Trade Scenario Between Bangladesh and Saudi Arabia

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Trade Scenario Between Bangladesh and Saudi Arabia

Both Bangladesh and Saudi Arabia are members of OIC and share common views on many international and regional issues. The two countries are trading partners and are willing to further develop trade relations.

2. The trade balance between Bangladesh and Saudi Arabia is stated below (Value in million US$)

Fiscal Year	Export	Export Growth (%)	Import	Balance
2013-14	187.54	10.89	807.70	-620.16
2014-15	186.32	-0.65	828.00	-641.68
2015-16	225.68	21.12	590.70	-365.02
2016-17	185.21	-17.93	605.40	-420.19
2017-18	205.32	10.86	807.00	-601.68
2018-19	249.73	21.63	1045.90	-796.17
2019-20	262.88	5.27	1090 (P)	-827.12
2020-21	261.12	-0.67	979.50	-718.38
2021-22	290.64	11.31	1693.30	-1402.66
2022-23	297.47	2.35

3. It transpires from the above table that though the export of Bangladesh has been increasing but the balance of trade has always been in favour of Saudi Arabia. There is an urgent need for measures for reducing the trade gap to the favour of Bangladesh.

4. The main export items from Bangladesh to Saudi Arabia are Vegetables, Frozen fish, Potato flakes, Jute yarn and twine, Jute manufactures, Woven garments, Knitwear, Rice, Leather goods including footwear, Processed food, Tea, Hats and other headgear, Fruits, Home textile, Sacks & badgs, Tents, Mustard oil, Spices, Betel nut, Cut flower & foliage, Turmeric etc. A list showing commodity-wise exports from Bangladesh to Saudi Arabia during 2018-2019 to 2019-2020 May kindly be seen at Annexure-A.

5. The items that we import from Saudi Arabia to Bangladesh are Vegetable products, Prepared foodstuffs, Mineral products, Chemical products, Organic chemicals, Plastic and Rubber articles, Pulp of wood, Textile & textile articles, Articles of stone, Base metals and articles, Machinery and mechanical appliances, Electrical machinery, Dates, Optical etc.

6. Potential items of Bangladesh to export in Saudi Arabia are Vegetables, Potato, Pharmaceuticals, RMG, Agro processed food, Footwear, Jute Goods, Plastic products, Ceramic Tableware, Accumulator battery etc.

7. Activities taken by Export Promotion Bureau to expand export to Saudi Arabia:

Export Promotion Bureau organized private sector participation in the following fairs held in Saudi Arabia:

(1) Foodex, Saudia;

(2) Jedda Int’l Trade Fair.

8. In view of the above, the following points may be taken into consideration in order to boost up Bangladesh export to Saudi Arabia :

1. Saudi Arabia having a good economy can consider granting concessional duty and zero tariff to import from Bangladesh as an LDC. A list of 34 items for which Bangladesh may request for Duty free Access by Saudi Arabia is also enclosed herewith in Annexure –‘B’;

2. To boost up our export to Saudi Arabia, importers of Saudi Arabia may be persuaded to import more Frozen fish, RMG, Cut flower & foliage, Agro process food, Vegetable, Pharmaceutical, Jute goods, Halal meat, Tea etc;

3. Necessary steps may be taken for signing of MOU between DLS (Department of Live Stock), Bangladesh and Saudi Food & Drug Authority to enhance our export of Halal meat ;

4. Saudi Govt. may be urged upon to let us know the Health Standards of food items and agro-products including other products being exported from Bangladesh to Saudi Arabia for transmitting the same to the exporters of Bangladesh to follow the compliance requirement of the Kingdom of Saudi Arabia. An MOU may be signed between BSTI (Bangladesh Standard and Testing Institute) and Saudi Food & Drug Authority to enhance our export of food items.;

5. Exchange of trade delegation between the two countries both at private and govt. level should take place to further develop bilateral trade;

6. Saudi Arabian investors may be convinced to invest in the area of Textiles, Leather products, Plastic sector and Agro-based industry in Bangladesh;

7. Single Country Trade Fair in Saudi Arabia may be encouraged to familiarize our products and quality.

Annexure –‘A’

FY 2018-19

Value in US$

SA: SAUDI ARABIA		249733234.4
	61: Articles of apparel and clothing accessories, knitted or crocheted	49,852,315.21
	19: Preparations of cereals, flour, starch or milk; pastrycooks' products	46,067,759.20
	62: Articles of apparel and clothing accessories, not knitted or crocheted	38,334,377.33
	14: Vegetable plaiting materials; vegetable products not elsewhere specified or included	37,285,625.95
	07: Edible vegetables and certain root and tubers	15,824,658.95
	09: Coffee, tea, mate and spices	15,445,525.02
	20: Preparation of vegetables, fruit, nuts or other parts of plants	11,582,754.76
	03: Fish and crustaceans, mollusc and other aquatic invertebrates	9,301,544.76
	53: Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn	6,070,881.30
	06: Live trees and other plants, bulbs, roots, and the like; cut flowers and ornamental foliage	5,316,941.87
	42: Articles of leather; saddlery and harness; travel goods, handbags and similar containers;	4,482,947.44
	15: Animal or vegetable fats and oils and their cleavage products; prepared edible fats,	2,283,149.60
	64: Footwear, gaiters and the like; parts of such articles	2,191,952.04
	10: Cereals	1,937,839.62
	39: Plastics and articles thereof	611,094.54
	22: Beverages, spirits and vinegar	583,628.90
	63: Other made up textile articles; sets; worn clothing and worn textile articles;rags	555,809.69
	94: Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed	513,349.65
	79: Zinc and articles thereof	254,077.78
	12: Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or	236,884.57
	17: Sugar and sugar confectionery	184,617.86
	52: Cotton	150,211.29
	04: Dairy produce; bird's eggs; natural honey; edible products of animal origin, not elsewhere	89,358.89
	13: Lac; gums, resins and other vegetable saps and extracts	69,662.34
	49: Printed books, newspapers, pictures and other products of the printing industry;	67,695.71
	65: Headgear and parts thereof	66,676.02
	58: Special woven fabrics; tufted textile fabrics; lace; tapestries;trimmings; embroidery	62,469.67
	69: Ceramic products	52,739.91
	08: Edible fruits and nuts; peel of citrus fruit or melon	45,783.91
	33: Essential oils and resinoid; perfumery, cosmetic or toilet preparations	43,569.22
	46: Manufactures of straw, of esparto or of other plaiting materials; basketware and	37,835.88
	84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	26,602.78
	48: Paper or paperboard; articles of paper pulp, of paper or paperboard	24,328.46
	44: Wood and articles of wood; wood charcoal	21,754.57
	76: Aluminium and articles thereof	18,827.20
	29: Organic chemicals	16,758.74
	11: Products of the milling industry; malt; starches; inulin; wheat gluten	13,953.96
	41: Raw hides and skins (other then furskins) and leather	2,200.29
	96: Miscellaneous manufactured articles	1,975.27
	57: Carpets and other textile floor covering	1,494.54
	21: Miscellaneous edible preparations	1,119.41
	98: Miscellaneous National Provisions	380.83
	30: Pharmaceutical products	99.47

FY 2019-20

Value in US$

SA: Saudi Arabia		262876607.6
	07: Edible vegetables and certain root and tubers	59,712,570.65
	61: Articles of apparel and clothing accessories, knitted or crocheted	47,279,132.66
	19: Preparations of cereals, flour, starch or milk; pastrycooks' products	44,705,757.08
	62: Articles of apparel and clothing accessories, not knitted or crocheted	39,358,732.05
	09: Coffee, tea, mate and spices	15,886,822.68
	14: Vegetable plaiting materials; vegetable products not elsewhere specified or	13,743,290.35
	20: Preparation of vegetables, fruit, nuts or other parts of plants	12,141,568.39
	03: Fish and crustaceans, mollusc and other aquatic invertebrates	7,638,675.69
	53: Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn	5,778,645.85
	10: Cereals	4,548,852.45
	15: Animal or vegetable fats and oils and their cleavage products; prepared edible	2,931,468.19
	64: Footwear, gaiters and the like; parts of such articles	2,546,815.90
	42: Articles of leather; saddlery and harness; travel goods, handbags and similar	2,157,233.94
	94: Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed	912,039.12
	63: Other made up textile articles; sets; worn clothing and worn textile articles;rags	884,586.74
	39: Plastics and articles thereof	809,428.83
	17: Sugar and sugar confectionery	407,550.07
	12: Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial	339,242.14
	22: Beverages, spirits and vinegar	321,453.31
	90: Optical, photographic, cinematographic, measuring, checking, precision, medical	168,787.77
	04: Dairy produce; bird's eggs; natural honey; edible products of animal origin, not	166,588.08
	52: Cotton	57,853.72
	87: Vehicles others than railway or tramway rolling-stock, and parts and accessories	53,961.08
	13: Lac; gums, resins and other vegetable saps and extracts	51,256.05
	65: Headgear and parts thereof	41,643.45
	84: Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	40,839.12
	69: Ceramic products	32,044.41
	46: Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork	23,318.80
	44: Wood and articles of wood; wood charcoal	19,667.43
	29: Organic chemicals	17,812.61
	11: Products of the milling industry; malt; starches; inulin; wheat gluten	15,054.26
	21: Miscellaneous edible preparations	14,359.54
	33: Essential oils and resinoid; perfumery, cosmetic or toilet preparations	14,299.10
	58: Special woven fabrics; tufted textile fabrics; lace; tapestries;trimmings;	11,181.04
	56: Wadding felts and non wovens; special yarn; twine, cordage, ropes and cables	10,061.42
	08: Edible fruits and nuts; peel of citrus fruit or melon	9,986.62
	73: Articles of iron or steel	7,646.12
	85: Electrical machinery and equipment and parts thereof; sound recorders and	7,436.60
	41: Raw hides and skins (other then furskins) and leather	5,991.97
	49: Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	2,732.84
	01: Live animals.	119.99
	30: Pharmaceutical products	99.5

Annexure –‘B’

List of Bangladesh Products for which Duty-free

Access may be sought to Saudi-Arabia

Sl.No	Name of the products
01.	Jute products
02.	Frozen Food
03.	Knitwear
04	Woven Garments
05.	Leather and Leather products
06.	Pharmaceutical products.
07.	Cut flower & Foliage
08.	Agro-Processed Products
09.	Halal Meat
10.	Footwear (Leather)
11.	Melamine Products
12.	Plastic Products
13.	Ceramic Products
14.	Textile Fabrics
15.	Specialized Textile
16.	Baggage and Luggage
17.	Accumulator Battery
18.	Silk Fabrics
19.	Vegetables
20.	Frozen Fish
21.	Rice
22.	Dry food
23.	Dry Fish
24.	Fruits
25.	Home Textile
26.	Spices
27	Footwear (Jute)
28.	Tobacco
29.	Betel Nut
30.	Mustard Oil
31.	Cap
32.	Cosmetics & Toiletries