Bangladesh eyes bigger slice of $35b Saudi market

Bangladesh Commerce Minister Tipu Munshi on Wednesday inaugurated a three-day expo, titled Bangladesh Product Exhibition 2023, in Saudi Arabia's  Riyadh, which the Export Promotion Bureau (EPB) organised to promote Bangladeshi goods in the middle-eastern nation.

A total of 30 companies, mostly from apparel, pharmaceuticals and leather sectors, have participated in the event to showcase their capacity and competitiveness, officials and participants told.

"Although Saudi Arabia has over 3 crore people, their purchasing power is very high, which is why we believe our export to the country can be equivalent to that of countries having 10 crore consumers," Mr. Tipu Munshi said at the launching ceremony.

"We still export little to the Saudi market, but we are hopeful that we will be able to have a bigger slice here as we are capable of producing quality products at competitive prices," he said and added that the exhibition will play a key role to boost exports to the country.

Mentioning that Bangladesh, with its apparel goods, is the key exporter to the USA, the Minister said, "When we started exporting to the USA, we went from one importer to another just to make our products familiar to them. Now, we are doing similar things here [in Saudi Arabia]. We will also make our position here soon."

He further added that the demand for Bangladesh goods is increasing in Saudi Arabia and exporters should utilise the opportunities. He called for cooperation from the Saudi government.

The exhibition, which will also focus on bringing some Saudi investment to Bangladesh, will continue till 24 February.

Bangladeshi exporters said they look to gain a foothold in Saudi Arabia with seven potential products, including food and beverage, apparel, and jute and leather, products which are now sourced from the global market for $35 billion annually.

According to the International Trade Centre (ITC) data, Saudi Arabia's imports stood at $152.34 billion in 2021. China is the KSA's largest source with $31.07 billion in imports, followed by the USA, UAE, India and Germany.

Bangladesh exported $290 million worth of goods to the gulf country in FY22, with 12 per cent growth year-on-year, according to the EPB. Saudi Arabia is the country's 24th largest export destination.