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Investment Regime in Bangladesh

Table of Contents

In Bangladesh, investors, both local and foreign, are generally free to invest in most sectors. However, certain sectors are designated as “Reserved” where private investment is prohibited, and others are “Controlled,” requiring prior permission or adherence to specific conditions. This guide outlines these categories.

1. Reserved Sectors
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Private investment, by both local and foreign entities, is prohibited in the following sectors. These are designated as reserved to be undertaken by the public sector only:

  1. Arms, ammunitions, and other military equipment/machinery.
  2. Forestation and mechanised extraction within the bounds of reserved forests.
  3. Production of nuclear energy.
  4. Security printing (such as currency notes, passports, visa foils, judicial/non-judicial stamps) and minting.

2. Controlled Sectors
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Investment in these sectors is permissible for private entities, including foreign investors, but typically requires prior approval, or a specific licence from the relevant government ministry, division, or authority (e.g., Bangladesh Energy Regulatory Commission (BERC), Bangladesh Telecommunication Regulatory Commission (BTRC), Bangladesh Bank, etc.).

The controlled sectors include:

  • Deep sea fishing.
  • Bank/finance.
  • Insurance.
  • Generation, supply and distribution of power.
  • Exploration, extraction and supply of natural gas/oil.
  • Exploration, extraction and supply of coal.
  • Exploration, extraction and supply of other mineral resources.
  • Large-scale infrastructure (e.g., flyover, expressway, monorail, economic zone).
  • Crude oil refinery (recycling/refining of lube oil as fuel).
  • Medium and large industries using natural gas/condensate and other minerals as raw material.
  • Telecommunication (mobile/cellular and land phone).
  • Satellite channel.
  • Cargo/passenger aviation.
  • Sea-bound ship transport.
  • Sea-port/deep sea-port.
  • VOIP/IP telephony.
  • Industries using heavy minerals accumulated from sea beach.
  • Explosive production.
  • Acid production.
  • Chemicals.
  • All kinds of sludge and fertiliser made from sludge.
  • Stone crushing.

3. Foreign Investment Restriction
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In Bangladesh, the general principle is that 100% foreign ownership is permissible across most economic sectors. However, there are specific industries where foreign shareholding is subject to certain limitations and 100% foreign ownership is not permitted. These sectors currently include, but are not limited to:

  • Telecommunications
  • Aviation
  • Freight forwarding
  • Customs Agent
  • Shipping
Key Contact

For further clarification or assistance regarding investment in reserved or controlled sectors in Bangladesh, please contact: