Prime Highlights:
Saudi Arabia’s Aramco is contemplating a decision to establish a large oil refinery in Bangladesh with which to support the country’s growing demand for petroleum products and regional capacity building.
The Report on Saudi-Bangladesh Economic Engagement Marks Deepening Bilateral Relations, Characterized by Investment Agreements and Setting up of Joint Business Council.
A mooted maritime route between Chattogram and Saudi ports, either Jeddah or Dammam, will further enhance the efficiency of trade and connectivity between the two nations.
Key Background:
Saudi state-owned energy giant Aramco is studying a mega oil refinery project in Bangladesh that will greatly alter the country’s energy sector, said Saudi Ambassador to Bangladesh Essa Al-Duhailan. Presenting the report entitled “Enhancing Saudi-Bangladesh Economic Engagement: Trends, Key Challenges, and Long-Term Growth Prospects,” Al-Duhailan said the project would help meet the increasing demand of Bangladesh for petroleum products while transforming the country into a regional supplier to markets such as China and India.
Al-Duhailan said that the refinery would play a great role in Bangladesh’s energy requirement. He also added that Aramco could also contribute to this project, stressing that the company is willing to invest in it. He also pointed out the potential of opening a maritime route from Chattogram to Jeddah or Dammam that could further enhance bilateral trade between the two countries. Moreover, he said Saudi Arabia’s Red Sea Gateway Terminal operates the Patenga terminal and has an interest in participating in the Matarbari deep-sea port development project.
He further emphasized the economic collaboration between Saudi Arabia and Bangladesh. Increasing investment agreements have been made as well as forming a joint business council. A couple of other big investments were mentioned by Al-Duhailan, one being ACWA Power scouting the possibility of developing a $3.5 billion renewable energy project in Bangladesh.
The report prepared by Bangladesh’s Foreign Ministry yields several options that can further fortify economic cooperation and transcend other challenges that include inefficiencies on the part of bureaucracy and corruption. It assesses opportunities for Bangladesh export in Saudi Arabia and deeper bilateral cooperation in the areas of trade, culture, and tourism. Increased interaction underscores strengthening Saudi-Bangladesh relations where both sides would focus more on creating further opportunities for mutual economic and political benefit.
