RIYADH: Saudi energy giant Aramco plans to build an oil refinery in Bangladesh, potentially transforming the sector in the Bay of Bengal, revealed the Kingdom’s Ambassador Essa Al-Duhailan.
During the launch of the report “Enhancing Saudi-Bangladesh Economic Engagement: Trends, Key Challenges and Long-Term Growth Prospects” at the Foreign Ministry in Dhaka, the ambassador emphasized Aramco’s potential investment.
Saudi Arabia, home to the largest Bangladeshi expatriate community, has increasingly engaged with Bangladesh through investment agreements and establishing a joint business council, signaling a deepening economic partnership.
The proposed refinery aims to address Bangladesh’s growing demand for petroleum products while positioning itself as a regional supplier to markets like China and India.
“We are talking about Aramco, the biggest oil company in the world. They are willing to come to Bangladesh to build a refinery here,” said Al-Duhailan, according to state-run news agency Bangladesh Sangbad Sangstha.
The ambassador highlighted the transformative potential of establishing a maritime route between Chattogram and Jeddah or Dammam, enhancing trade efficiency and connectivity, BSS reported.
“Our international company, Red Sea Gateway Terminal, is already operating the Patenga terminal and is keen to contribute to the Matarbari deep-sea port,” he added.
Reflecting on past challenges, Al-Duhailan mentioned Aramco’s previous high-profile delegations to Bangladesh from 2016-2018, which did not yield engagement. “But we will not talk about the past. We will talk about the future,” the ambassador said, calling for renewed focus on bilateral cooperation.
The event also spotlighted the broader Saudi-Bangladesh relationship. Al-Duhailan said that ACWA Power, the world’s largest renewable energy company, is exploring a $3.5 billion investment in Bangladesh.
He added that the South Asian country is a green field for investment while advocating for reforms to streamline bureaucratic processes and combat corruption.
The report detailed pathways to deepen economic ties and outlined opportunities for Bangladesh to boost exports to the Kingdom, expand imports of vital resources, and attract investment in key sectors.
Challenges such as bureaucratic inefficiencies and corruption were also addressed, with strategic recommendations for overcoming these barriers.
The ambassador emphasized the importance of combining political and economic engagement for mutual benefit. “We have unique relations… we have many success stories,” he said, urging both nations to create more collaborative achievements in trade, culture, tourism, and beyond.
The analysis, prepared by the Bangladeshi Foreign Ministry, serves as a roadmap for enhancing bilateral economic engagement, offering valuable insights for policymakers and investors from both nations. It sets the stage for a strengthened partnership poised to unlock new growth opportunities, BSS reported.
In March, Bangladesh secured a $1.4 billion financing deal with the International Islamic Trade Finance Corp., enabling it to strengthen crude oil imports from suppliers like Saudi Aramco.
The funding bolstered the South Asian nation’s energy security and alleviated pressure on its dollar reserves, underscoring Aramco’s pivotal role in Bangladesh’s energy landscape.
Bangladesh’s government, led by Nobel laureate Muhammad Yunus, has emphasized strengthening ties with Saudi Arabia as a key priority. Following his first meeting with Al-Duhailan in August, Yunus underscored the Kingdom’s role as a vital partner in addressing Bangladesh’s economic challenges.
