The Middle Eastern countries are diversifying their investment in multiple markets and multiple sectors beyond the oil business due to the fall in oil price in global market, said R Seetharaman while talking to the Dhaka Tribune in an exclusive interview during his recent visit to Bangladesh.
The top manager inaugurated representative office of Doha Bank in Bangladesh on 8 December. Doha Bank, which was incorporated in 1979, is the third largest local conventional bank by assets in Qatar.
“Because of the fall in oil price, gulf economies faced extraordinary downturn in capital market, liquidity stress and fiscal deficit, said the top manager of Doha Bank.
He continued as saying, “But the economy of those countries are still financially stable as economic fundamental of those is strong and they are diversifying their business beyond hydro companies to produce investment returns.”
Expansionary fiscal policy taken by government of gulf states will give Bangladesh opportunity to export more human capital. Non hydro company is marginalised here with 1% growth and non hydro companies are growing with 7% growth and that is exactly to open up opportunity for Bangladesh, he added.
He said: “Non hydro companies are here to grow and countries like Qatar are working on projects worth US$40 billion this year mainly in transport, communication and construction sector.”
Governments of Gulf states have undertaken expansionary fiscal policy framework worth hundred and seventy billion dollars which will need more skilled and non skilled labours to implement the framework, he stated.
As Bangladesh is now making $15 billion remittance annually which is likely to grow further. The annual trade between Bangladesh and gulf blocks is $3.5 billion which is expected to grow further, he hoped.
He said: “Saudi Arab is interested to invest in Bangladesh in education and agriculture side. It already invested in construction of hospital in Bangladesh which will be very useful for the local community. Saudi Bank is coming up with investment in construction including bridges in Bangladesh.”
Not only Saudi Arabia but also other gulf states are also coming up with huge investment in Bangladesh, he added.
Doha bank is now here and also looking for exporting LNG into Bangladesh from Qatar. Kuwait is also coming up with public fund to invest in Bangladesh, he said.
Praising the economic prgress of the country, R Seetharaman also remided that Bangladesh is an emerging economy as the growth over 7% is significant, inflation is less than 6%, current account deficit getting marginalised and could be surplus in coming days. The country now ranks the 6th position in global competitive investment index by World Economic Forum which is a good indicator that attracted gulf countries to come up with investment.”
“We have ample of opportunities to support to the banking system here in Bangladesh. We are also going to work with the local banks to invite business community here to invest in gulf states. There is specific incentives disigned for small and medium investors in Qatar. Doha bank will be guarantee 87% of credit risk for the SMEs want to invest in Qatar, concluded R Seetharaman.
Thursday, March 27, 2025
