How the island district of Bhola is emerging as a prime investment destination
With its rich natural resources and growing infrastructure, Bhola is fast becoming an industrial powerhouse
As entrepreneurs seek untapped markets with high returns and sustainable growth potential, Bhola — a once-overlooked island district of Bangladesh — is rapidly gaining attention as a strategic and resource-rich destination for both local and foreign entrepreneurs.
Located at the estuary of the Bay of Bengal and flanked by the Meghna and Tentulia Rivers, Bhola is Bangladesh's largest island district. Despite its geographical isolation, Bhola is proving to be an industrial powerhouse, rich in natural resources and backed by growing infrastructural development.
The district is directly connected via river routes to the country's three major seaports — Chattogram (350 km), Mongla (150 km), and Payra (50 km) — making it logistically attractive for export-oriented industries.
Furthermore, Bhola is home to three discovered gas fields with an estimated reserve of around 7 trillion cubic feet (tcf), according to Petrobangla. The daily production capacity of these fields stands at approximately 200 million cubic feet (mmcf), though current production ranges between 70 to 80 mmcf per day.
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In addition, the district hosts four power plants with a combined capacity of 575 megawatts (MW), while local demand hovers at around just 100 MW — creating a substantial energy surplus for new investors.
Sheltech Ceramics's success story
A prime example of Bhola's potential is Sheltech Ceramics, a venture of the prominent Sheltech Group.
Within just two years of establishing its tile manufacturing plant in Bhola, Sheltech has already launched the construction of two more factories, poised to triple its production to a daily output of 420,000 square feet — positioning it among the top ceramic manufacturers in Bangladesh.
"Bhola is ideal for us," said Kutubuddin Ahmed, chairman of Sheltech Group. "We secured uninterrupted gas and electricity with ease — something that ceramic entrepreneurs often wait years for in other industrial zones."
He emphasised Bhola's competitive edge: low-cost land, abundant gas and power, and inexpensive waterway transport. "The district offers everything required to lead the ceramic industry," he stated.
Transporting goods from Bhola to other regions is also remarkably efficient. With warehouses in Lakshmipur, Jashore, and Narayanganj, Sheltech can deliver products within six to seven hours via waterways — avoiding traffic congestion and lowering transport costs.
Bhola also offers low-cost labour and a ready workforce. Thousands of workers from Bhola currently migrate to industrial zones like Gazipur and Narayanganj. Establishing factories locally would allow these individuals to work closer to home, improving both quality of life and workforce retention.
Opportunities for expansion
Zulfikar Mahmud Niaz, owner of Bhola Auto Rice Mill, highlighted the district's potential for establishing garment factories, paper mills, ceramics plants, fertiliser factories, and oil refineries.
"We have continuous gas and electricity now, and land is still affordable," he noted. "Major companies entering Bhola can expect high profitability," he explained.
He urged improvements in the port infrastructure — particularly better terminals for ships and increased ferry services. "The Bhola-Barishal Bridge is a crucial project," he said. "Once completed, it will enable direct gas pipeline connectivity to Dhaka."
Bhola offers low-cost labour and a ready workforce. Thousands of workers from Bhola currently migrate to industrial zones like Gazipur and Narayanganj. Establishing factories locally would allow these individuals to work closer to home, improving both quality of life and workforce retention.
Abi Abdullah, former secretary to the government of Bangladesh, said that Bhola offers a favourable environment for all types of manufacturing industries.
"Compared to other regions, establishing industries in Bhola can lead to significantly higher profits." He urged the government to introduce tax holidays, improve port infrastructure, and prioritise the Bhola-Barishal Bridge project.
Obaidul Hoque, director of Janata Bank and former executive director of Bangladesh Bank, highlighted Bhola's low land acquisition costs, availability of gas and relatively untapped market. "With the right policies and administrative support, Bhola could become a hotspot for industrial expansion," he stated.
Saiful Islam (Kamruz), deputy secretary at the Implementation Monitoring and Evaluation Division (IMED), noted that thousands of workers from Bhola are currently employed in industrial hubs like Gazipur and Narayanganj. Establishing factories in Bhola would allow these individuals to work closer to home, reduce living costs and retain more of their income.
"There is strong potential for setting up dyeing, knitting, and composite garment factories in Bhola," he said. "With local access to gas and electricity, the district is perfectly suited for industrial development."
Md Afzal Hossain, former managing director of Emerald Oil Industries Ltd, pointed to Bhola's logistics advantage, citing its proximity to Chattogram, Mongla and Payra ports. "With electricity and a business-friendly climate, Bhola is ideal for export-oriented industries," he said.
Zakir Hossain Mohin, executive director of Grameen Jano Unnayan Sangstha, suggested further potential in agro-processing. "The chars around Bhola are suitable for soybean cultivation. Establishing an oil refinery could boost soybean oil production substantially."
Government support and economic zone development
Recognising Bhola's promise, the Bangladesh Economic Zones Authority (BEZA) approved the Bhola Eco-Development Economic Zone in July 2024. Operated by Chinese-owned Liz Fashion Industries Limited, the zone will span Bhola Sadar and Daulatkhan upazilas and is expected to attract $1.8 billion in investment and generate up to 40,000 jobs.
Liz Fashion Industries, which has operated in Bangladesh since 1997, is leading this initiative with long-term commitment — its Managing Director Leo Zhuang has even obtained Bangladeshi citizenship.
Targeted sectors include textiles, garments, ceramics, electronics, ICT, leather, renewable energy, agro-processing, and blue economy venture.
