Steady Returns from Steady Growth
Amid global turmoil, Bangladesh’s capital markets have been marked by stability and optimism.
“We want US businesses to join us as partners, not as aid or loan providers.”
PROFESSOR SHIBLI RUBAYAT-UL-ISLAM CHAIRMAN OF THE BSEC
Since taking the helm of the Bangladesh Securities and Exchange Commission (BSEC) in 2020, Prof Shibli Rubayat-ul-islam has been busy modernizing Bangladesh’s burgeoning capital markets. He is fast-tracking the development of the bond and derivative markets; preparing the launch of Bangladesh’s first commodities exchange to manage supplies and logistics; implementing global regulatory standards; and harnessing cutting-edge technology to restructure the capital market and enhance security.
Even though Bangladeshi capital markets are still maturing, Prof Shibli aims to leapfrog to create “one of the best digital capital markets in the world.” The strength of Bangladesh’s markets, however, has already been demonstrated. Take Bangladesh’s leading index, the DSEX, as an example. This year, it has been marked by stability amid global volatility, avoiding bear market territory on the latest drawdown and outperforming even its American peers.
This year, the chair of the BSEC was also the first Bangladeshi to be elected Vice-chairman of the International Organization of Securities Commissions (IOSCO) for Asia Pacific. In his role, he says he’s pushing the organization that regulates the world’s securities and futures markets to adapt to the fast-changing world of cryptocurrencies and blockchain technologies by laying down rules to help all market participants. Already in 2013, the BSEC was elevated to an ‘A’ category member of IOSCO for its capital market reforms.
Meanwhile, Prof Shibli leverages his authoritative voice to highlight mutually beneficial investment and partnership opportunities in Bangladesh to the international community. “My intention is to protect Bangladesh and help it grow further on the back of the stable growth we have had for the last 12-13 years,” he explained.
Q: What opportunities does Bangladesh offer US investors?
Prof Shibli: Bangladesh’s opportunities are still not well known, but the government of Bangladesh is business-friendly and the return on investment is unmatched. We want US businesses to join us as partners, not as aid or loan providers. Bangladesh needs investments in energy, roads, rail and shipping. We have a huge delta, and the blue economy is full of potential, as is renewable energy.
The ready-made garment sector has been the best investment for the last two decades – it’s become the second largest in the world and continues to see 25% growth. But the export basket is expanding. For instance, Bangladesh once imported around 99% of its medicines, but today imports make up 1.5%, and we export to 42 countries. Industry is also moving in, including manufacturing plants from Samsung and Hyundai. Bangladesh’s domestic market has 170 million people – any product is sellable because it’s the size of England, France and Italy combined.
Q: What’s it like doing business in Bangladesh?
Prof Shibli: Before they arrive, visitors often have certain ideas that change after they get to know the country. I know ambassadors who cried when they were first appointed here and cried again when they were transferred elsewhere. The people here are incredibly welcoming. I know a Chinese investor who has been here for 25 years, making good money in the garment sector and now wants to expand into fish and seafood exports. This is how it is with most investors in Bangladesh: they never want to leave.