Cabinet approves FDI incentive policy to encourage expatriates to attract investment in Bangladesh

The cabinet has approved the Foreign Direct Investment (FDI) Incentive Scheme Policy, 2026, aimed at encouraging Bangladeshi citizens, including expatriates, to attract foreign direct investment into the country.

The policy, formulated at the initiative of the Prime Minister's Office, was approved at the ninth cabinet meeting held tonight (4 June), chaired by Prime Minister Tarique Rahman, according to a press release from the Cabinet Division.

The Cabinet Division said the scheme is intended to incentivise Bangladeshi citizens at home and abroad to contribute to bringing FDI into Bangladesh.

The draft policy was originally prepared during the tenure of the interim government. Under that draft, Bangladeshis who successfully attract new foreign direct investment in the form of equity participation would be eligible for a financial incentive.

The draft proposed a 1.5% incentive for bringing new equity-based FDI into Bangladesh through foreign investors. Any Bangladeshi citizen, whether residing in the country or overseas, would be eligible for the incentive.

It also proposed the creation of an initial $7.5 million fund to finance the scheme. The amount represented around 1.25% of Bangladesh's total equity FDI inflow during fiscal year 2023-24, when the country received approximately $600 million in equity-based foreign investment.

According to the draft, a minimum of $1 million in new equity investment would be required to qualify for the incentive. However, the Ministry of Finance had recommended setting the incentive rate at 1% for all eligible investments.

The cabinet also approved the draft Bangladesh Medical University (Amendment) Act, 2026.

The amendment, proposed by the Health Education and Family Welfare Division, seeks to expand the scope of healthcare services, medical education and research at Bangladesh Medical University.

Under the proposed changes, the university will be allowed to establish or participate in both for-profit and non-profit companies or organisations and acquire shares in such entities.

The cabinet said amendments to the Bangladesh Medical University Act, 1998, are necessary to facilitate these provisions and broaden the university's institutional and research capabilities.

Meanwhile, the cabinet also congratulated Khalilur Rahman on his election as president of the 81st session of the United Nations General Assembly (UNGA).