudi investment
Bangladesh Sangbad Sangstha . Dhaka 02 July, 2024, 00:17

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Dhaka and Riyadh emphasised boosting Saudi investment in Bangladesh during the second round of political consultations between the two countries held on Monday in Saudi Arabian capital.

Bangladesh foreign minister Hasan Mahmud and his Saudi Arabian counterpart, prince Faisal bin Farhan, led their respective delegations during the consultation meeting, a foreign ministry's press release said in Dhaka.

The discussions focused on enhancing Saudi investment in Bangladesh's special economic zones and exploring opportunities for Saudi Arabian funds to be deposited in Bangladesh's offshore accounts.

Both leaders underscored the necessity of energising the activities of the Bangladesh-Saudi Arabia Joint Business Council to boost commercial relations between the two nations.

Prime minister's private industry and investment adviser Salman F Rahman, Bangladesh ambassador to Saudi Arabia Mohammad Javed Patwary, additional foreign secretary Md Nazrul Islam, foreign ministry's director general (West Asia) Md Shafiqur Rahman, and director general (FMO) Md Arif Nazmul Hasan, as well as Saudi officials, were present at the meeting.

The two foreign ministers also discussed special privileges for Bangladesh in importing oil from Saudi Arabia.

Hasan expressed gratitude to Saudi Arabia for hosting and providing employment to nearly three million Bangladeshis.

There was a fruitful discussion on forming a joint task force to bring more transparency in the export of Bangladeshi manpower to Saudi Arabia and to stop workers' harassment by vested interests, said the release.

Hasan requested special registration opportunities for Bangladeshi expatriates doing business in Saudi Arabia.

The Saudi foreign minister assured cooperation when Bangladesh sought assistance in the repatriation of the displaced Rohingyas to Myanmar.

They also stressed the importance of united efforts by the Muslim world to end Israeli brutality in Gaza.

During the one-and-a-half-hour cordial meeting, they also discussed the upcoming visit of Saudi crown prince and prime minister Mohammed bin Salman to Bangladesh.

The two foreign ministers also decided to adopt a joint action plan to properly celebrate the golden jubilee of Saudi-Bangladesh diplomatic relations next year.

The meeting also decided to elevate the meeting of the Bangladesh-Saudi Arabia Joint Commission to the ministerial level.

After the meeting, a luncheon was hosted by the Saudi foreign minister in honour of his Bangladeshi counterpart.​
 
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