Building bridges: Unlocking the investment potential of Bangladesh’s diaspora

Sketch: TBS

For decades, Non-Resident Bangladeshis (NRBs) have played a pivotal role as an economic lifeline for Bangladesh. In the fiscal year 2024-2025 alone, remittances from NRBs reached an unprecedented $30.33 billion, bolstering household incomes, easing foreign exchange reserve pressures, and significantly driving national consumption.

However, despite this remarkable financial support, remittances remain underleveraged as a catalyst for sustained investment and structural economic development. This untapped potential presents a transformative opportunity: to move beyond seeing NRBs solely as remittance senders and instead embrace them as active partners and co-investors in Bangladesh's sustainable growth journey.

In today's interconnected and fiercely competitive global economy, Bangladesh must evolve its approach. Transitioning from mere remittance dependence to a comprehensive engagement strategy that positions NRBs as strategic co-investors is imperative. 

Such transformation requires not only policy pronouncements but concrete reforms, institutional coordination, and a conducive environment that allows capital, expertise, and networks of the global Bangladeshi community to integrate meaningfully into the domestic economy.

At the heart of this transformation lies trust. Many NRB entrepreneurs are hesitant to invest back home due to concerns over policy instability, legal ambiguities, and bureaucratic inefficiencies. To address these concerns, the government should enact a Diaspora Investment Protection Act guaranteeing repatriation rights, tax incentives, and comprehensive investment security. 

Equally important is the establishment of dedicated commercial courts or alternative dispute resolution mechanisms to swiftly and fairly resolve business conflicts. Stability and predictability in regulation, maintained by institutions such as the Ministry of Finance, the National Board of Revenue (NBR), and Bangladesh Bank, are vital to inspiring confidence and securing long-term investment commitments.

Alongside building trust, the investment opportunities presented to NRBs must be tailored to their sophistication and sector preferences. As NRBs get more experienced globally, they seek transparent, sector-specific, and results-driven ventures. Bangladesh must develop curated "NRB Priority Investment Packages" in promising sectors such as agro-processing, digital services, export manufacturing, healthcare, education, and renewable energy. 

These packages should be backed by transparent data and, where applicable, joint investment options with government agencies or development finance institutions. Such initiatives will streamline pathways for expatriates to align their financial aspirations with the country's development goals.

To facilitate this engagement, institutional innovation is critical. Establishing a centralised NRB Investment Facilitation Centre, ideally under the Prime Minister's Office or the Bangladesh Investment Development Authority (BIDA), would serve as a dedicated one-stop service hub for NRB investors. 

This centre could offer personalised assistance through dedicated case managers, expedite project approvals, and provide legal and tax advisory support. A bilingual digital platform in English and Bangla would further ease communication and streamline application processes globally.

Sustained visibility and engagement are also crucial. Bangladesh should organise annual NRB investment summits in global cities such as London, New York, and Dubai, as well as in Dhaka and Sylhet. 

These summits would blend inspiring success stories with practical networking by bringing together established NRB entrepreneurs, government officials, and local business leaders for meaningful partnerships and business-to-business collaboration. Beyond facilitating investments, these events will reaffirm the indispensable role of the global Bangladeshi community in the nation's development trajectory.

Storytelling plays a powerful role in this effort. Celebrating NRBs who have successfully invested in Bangladesh—through embassies, media campaigns, and digital platforms—can inspire confidence and action. Instituting an "NRB Investors Hall of Fame" to recognise those who have contributed significantly to job creation, exports, and innovation would help translate abstract policies into relatable and motivating narratives.

Long-term engagement depends on recognition and incentives. Launching a national NRB Business Excellence Award and honouring top investors during key national occasions such as Victory Day and International Migrants Day can foster pride and strengthen emotional ties. Offering privileges such as VIP visa status, expedited green channel airport processing, and formal protocol recognition will further encourage sustained diaspora participation.

Bangladeshi diplomatic missions must evolve beyond consular functions to become active investment facilitation hubs. Commercial counsellors and economic officers should be trained and empowered to serve as liaisons, collecting business intelligence, organising roundtables, and promoting curated investment opportunities. Maintaining updated diaspora entrepreneur directories and fostering ongoing dialogue are essential to deepening engagement.

To reduce barriers and accelerate market entry, Bangladesh should establish plug-and-play investment zones tailored specifically for NRBs. Situated within existing economic or special zones, these dedicated areas would offer ready infrastructure, shared utilities, streamlined customs clearance, and long-term leasing options. Coupled with joint venture opportunities, such zones would dramatically reduce operational and transaction costs for diaspora investors.

One of the most critical enablers of this comprehensive strategy is data. Currently, Bangladesh lacks a verified and consolidated database of diaspora business leaders. Developing a centralised NRB investor registry through collaboration with embassies, diaspora business chambers such as UKBCCI and BBCCI, and through online self-registration portals would enable precise categorisation by geography, investment capacity, and sectoral interest. 

This data-driven approach would facilitate targeted outreach, informed policy formulation, and effective matchmaking between investors and projects.

Yet, none of these efforts will bear fruit without robust inter-ministerial coordination and institutional accountability. A whole-of-government approach, led by the Prime Minister's Office and encompassing the Ministry of Finance, Ministry of Commerce, Ministry of Industries, Ministry of Foreign Affairs, and the National Board of Revenue, is essential. 

Empowering BIDA as the lead implementing agency, equipped with adequate authority, skilled personnel, and digital infrastructure, is critical to implementing this ambitious NRB engagement agenda.

The time has come for Bangladesh to redefine how it perceives and partners with its global citizens. NRBs are not merely remittance sources; they are prospective co-architects of the nation's economic transformation. By providing them with structured opportunities, robust institutional support, and a sense of belonging, Bangladesh can unlock a new era of growth where the bridge connecting the global Bangladeshi community to the homeland is not just built but well-travelled.

Looking forward, the mission is clear: to convert diaspora goodwill into strategic capital and progress beyond a narrow reliance on remittances towards inviting investment, innovation, and shared ownership in Bangladesh's future. The bridge has been envisioned, and its foundations laid. Now is the time to cross it—together.

Sketch: TBS

Dr Md Neyamul Islam is an international trade law expert.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.