British businesses are showing growing interest in investing in Bangladesh, driven by expanding trade ties and opportunities in sectors like renewable energy, technology, and infrastructure. In an exclusive interview, Bangladesh’s High Commissioner to the United Kingdom, Abida Islam, highlighted the deepening economic partnership between the two countries, alongside new initiatives aimed at attracting UK investment and expanding bilateral trade.
In an exclusive interview, Bangladesh’s High Commissioner to the UK, Abida Islam, discusses trade, investment, climate cooperation, and the future of Bangladeshi students in Britain.
Her detailed interview is given below:
Q: What is the current trade volume between Bangladesh and the UK, and what are the future targets?
Abida Islam: Bilateral trade between Bangladesh and the UK now exceeds USD 6.0 billion. Bangladesh exports about USD 4.5 billion worth of goods to the UK, primarily ready-made garments (RMG), while UK exports to Bangladesh stand around USD 500 million. Looking ahead, our exports are projected to grow to USD 6.0 billion over the next five years, aiming for a 5–7% annual increase. Beyond garments, we are working to diversify into pharmaceuticals, IT, and agro-processing while encouraging more UK investment.
Q: What initiatives are being pursued to strengthen economic ties?
Abida Islam: Bangladesh and the UK are focused on strategic initiatives like expanding One-Stop Services for investors, showcasing products in London, and exploring a trade office in Ireland. We're enhancing financial cooperation through remittance incentives and introducing an Islamic Bond Scheme in GBP for our diaspora. Improving air connectivity, such as the proposed Sylhet–Stansted direct flight and a dedicated "Mango Cargo" service, is also a priority.
Q: What are your views on Bangladesh’s Blue Economy prospects?
Abida Islam: The Blue Economy holds vast untapped potential for Bangladesh, though it currently contributes just 3% to GDP. Sectors like marine fisheries, aquaculture, biotechnology, and ocean renewable energy offer growth opportunities. We also aim to harness non-living resources like seabed minerals and oil. Our strategic location can position us as a regional maritime hub, but sustainable development through marine education and environmental planning is essential.
Q: How do you assess British investment interest in Bangladesh?
Abida Islam: UK investors see strong potential in Bangladesh, especially with governance improvements under the interim government led by Nobel Laureate Dr Muhammad Yunus. Over the past two years, the UK has been our top investor, drawn by our expanding middle class and strategic location. Key sectors attracting British interest include renewable energy, infrastructure, and technology. Continued reforms should encourage further investment.
Q: How can the UK support Bangladesh in climate change mitigation?
Abida Islam: Bangladesh is highly climate-vulnerable, and our partnership with the UK is vital. The 2023 Climate Accord strengthened our collaboration on adaptation and resilience. The UK’s leadership in shaping the Glasgow Climate Pact has been valuable, and we hope to work together on protecting ecosystems, expanding nature-based solutions, and mobilising climate finance for regional projects like the Global Centre on Adaptation in Dhaka.
Q: What is the outlook for Bangladeshi students in the UK?
Abida Islam: The UK remains a preferred destination for Bangladeshi students. Scholarships like Chevening, Commonwealth, and GREAT help many pursue world-class education. However, rising costs and recent visa restrictions have impacted student numbers. Still, UK degrees offer significant career benefits, and I believe the UK will remain a top choice for Bangladeshi students.
Q: How do British citizens view Brexit five years on?
Abida Islam: Brexit remains divisive in the UK. Polls suggest a majority view Brexit’s impact negatively. Although Britain has gained legislative autonomy, economic challenges persist, with a 4% GDP loss and export reductions. For Bangladesh, the UK’s Developing Countries Trading Scheme (DCTS) has ensured continued market access, but we face new customs and regulatory hurdles. Overall, Brexit’s long-term effects are still unfolding.
Q: Is the Iran-Israel conflict impacting Bangladesh’s economy?
Abida Islam: Yes. Global conflicts are pushing up commodity prices and disrupting supply chains, directly affecting Bangladesh’s economy. Our recovery from COVID-19 and the Ukraine crisis was already fragile when Middle East tensions added further pressure. Stability in global markets is essential, and Bangladesh firmly advocates for peaceful solutions, especially in the Middle East.
