Bangladesh to discuss offshore banking opportunities with Saudi Arabia: Foreign Minister

Foreign Minister Hasan Mahmud on Sunday said Bangladesh will discuss financial sector cooperation with the Kingdom of Saudi Arabia (KSA), focusing on attracting deposits from Saudi companies into offshore banking accounts.

“If they want to invest in the financial sector, it will be discussed. They keep their money in the USA and Europe. Bangladesh has opened a window. Any foreign company and foreign individual can keep their money in Bangladesh’s offshore accounts. This issue, among others, will be discussed,” he said.

The foreign minister made the remarks while responding to a question as he is scheduled to attend the second political consultations with the Saudi side in Riyadh tomorrow, reports UNB. 

Foreign Minister Hasan and Saudi Foreign Minister Prince Faisal bin Farhan Al Saud will lead the Bangladesh and Saudi delegations, respectively, at the high-level meeting that will be held at the Saudi Ministry of Foreign Affairs.

Offshore banking is increasingly becoming a key window for banks in Bangladesh to facilitate investments and international trade by attracting deposits in foreign currencies, and deposits of offshore banking will be a major source for US dollars.

“We have opened a new window. We want to make it popular,” the minister said, adding that there are countries where such deposits are made by foreign companies and individuals.

In March this year, the Offshore Banking Act, 2024, was passed in Parliament as part of a stated objective to enhance the country’s reserves of foreign currency and attract foreign investment.

The Bangladesh Bank has relaxed rules and policies to allow both Bangladeshis and foreign nationals to avail of the service.

Responding to a separate question, the foreign minister said the size of the national budget has been increased by 12 times since 2009, while the budget implementation rate is around 92-96 per cent.

He said a section of people always describe the budget as “ambitious” and impossible to implement, though reality shows the opposite with a higher implementation rate.

Hasan said the government led by Prime Minister Sheikh Hasina has significantly reduced foreign dependency, which was around 50 percent during BNP’s tenure. “Today, it is 15 to 20 per cent only.”

He said Bangladesh is now in a position to say no to foreign loans, but sometimes it needs to take loans for a number of reasons.

The foreign minister said Bangladesh is a partner country of the World Bank and Asian Development Bank and other financial institutions which have certain allocations for Bangladesh as a member country. “Bangladesh’s development is now appreciated globally.”