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A Saudi company, Saudi Engineering Dimensions, will invest US$ 35 million in the country for producing transformers and other electrical products, considering the market potential here, officials said.
The investment will take place under a recent agreement signed with Bangladesh Steel and Engineering Corporation (BSEC).
The BSEC, a state-run company of Bangladesh under the Ministry of Industries (MoI), will provide land and other logistics supports to the Saudi company to set up facilities for producing electricity devices.
The company will set up a plant on 21-acre of unused land owned by General Electric Manufacturing Company Limited (GEMCO) in Chattogram.
Meanwhile, a high- powered delegation from the MoI will fly to the Kingdom of Saudi Arabia (KSA) during the second week of this month for visiting the Saudi company's plant and activities.
The delegation will discuss with the company officials about starting the process of investment in Bangladesh, an additional secretary of the MoI told the FE on Sunday.
He said that industries secretary Md Abdul Halim will lead Bangladesh delegation to the KSA.
Bangladesh and Saudi Arabia have been maintaining good relationships for a long time. Saudi Arabia is one of the key development partners of Bangladesh.
The country's huge population, domestic demand and skilled manpower are among the vital factors that have created interest among the Saudi investors to invest in Bangladesh, a director of Dhaka Chamber of Commerce Industry (DCCI) told the FE.
A director of BSEC, who is expected to visit the KSA with the government delegation, told the FE that the Saudi company may start shipment of equipments for setting up the plant on the land of GEMCO Ltd in Chattogram. The GEMCO is an enterprise of the MoI.
The KSA has proposed the government of Bangladesh to invest several billions of dollars in more than 30 projects. The development came following Prime Minister Sheikh Hasina's visit to the Kingdom in October last year.
The oil-rich country wanted to invest in commercially viable projects in Bangladesh, targeting oil and gas, fertiliser, cement, power plants, solar energy, and physical infrastructures, according to Bangladesh Investment Development Authority (BIDA).
The industries ministry official further said that the Saudi Engineering Dimensions has also expressed interests for setting up a modern cement factory in Chhatak upazila in Sunamganj.