Bangladesh’s blue economy remains largely underdeveloped, with scant investment from domestic and international sources, despite opportunities that could significantly bolster the nation’s economy.
Former collaboration proposals from China and the United States during the ousted Awami League government saw minimal response, leading to only limited progress in marine resource development.
Notably, Memorandums of Understanding (MoUs) were signed with China and India for research and potential investments, yet substantial initiatives remain elusive under the current interim government.
Blue economy & Vision 2041
Economists, including former Bangladesh Bank governor Dr Mohammed Farashuddin, emphasise the blue economy’s crucial role in achieving Sustainable Development Goals (SDGs) and Bangladesh’s Vision 2041.
“The extensive marine resources present a new frontier for advancing the nation’s economy through the blue economy,” he said. The Bay of Bengal is believed to hold significant mineral wealth, presenting a largely untapped economic potential for Bangladesh.
According to the World Bank, the blue economy involves the sustainable use of ocean resources for growth, job creation, and ecosystem conservation. Following the demarcation of maritime boundaries with Myanmar and India, Bangladesh’s economic zone expanded by 81 per cent of its mainland size.
However, this vast area remains underutilised, primarily due to limited foreign investment and bureaucratic challenges.
Investment barriers hinder progress
While the Asian Development Bank (ADB) and International Finance Corporation (IFC) have shown interest in investing $10 billion in private sector bonds for resource extraction in the Bay, several barriers deter investment.
Former Maritime Affairs Unit secretary Rear Admiral (retd) Md Khurshed Alam highlighted the necessity for a supportive legal and policy framework to facilitate investments. “However, substantial progress has remained elusive, primarily due to a lack of skilled personnel in maritime affairs across relevant departments. Consequently, visible advancement in marine resource extraction has yet to materialise,” he noted.
TIM Nurul Kabir of the Foreign Investors' Chamber of Commerce and Industry (FICCI) explained that attracting investment requires active support from both business and government sectors. “Sharing experiences with the global community will reassure potential investors,” he added.
Missed marine fisheries opportunities
A Chinese investment proposal worth Tk 250 crore for Bangladesh’s marine fisheries remains stalled due to bureaucratic red tape. This project, which included plans for deep-sea fishing vessels, processing centres, and cold storage, could significantly enhance Bangladesh’s marine catch capabilities.
Al Mamun Mridha, secretary general of the Bangladesh China Chamber of Commerce and Industries (BCCCI), told The Business Post that the project is on hold due to bureaucratic red tape.
Industry insiders said that the Hasina administration was cautious about increasing liabilities, as the debts of her government had already accumulated significantly.
Despite promising annual fish yields in the Bay of Bengal, Bangladeshi fishers lack advanced equipment, capturing only 7,00,000 tonnes out of an estimated 8 million tonnes.
“Bangladeshis primarily consume fish and shrimp, though demand for octopus, squid, and crab is increasing due to export potential,” said Professor Sayedur Rahman Chowdhury from Chittagong University’s Institute of Marine Sciences.
Over 20 commercially valuable fish species in the Bay of Bengal have both local and international demand, but traditional fishing methods limit the total harvest.
Lacking infrastructure & data
Infrastructure challenges hinder Bangladesh’s capacity to optimise marine resources, despite prior investments in survey initiatives. Since 2016, the RV Meen Shandhani has conducted surveys on marine life, yet its limited range necessitated assistance from Norway’s Fridtjof Nansen vessel for deeper surveys.
Recent efforts, including a survey of 5,200 square kilometres, aim to assess fish and aquatic plant stocks, but broader, consistent data collection is needed.
The government also licensed 18 companies for factory ships in 2027, which remain inactive due to lack of enforcement and resource constraints. “We have limited expertise in marine territories,” the Ministry of Fisheries and Livestock stated, underscoring the need for international collaboration in research and resource management.
Untapped mineral & energy reserves
Studies indicate that Bangladesh’s Bay of Bengal region holds valuable mineral reserves, including uranium, thorium, and heavy mineral sands. A 2018 study led by Md Khurshed Alam found an estimated 0.11 to 0.63 trillion cubic feet of gas hydrates, offering Bangladesh substantial energy potential. However, resource extraction remains unrealised due to the high costs associated with comprehensive seismic surveys.
“New gas fields would serve as a significant asset for Bangladesh,” said Professor Sayedur Rahman Chowdhury, suggesting that these resources could help meet the country’s energy demands.
However, offshore gas extraction has stalled since the depletion of the Sangu gas field in 2013, and none of the 26 newly designated blocks have seen meaningful progress.
Rising China-India interest
China and India have expressed interest in developing deep-sea ports and expanding Bangladesh’s maritime infrastructure. China is actively involved in the Payra port expansion and infrastructure projects, while Japan is engaged in Matarbari’s deep-sea port development. However, progress has been slow, with bureaucratic hurdles delaying the realisation of these critical infrastructure projects.
Al Mamun Mridha from the Bangladesh China Chamber of Commerce and Industry noted that while Chinese investment slowed during Covid-19, interest in the blue economy has revived. Chinese projects in wind and solar power are ongoing, and their fisheries investment proposal could alleviate Bangladesh’s reserve challenges.
Shipbuilding & biodiversity potential
Bangladesh’s coastal waters offer valuable economic opportunities beyond resource extraction, particularly in shipbuilding and biodiversity. Bangladesh ranks as Asia’s 13th largest shipbuilder and the world’s third in shipbreaking, accounting for 24.8 per cent of global shipbreaking activities.
Former foreign minister Dr AK Abdul Momen highlighted the potential in small and medium-sized vessels, where Bangladesh could secure a $4 billion market share.
The Ministry of Environment, Forest and Climate Change aims to leverage marine biodiversity by declaring critical coastal areas as Ecologically Critical Areas (ECA) to boost tourism while protecting ecosystems.
“Saint Martin Island, Cox’s Bazar-Teknaf Beach, and the Sundarbans are now ECAs to protect coastal biodiversity,” noted the ministry, adding that marine conservation efforts are underway.
Skilled workforce & policy needs
Bangladesh faces a critical need for a skilled workforce in marine sectors to ensure sustainable resource extraction. Professor Kawsar Ahmed from Dhaka University’s Department of Oceanography stated, “We need to survey our marine fish resources and build a skilled workforce for resource extraction. The government must adopt long-term strategies to attract local and foreign investment.”
To address these gaps, National Maritime Institutes are being established in various districts, and bilateral discussions with China and India focus on skill-sharing and research. However, experts stress the need for short- and long-term plans to develop Bangladesh’s marine capabilities and ensure eco-friendly resource management.
Future prospects and challenges
Despite an estimated $250 billion annual revenue potential from sectors such as oil and gas, fisheries, and tourism by 2030, Bangladesh has yet to fully capitalise on its blue economy. With resource-rich neighbours actively exploring their marine assets, Bangladesh’s delayed efforts highlight both opportunities and challenges.
Experts advocate for establishing robust policies, enhancing research capabilities, and fostering partnerships with global investors to unlock Bangladesh’s blue economy potential. Distinguished Fellow and member of the Board of Trustees at the Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman commented, “We neglected this sector for a long time, though it is now receiving some focus. There is immense potential for foreign investment in oil and gas exploration and in commercial fisheries.”
With appropriate policies, investment, and collaboration, Bangladesh could harness the blue economy to drive economic growth, create jobs, and contribute to its sustainable development goals.
