Bangladeshi Company Participation in Dubai Chamber Sees Impressive 47% Year-on-Year Growth

27 Sep, 2023

Bangladeshi Company Participation in Dubai Chamber Sees Impressive 47% Year-on-Year Growth

In a significant development, the Dubai Chamber of Commerce has reported a remarkable 47% year-on-year increase in the number of new Bangladeshi companies joining its ranks during the first half of this year. The chamber announced that a total of 1,044 new Bangladeshi companies became members, bolstering the overall count to 10,975 registered Bangladeshi firms as of the beginning of this month.

This surge in Bangladeshi company memberships comes at a time when concerns regarding illegal fund transfers abroad, particularly through practices like trade misinvoicing and hundi (an informal money transfer method to reroute remittances sent by Bangladeshis abroad), have been a topic of discussion within the local business community. Officially, Bangladeshi companies require approval from the Bangladesh Bank to transfer funds abroad, and only a small number have received such approval for foreign investments. As of January this year, the Bangladesh central bank had permitted 17 companies to invest a total of approximately $40.15 million globally. However, the specific investment amounts by these foreign companies have not been disclosed by Dubai Chamber.

The Dubai Chamber also revealed that a total of 30,146 new companies joined its ranks during the first half of 2023. Indian businesses led the list of new members, followed by those from the United Arab Emirates and Pakistan. Indian companies constituted 22.3% of the registered firms by the end of June 2023, with 6,717 new Indian-owned companies becoming members in the first half of the year—an impressive 39% increase compared to the same period last year. Meanwhile, Pakistani companies saw a significant 59% increase in their numbers, with a total of 3,395 new Pakistani companies joining the chamber, bringing the total count to 40,315.

Additional countries such as Egypt, the United Kingdom, and China also featured prominently in the list of new members at Dubai Chamber. Jordanian and Lebanese companies made notable contributions as well.

Dubai Chamber reported that a substantial portion of the new member companies, 42.4%, are engaged in trade and repair services. Real estate, renting, and business services accounted for 30.8%, while businesses in the construction industry represented 7.2% of the total. The transport, storage, and telecommunications sector contributed 6.3% to the overall activity among new companies joining the chamber in the first half of the year.

Commenting on this growth, Mohammad Ali Rashed Lootah, President and CEO of Dubai Chamber, highlighted that the number of new chamber members had surged by 43% during the first half of 2023. He emphasized that the diversity of nationalities among the new members reflects the dynamic and vibrant business environment in Dubai, as well as the emirate's continued ability to attract foreign direct investment.

Furthermore, Dubai Chamber reported that Japan experienced an impressive 253% increase in new member company ownership during the first half of 2023, with a total of 60 new Japanese-owned companies joining the chamber. This growth underscores the international appeal of Dubai's business landscape and its allure as a destination for foreign businesses.