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

[Saif]

Saudi issues visas up to 6,000 Bangladeshi workers

Saudi Arabia has increased the number of visas it grants to Bangladeshi workers, in line with the implementation of its ambitious development plan. According to Dubai-based Gulf News, the country is currently issuing between 4,0000 to 6,000 labour visas to Bangladeshis daily, with the possibility

thefinancialexpress.com.bd

Saudi issues visas up to 6,000 Bangladeshi workers
FE ONLINE DESK
Published :
Dec 17, 2024 23:10
Updated :
Dec 17, 2024 23:10

Saudi Arabia has increased the number of visas it grants to Bangladeshi workers, in line with the implementation of its ambitious development plan.

According to Dubai-based Gulf News, the country is currently issuing between 4,0000 to 6,000 labour visas to Bangladeshis daily, with the possibility of further increases shortly.

Last month, Saudi Arabia recruited 83,000 workers from Bangladesh, marking the highest number of recruitments from any country in a single month, reports bdnews24.com.

This recruitment drive is part of the country's focus on executing its “Vision 2030” development plan.

As part of the plan, Saudi Arabia is preparing for major events such as the 2034 FIFA World Cup and the 2030 Riyadh Expo, alongside large-scale projects such as the construction of airports, railways, and stadiums.

These initiatives have significantly increased the demand for workers.

Additionally, Gulf News reported that Saudi Arabia recently donated 372 tonnes of meat to strengthen ties with Bangladesh.

The foreign ministry said the meat will be distributed to orphanages, religious schools, and those in need across the country.​

 

[Mb444]

BD needs to explore ways of increasing its exports to SA. We have a ready made market there- our expat community.

At this point we can only offer unlimited labour to SA, which is something they sorely need.

They have not really invested in BD, which is a shame but probably is failure in BD marketing itself.

One potential point of engagement could be in oil exploration …. Offer them a joint venture…they may bite

 

[Bilal9]

BD needs to explore ways of increasing its exports to SA. We have a ready made market there- our expat community.

At this point we can only offer unlimited labour to SA, which is something they sorely need.

They have not really invested in BD, which is a shame but probably is failure in BD marketing itself.

One potential point of engagement could be in oil exploration …. Offer them a joint venture…they may bite

We have a very good market for our apparel to their market for a while now. Most of the wholesalers and retailers who are importing these items to Saudi Arabia are also Bangladeshi business people who have been established there for a while. In Ramadan, if you go to the nightly open air Swap meets after midnight, most of the clothing sold there are our exports.

 

[Saif]

We have a very good market for our apparel to their market for a while now. Most of the wholesalers and retailers who are importing these items to Saudi Arabia are also Bangladeshi business people who have been established there for a while. In Ramadan, if you go to the nightly open air Swap meets after midnight, most of the clothing sold there are our exports.

Aside from exporting garments, we should pursue Saudis to invest in our hydrocarbon and defense sectors. We are totally depended on America for hydrocarbon exploration. This needs to be changed. And also our defense sector can be greatly benefitted if Saudis invest in weapons manufacturing in Bangladesh. BOF (Bangladesh Ordnance Factory), BMTF (Bangladesh Machine Tools Factory), KSY (Khulna Shipyard), and Narayanganj Shipyard are some of the potential areas where we should draw Saudi investment. What do you say?

 

[Krishna with Flute]

What are the areas where strategic partnerships can happen.

 

[Bilal9]

What are the areas where strategic partnerships can happen.

Crude refining (production of ethylene glycol and terephthalic acid), leading to derivatives like PET chips and polyester staple fiber, production processes which require large capital outlays. The downstream industries in Bangladesh are textile processes already present in huge scale. But process changes will be needed to convert from Cotton currently to PET fiber processes (polyester spinning, weaving, apparel production etc.) which Bangladesh is starting to develop because most of Bangladesh exports are currently cotton-based. Alongside apparel, specialized technical fabric (for outdoor use such as tents) and mock-cotton hollow-fiber oriented products for home textiles will also be a target. This could triple Bangladesh exports and expansion is already starting to take shape.

Bangladesh is aiming for number one spot in apparel production (currently number two) but it will be a long slog because of China's size and strength. Both can exist as textile sources as this is not a zero sum game. China will slowly move to higher level and higher value addition products and Bangladesh will dominate the lower end.

There are non-textile areas too - shipbuilding comes to mind as @Saif suggested.

Bangladeshi shipbuilders and yards are already supplying gulf and middle east markets in large measure.

 

[Bilal9]

Aside from exporting garments, we should pursue Saudis to invest in our hydrocarbon and defense sectors. We are totally depended on America for hydrocarbon exploration. This needs to be changed. And also our defense sector can be greatly benefitted if Saudis invest in weapons manufacturing in Bangladesh. BOF (Bangladesh Ordnance Factory), BMTF (Bangladesh Machine Tools Factory), KSY (Khulna Shipyard), and Narayanganj Shipyard are some of the potential areas where we should draw Saudi investment. What do you say?

All these are potential areas of investment but I see Polyester Staple fiber projects and shipbuilding as the most promising, they are strategic for our national development. The first needs massive capital outlay and the two main ingredients (ethylene glycol and terephthalic acid) both come from Saudi Arabia (SABINCO being a major player) which will be exported to Bangladesh to be converted to Polyester Staple fiber.

The second is shipbuilding - where massive amounts of skilled labor is needed. Bangladesh can specialize in smaller coastal and specialized logistics and fishery ships which India, China or Vietnam will find hard to compete in.

I am not so sure Saudis will be interested in investing in military production - that will be better directed toward companies like NORINCO maybe. China has perfected low cost (But high quality) defence products.

 

[Mb444]

Saudi government is trying to diversify it’s economy.

Its primary strategy has been to invest abroad. Given where BD was it is not a surprise that SA did not invest because as an investor it sought to invest in tech and in stable and growing stockmarkets. BD still ranks as an emerging market and the inherent risk that implies.

However oil remains SA economies mainstay. Because they have such high reserves they have not bothered to explore beyond their land border with much vigor. But here I think we can speak to SA. Ask them to explore oil reserves in the Bay. Along with SA manifa bay and Red Sea project a bengal exploration arm will deliver cost reduction through economies of scale in the immediate term to them . In the medium term huge profit that is to made with such venture.

I believe such a proposal can be win-win for both nation but will require proactive action from BD.