Bangladesh Investment Summit 2025: Vandalism, looting couldn’t have come at a worse time

As Bangladesh hosts its investment summit, an ambitious initiative to showcase its burgeoning potential in renewable energy, digital economy, textile and apparel, healthcare and pharma, and agro-processing, a wave of vandalism targeting alleged stores of Israel-affiliated international brands has marred the narrative of progress. 

On 7 April, a section of hooligans broke off from the peaceful pro-Palestine protesters to vandalise and loot outlets of KFC, Domino's Pizza, Bata, Puma and others in Sylhet, Chattogram, Khulna, Barishal, and Cumilla under the pretext of debatable Israeli affiliation.

While not representative of the nation as a whole, the unrest has raised critical questions about political stability, public safety, and the government's ability to safeguard investors' interests — key concerns for the global business community.

"This is very unfortunate. Investment summit or not, such acts of vandalism should not happen. The government should handle this boldly. This is harming the image of Bangladesh. Such events are not our reality; this is not Bangladesh."

Abul Kasem Khan, director, AK Khan and Co Ltd and Chairperson, BUILD

A blow to Bangladesh's investment narrative

The timing of the incident could not have been more inopportune. The Bangladesh Investment Development Authority (BIDA) has worked tirelessly to position the country as an emerging foreign direct investment (FDI) hub, leveraging its strategic location, youthful workforce and competitive manufacturing base. 

The flagship event promised to spotlight opportunities across five high-growth sectors, drawing delegates from across the globe. Yet, images of shattered glass facades at KFC outlets and looted Bata showrooms have competed with the polished presentations of economic potential, threatening to undermine months of careful planning.

BIDA Executive Chairman Chowdhury Ashik Mahmud Bin Harun captured the frustration succinctly, "At a time when we are hosting a summit to showcase Bangladesh as an investment destination, it is unfortunate to see our countrymen setting such deplorable examples. Many of these businesses were local investors; some were foreigners who believed in Bangladesh. They all offered employment opportunities to our youth."

The actions of a few risk tarnishing the perception of the many, painting Bangladesh as a volatile market rather than a stable one.

For potential investors, stability is non-negotiable. The sight of mob violence, even if driven by geopolitical sentiments rather than domestic unrest, sends a chilling message. Companies considering multimillion-dollar investments in renewable energy plants or pharmaceutical manufacturing facilities may now question whether their assets and employees can be adequately protected. 

The perception of risk, whether real or exaggerated, often outweighs economic incentives in boardroom discussions, and Bangladesh's recent unrest has handed skeptics a potent talking point.

The economic fallout of perception

"This is very unfortunate. Investment summit or not, such acts of vandalism should not happen. The government should handle this boldly. This is harming the image of Bangladesh. Such events are not our reality; this is not Bangladesh," said Abul Kasem Khan, the director of AK Khan and Co Ltd, chairperson of Business Initiative Leading Development (BUILD) and former president of the Dhaka Chamber of Commerce and Industry.

The vandalised businesses — KFC, Domino's, Bata, and others — are not merely symbols of Western capitalism; they are franchises operated by local entrepreneurs, employing hundreds of Bangladeshis and contributing to the urban economy. 

In Sylhet, a KFC outlet in Mirboxtula and a Domino's Pizza outlet in Chowhatta were ransacked, with protesters smashing windows and Coca-Cola signboards under the pretext of boycotting brands perceived to support Israel. 

Similar scenes unfolded in Chattogram, where a Puma showroom and Pizza Hut outlet were targeted, and in Barishal, where a KFC signboard was defaced. These incidents, while isolated, amplify a narrative of lawlessness that could deter investors who prioritise predictability.

The summit's promise of "five key sectors" hinges on an unspoken premise: a secure environment for capital deployment. Though not aimed at the government or local industries, the unrest exposes vulnerabilities in public order that could ripple across sectors.

"Those who want to see Bangladesh fail, such incidents hold a propaganda value for them. See, private property is destroyed here. So, there is certainly the possibility of sending the wrong message," explained Nurul Huda, former inspector general of Bangladesh Police.

Renewable energy projects, for instance, require long-term commitments and physical infrastructure — both susceptible to disruption if civil unrest becomes a recurring theme. 

Likewise, the healthcare and pharma sectors, reliant on intellectual property and supply chain stability, may see investors hesitate if they perceive a risk of populist backlash against foreign entities.

Authorities' response: Reactive, not proactive

The government's response, while swift in its aftermath, highlights a missed opportunity for proactive containment. 

The initial response could have been better, especially when it comes to sending the right message. 

Khulna's Moylapota intersection KFC falls under the Khulna Metropolitan Police South Zone and in the aftermath of the attack Deputy Commissioner of that zone Md. Abu Tarek said, "The victims who have suffered losses here. If they file a complaint with the police station, legal action will be taken."

Although 31 individuals from Khulna have now been arrested in connection with the vandalism and looting, that initial remark had many scratching their heads as to whether the police only intend to arrest the miscreants if a case is filed.Why would owners have to file a case when its a visible crime?

Inspector General of Police (IGP) Baharul Alam later ordered the arrest of those responsible, and 49 individuals were detained by 8 April across Khulna, Sylhet, and Gazipur.

The Chief Adviser's Office condemned the vandalism as "an affront to public safety and the rule of law," urging citizens to assist in identifying perpetrators. Sylhet Metropolitan Police Commissioner Rezaul Karim noted that a case has been filed against unknown persons, with efforts underway to analyse video footage for further arrests.

While these measures demonstrate resolve, they are inherently reactive. The protests, sparked by a global call for a "No Work, No School" strike in solidarity with Gaza, were not unforeseen. Reports indicate that thousands participated in rallies nationwide, with Chattogram alone seeing over 26 local organisations mobilise. 

"The potential for escalation was evident, yet preventive action was not taken. Obviously, protests and demonstrations can happen in a democratic country. However, these protests taking a violent turn and authorities not taking enough preventive measures might be concerning for investors," said Nurul Huda.

"The authorities should have followed the protests more closely. When the protests turned violent and people started destroying property, they should have been deterred," he added. 

Heightened police presence near commercial hubs or preemptive dialogue with protest organisers appears to have been absent. 

In Sylhet, police arrived only after the KFC and Bata outlets were already damaged, a pattern repeated in Chattogram's GEC intersection, where bricks and stones shattered restaurant facades before law enforcement intervened.

A more proactive stance could have included strategic deployments of police and army personnel — already mobilised in other contexts, such as dispersing earlier unrest — around vulnerable commercial zones. 

Public messaging from the government clarifying the distinction between peaceful protest and criminal acts might have deterred opportunists who exploited the rallies for looting, as seen with the recovery of stolen Bata shoes advertised on Facebook. The authorities' reliance on post-incident arrests, while necessary, does little to reassure investors that future disruptions can be preempted.

The path forward

To protect its image, Bangladesh must act decisively. 

First, the interim government has been busy putting out fires (both literally and figuratively) since assuming office; it seems to have put them on a permanent crisis management mode. Instead, they need to take on a more proactive approach and prevent the fires in the first place. 

A public campaign highlighting the economic contributions of affected businesses — local jobs, tax revenue and community ties — could counter the narrative of foreign exploitation that fuelled the protests. Bata's statement denying Israeli ownership, for instance, offers a blueprint: transparency can dispel misinformation and rebuild trust.

Second, authorities must bolster security measures around commercial and industrial zones, particularly as the summit continues. Visible policing, coupled with assurances from BIDA and the police, could reassure investors that Bangladesh is committed to protecting their interests. The swift arrest of 49 suspects is a start, but a broader strategy — perhaps a task force dedicated to protest-related intelligence — could prevent future flare-ups.

"The law and order situation needs to be improved. Law breakers need to face justice and rule of law must be established here. The government needs to send a strong message," said Abul Kasem Khan. "A stable law and order situation is the best assurance you can give to businessmen and investors," he added.

Finally, the government should leverage the summit itself to address the unrest head-on. Rather than sidestepping the issue, officials could use the platform to outline concrete steps for maintaining stability, turning a moment of weakness into a demonstration of resilience. 

Investors are pragmatic; they understand that no nation is immune to unrest. What matters is how Bangladesh responds.