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The foreign ministers hold a bilateral meeting in Riyadh
Published : 02 Jul 2024, 05:29 AM
Foreign Minister Mohammad Hasan Mahmud has urged Saudi Arabia to invest in the country's offshore banking system.
He made the call during a bilateral meeting with Saudi Foreign Minister Prince Faisal bin Farhan Al-Saud in Riyadh on Monday.
"The meeting discussed Saudi investment in Bangladesh, particularly in special economic zones and the country's offshore banking system," the foreign ministry said in a press release.
The parliament in March passed a Bill creating opportunities for offshore banking within a legal framework in March.
In this system, separate from conventional banking, both the activities of accepting deposits and giving loans come from foreign sources and are provided to foreign customers.
The Bill allows offshore banking to source foreign currency funds from foreign entities, including 100 percent foreign-owned companies operating in approved specialised zones and Bangladesh Bank's approved sources.
Banking activities with non-residents or residents of Bangladesh will be conducted as per central bank's instruction.
Offshore banking units can accept deposits from fully foreign-owned entities operating in export processing zones, private export processing zones, economic zones, and high-tech parks.
These units can also provide short-term loans and advances or investments, credit and guarantee facilities, bill discounting, bill negotiating, and other foreign trade-related external transaction services.
Under the Act, non-resident Bangladeshis, foreign individuals, and entities can deposit funds and take loans from offshore banking units.
Offshore banking units can operate accounts in any authorised foreign currency.
In this business, depositors or foreign creditors providing funds to these units will be exempt from direct and indirect taxes on the interest or profit they earn.
Their accounts will also be exempt from any disclosure duties and levies.
In addition to utilising the offshore banking system, the foreign ministry said the meeting emphasised Saudi investment in various sectors in Bangladesh.
The meeting discussed strengthening bilateral relations in various fields. In particular, it focused on political matters and bolstering bilateral and multilateral coordination on issues of concern to both brotherly countries, according to the press release from Saudi Ministry of Foreign Affairs.
The Bangladesh foreign ministry said the meeting underscored the need to invigorate the activities of the Bangladesh-Saudi Arabia Joint Business Council, or JBC to enhance commercial relations between the two countries.
The foreign ministers also discussed Bangladesh's special privileges in importing oil from Saudi Arabia.
They also talked about forming a joint task force to bring more transparency to the export of Bangladeshi manpower to the Gulf kingdom and to prevent worker harassment by vested interests.
"Foreign Minister Hasan Mahmud requested special opportunities for the registration of Bangladeshi expatriates doing business in Saudi Arabia," the statement said.
Saudi foreign minister assured cooperation if assistance was sought for the repatriation of Rohingya.
They emphasised the need for unified efforts by the Muslim world to halt Israeli atrocities in Gaza, according to the statement.
The hour-and-a-half meeting included discussions on the upcoming visit of Saudi Crown Prince and Prime Minister Mohammed bin Salman to Bangladesh, the statement said.
“They decided on a joint action plan for the proper celebration of the golden jubilee of Saudi-Bangladesh diplomatic relations next year and to upgrade the meeting of the Bangladesh-Saudi Arabia Joint Commission to the ministerial level,” according to the statement.
Among others, Prime Minister's Adviser on Private Industry and Investment Salman F Rahman, Bangladesh Ambassador to Saudi Arabia Javed Patwary, Additional Foreign Secretary Nazrul Islam, and Director General (West Asia Wing) Shafiqur Rahman attended the meeting.
