Govt approves Commercial Court Ordinance to boost investment in country
The law also permits the establishment of the necessary number of commercial courts, with judges appointed from district judges or additional district judges experienced in commercial law and commercial disputes
The government today approved the draft of the Commercial Court Ordinance 2025, aimed at ensuring Bangladesh's success in the global competition after the graduation from the LDC status and boosting investment by ensuring the timely settlement of commercial disputes.
The Council of Advisers gave the approval at its weekly meeting today (11 December) with Chief Adviser Muhammad Yunus in the chair.
Chief Adviser's Press Secretary Shafiqul Alam, later, briefed the media about the meeting at the Foreign Service Academy this afternoon, explaining that the commercial court is essential as many investors—both foreign direct investors and domestic investors—frequently encounter commercial disputes that require timely settlement.
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The establishment of commercial courts will allow such cases to be resolved quickly, which is expected to improve confidence in the business environment, he said, adding that provisions have been included in the ordinance so that the government can establish more commercial courts at the district level if necessary.
Noting that the establishment of commercial courts is one of the goals set by Bangladesh to graduate from Least Developed Country (LDC) status, Shafiqul Alam said Bangladesh's success in post-LDC global competition will no longer rely solely on tariff advantages.
"Instead, it will depend on the country's capacity to resolve commercial disputes rapidly, predictably, and effectively," he added, adding that, after losing LDC trade benefits, Bangladesh will need deeper investment growth, export diversification, and stronger integration into global value chains.
In this context, contract enforcement and investor confidence will become decisive factors, the press secretary said, adding, the establishment of an effective commercial court will reflect Bangladesh's institutional readiness, reduce the cost and time of doing business, strengthen the rule-of-law perception, attract foreign direct investment (FDI), and improve the country's ability to engage in global economic negotiations on equal terms.
Key features of the ordinance include a clear definition of commercial disputes, encompassing export-related issues, interpretation of business contracts, aviation and shipping transactions and agreements, intellectual property, shareholder, joint ventures, franchises, and partnership-related disputes.
The law also permits the establishment of the necessary number of commercial courts, with judges appointed from district judges or additional district judges experienced in commercial law and commercial disputes.
To expedite hearings, several special provisions have been incorporated, such as suit management hearings and the option to issue judgments based on documentary evidence and arguments rather than oral testimony when applicable.
The law also includes mechanisms for mediation and arbitration to ensure faster case disposal.
The ordinance also incorporates provisions related to cost, interest calculation and the requirement to consult with the Supreme Court in drafting the accompanying rules.
