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To
Economic Zones of Bangladesh
LONG LIVE OUR FRIENDSHIP

Explore your investment in Economic Zones

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Md. Abdul Quader Khan

Social Safeguard Specialist
Bangladesh Economic Zones Authority
Prime Minister's Office
BDBL Bhaban, Level 15
12 Karwan Bazar, Dhaka 1215
Bangladesh 1
 Our Vision
 100 Economic Zones on 30,000 acres of land in
15 years.
 Employment generation for 10 million people.
 Increase export earnings US$40 billion per year
on an average .
 Establishment of an industrial township in
Mirsharai, Chittagong on 30000 acres of land.
 Contribute to become a developed nation by
2041.

Bangladesh Economic Zones Authority 25 May 2016 2

 Objectives of BEZA
BEZA was established by the Bangladesh
Economic Zones Act 2010 with broad the
objective of structural transformation of the
economy of Bangladesh through:
• Attracting FDI
• Developing and diversifying export
• Promoting skill, Sharing knowledge and
Generating employment
• Ensuring dynamic economic benefits for the
domestic industry
• Social and Environmental sustainability
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Why Bangladesh is your optimal
Destination for investment
Consistent Economic Growth.

Industrious low-cost work force.

Low Cost Energy

Strategic location of Economic Zones.

Competitive Incentives to the Economic Zone Developers and Units
Established in the Economic Zones.

Polices and reforms.

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 Why Bangladesh is your Optimal
Destination for Investment
Significant access to developed countries.

Access to markets of neighbouring countries

Liberal FDI policy

Treaties with countries to avoid double taxation.

Vibrant pool of talented and qualified young population

Increase in per capita income.

Rising FDI and foreign trade.

 Why Bangladesh is your optimal
destination of investment
Market Access.
According to doing business report 1014 Bangladesh stands in the south
Asian region in the following positions.

The 2nd easiest place for Doing Business in the SA region

2nd easiest place in the region to do business.

2nd in region on ‘starting a business’.

1st in region on ‘protecting investors’

1st in region on ‘ease of paying tax’

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 How Bangladesh is attractive ?
Japan External Trade Organization (JETRO) in its 2014-15 survey
mentioned that Bangladesh has continued to be an attractive
destination for Japanese companies to do business due to its
lower production cost and labor wage compared to those of 19
countries in Asia and Oceania. In comparison to Japan, the cost
of production in Bangladesh is less than half, (49.5 percent),
while it is 81.9 percent in China, 73 percent in Vietnam and 80.6
percent in India.

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BEZs are Regionally Competitive…
Fiscal Incentives For
Developers

Income Tax exemption 12 years: First 10 years

100%, 11th year 70%, 12th year 30%

Exemption from custom duty on all

imports for development of economic zone

VAT Exemption on local purchase

Excluding petroleum products
 BEZs Incentives are Regionally
Competitive…
Fiscal Incentives For Developers

Exemption from stamp duty and registration

fees for land registration for the first time

Exemption of stamp duty and registration

fees of loan/credit document

Exemption from tax on dividend income for 10

years

VAT Exemption on Electricity.

 Incentives for Unit Investors
Tax Holiday for 10 years

Duty free import of raw materials

Exemption form dividend tax

Full Repatriation of capital and dividend

No ceiling of FDI
100% Backward linkage raw-materials and
accessories to sell for EOI in DTA
20% sale of finished product to DTA by EPA
 Incentives for Unit Investors
Sub-contracting with DTA allowed

Exemption of stamp duty and registration fees

Exemption of VAT on all utility services

Duty exemption on export

Exemption of Custom Duty for import of vehicles

Exemption of double taxation subject to Double taxation agreement

Exemption of Salary income from IT for expatriates

 Incentives for Unit Investors
Consider Economic Zone as custom bonded area

Foreign loan is allowed in compliance with existing laws

FC Account for non-residents

FC Account for both local and joint venture industry

Foreign investors to be free to inter into JV

Tax exemption on capital gains from transfer of shares

Provision of transfer of shares by foreign shareholders to local
shareholders and investors
Incentives for Unit Investors
Issuance of work permits to foreigners is
allowed up to 5% of total oficers/employees of
an industrial Unit.

Re-investment of remittable dividend to be

treated as new foreign investment.

Resident visa for investment of US$

75,000 or more.

Citizenship for investment of US$

500,000 or more.
 Non-Fiscal Incentives
100% foreign Foreign currency Sub-contracting
ownership loan allowed in with Domestic
compliance with Tariff Area
permissible allowed
existing laws
• No ceiling on • Hold • Transfer of
foreign nonresident shares of
investment foreign foreign
currency shareholders
• Full deposit account allowed
repatriation of • 50 years land
capital and • EZs will enjoy lease period
dividend MFN status with scope of
extension
Comparative Income tax/ Corporate
Tax exemption for Developer
Period TAX Exemption
EZ/SEZ Other than EZ
1st Year 100% 100%
2nd Year 100% 80%
3rd Year 100% 70%
4th Tear 100% 60%
5th Year 100% 50%
6th Year 100% 40%
7th Year 100% 30%
8th Year 100% 20%
9th Year 100% 10%
10th Year 100%
11th Year 70%
12th Year 30%
Comparative Income tax/ Corporate
Tax exemption for unit investors
Period Tax Exemption
EPZ EZ/SEZ
1st Year 100% 100%
2nd Year 100% 100%
3rd Year 50% 100%
4th Tear 50% 80%
5th Year 25% 70%
6th Year 60%
7th Year 50%
8th Year 40%
9th Year 30%
10th Year 20%
Potential Sectors For Investment
In Economic Zones

Shipbuilding & Ship

Repairing, Steel Leather Goods
Rerolling Plants
Power
Light Engineering & Auto
Parts
Telecommunication
Pharmaceuticals IT-enabled services
LNG Terminal & Petro-
Large-scale Export Chemical Plants
Oriented RMG
Agro-Processing
Jute and including Fish
Jute-based product Processing & Cold Chain
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 BEZA accomplished in the last one year
several milestones …
• Acquired land bank of more than 10000 acres
• Land Acquisition in progress for 15000-20000 acres.
Expected to be done in next one year
• Awarded license to 7 private economic zones
in the country
• Signed developer agreement for the first PPP economic
zone
• World Bank extended its support to BEZA till 2020
• Ongoing discussions with JICA to become equity partner
in Japanese Economic Zones
• MOUs for economic zones development signed with India,
China and Japan
 Status of Private EZ Development
N Name Area Location Progress
(acre)
2 Abdul
Monem
216 Gajaria ,
Munshiganj • BEZA awarded license on 1 March
PEZ 2015.
• Abdul Monem invested US$ 30
Million
• 90% construction of Boundary wall
is completed
• MoU is signed with 02 unit
investors
• Earth filling is almost completed
• Feasibility study and Master Plan
have been cleared by BEZA
• EIA is submitted to DOE for 19
 Status of Private EZ Development
N Name Area Location Progress
(acre)
3 Meghna 245 Sonargoan . • BEZA awarded license to Meghna PEZ on 11
PEZ Narayanganj
May 2015.
• Meghna group invested US$ 56 Million
• Construction of Boundary wall is 80%
completed
• Construction of administrative building is going
on
• Land development work is going on
• Feasibility study and Master Plan have been
cleared by the BEZA
• EIA is submitted to DoE .
4 Meghna 80 Sonargoan . • BEZA awarded license to Meghna Industrial EZ
Industria Narayanganj
on 11 May 2015
l Zone
• Meghna group invested US$ 14.92 Million
• Construction of Boundary wall is in progress
• Appointed TAS firm for Feasibility study .
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 Status of Private EZ Development
N Name Area Location Progress
(acre)
5 Bay PEZ 40 Gazipur • BEZA awarded license to Bay EZ dated on
Sadar
11 February 2016
• Bay group invested US$ 30 Million
• Construction of Boundary wall, land
• MoU is signed with 02 unit investors
• development , administrative building is in
progress
• Feasibility study and EIA is in process
6 Aman 90 Sonargoan , • BEZA awarded license to Aman EZ on 15
PEZ Narayanganj
February 2016
• Aman group invested US$ 68 Million
• Construction of Boundary wall, land
development , administrative building is in
progress
• Aman cement invested US$ 120 million
• Appointed consultancy firm for feasibility21
 Status of Private EZ Development
N Name Area Location Progress
(acre)
7 Arisha 51 Bosila ,
Keraniganj
• Only 4 km away from National
PEZ
, Dhaka Parliament Bhaban
• BEZA awarded license to Arisha EZ on
March14, 2016
• Arisha group invested US$ 80
Million
• Construction of Boundary wall is in
progress
• Appointed consultancy firm for
feasibility study and EIA.
• 90% Land development completed

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 Mongla EZ
• Mongla EZ will be the first PPP EZ in the country encompassing
an area of 205 acres. Powerpac holding limited and
Poweerpac Mutiara Keraniganj Power Plan – a joint venture
company has been selected for being appointed as the
developer of this zone

• Construction of Access Road,

Bridge, Admin Building,
Boundary Wall, Power Sub-
station and water supply line
are ongoing.
• Master Plan, Feasibility report
and EIA have been approved.
 Mirsarai EZ
• Developer will be appointed by August
2016 .
• Construction of Access Road , Bridge, Site
Development , Retaining Wall, Sluice gate
and Embankment are ongoing.
• Roads & Highways Department will
construction of a 4 lane highway at
Mirsharai EZ.
• BWDB prepares a DPP for protection
embankment at Mirsharai EZ , which is
now at planning commission for approval.
• Construction of water line and electricity
will be carrying out as deposit works by
DPHE and REB respectively.
 Shreehatta Economic Zone
The Economic Zone is located in Maulvibazar
District of Sylhet Division, at the converging • Land parcel: 240 acre
point of the Dhaka – Sylhet Highway and • 35 km from Sylhet and located
Sylhet – Maulvibazar Highway at Sherpur. adjacent to Dhaka-Sylhet
The site is 35 km from Sylhet and 23 km from Highway
Maulvibazar. Sreemangal Railway Station is • Gas off-take is available at 2 km
43 km from the site.
from the site
• Surface water available from
Kushiyara River (1.8 km)
• Optical fibre line passing through
the highway
• Suitable for integrated textile,
ceramics & table wear,
pharmaceuticals, paint, food
processing etc.
Shreehatta Economic Zone Bids invited for selection of
is the next-in-line for developer for development of
development Shreehatta EZ 8
Bangladesh Economic Zones Authority
 Sabrang Tourism Park
Appointment of Developer: International
Proposal will be invited in December 2016.

• Sabrang Tourism park will be the first exclusive tourism park in the Cox’s
bazar district encompassing an area of 1027 acres.
• Sabrang is an amazing hill and sea beach territory, multifaced, diverse
and admirably beautiful.
• Advantages of the Zone
• Located with exclusive beach front
• Half an hour Sea cruise to St.Martin-a coral island
• 8 km away from Teknaf Land Port
• 1 hour proximity to cox’s Bazar Airport
• Availability of local operators in tourism sector
Bangladesh Economic Zones Authority
 Naaf Tourism Park
• Specialty of Tourism Park
• Themed Cruise for SentMartin coral island
5 Star hotel , restaurant , Honeymoon
park
• Multi Formatted Food Court , Themed
Pavilions, Amphi Theatres
• Jungle Jogging Tracks, Night Camps, Eco
Friendly Resorts
• High mast Restaurant and Souvenir Shops
, Fishing
• Mini Golf Course , Light and Sound show
Entertainment zone
• Infant Swimming pool , Cable car
• Sky bridge , Touch Pool
• Ocenarium, Water sports Complex
• Game parlours , Birds Watching and View
Towers
Bangladesh Economic Zones Authority
 East Coast Group Economic Zone (Proposed)

• Located in the Sylhet Division

• Approx. 150 acres of land
• Adjacent to National Highway
• Rail line is in close proximity of site
• 78 km frim Akhaura land port
• 84 km from Sylhet International
Airport
• Power lines adjacent to the site
• Gas transmission line runs under the
site
• Available surface and round water

Bangladesh Economic Zones Authority

 Fokrul Islam Chowdhury Economic Zone
• Located in the Sylhet Division
• Adjacent to Sylhet International Airport
• Rail line is in close proximity of site
• 84 km from Sylhet International Airport
• Power lines adjacent to the site
• Gas transmission line runs under the site
• Available surface and round water
Item Key Information

Land Gross area 70 acres

Industries to be set • Garments
up
Infrastructure Gas connection , Power
facilities Connection and Land
development will be
completed by December 2017
Employment Employment creation is
Creation expected to be 30,000
Bangladesh Economic Zones Authority
 Stone Crushing Zone, Sylhet
The stone crushing Zone is located in Sylhet District The site is 35 km from Sylhet .
Proposed stone crushing zone will be first planned stone crushing zone in
Bangladesh which will help to protect environment and ensure health safety of
workers.
Item Key Information

Land Gross area 133 acres

Industries to • Stone Crushing

be set up

Infrastructure Gas connection , Power

facilities Connection and Land
development will be completed
by December 2017

Employment Employment creation is

Creation expected to be 20,000

Bangladesh Economic Zones Authority

 Jaflong Tourism Park

Location Details
Initially 255.83 acres land parcel
in Goaingat, Sylhet

~Road sides of Dhaka-

Jaflong Highway

~About 55 km away from Sylhet

International Airport

~About 330 km away from

Chittagong Sea Port

~ First planned tourism park in

Sylhet

Bangladesh Economic Zones Authority 13

 Realizing the Industrialization of
Bangladesh with UK Partners

You are most welcome

to the land of Golden
Bengal !
Bangladesh and BEZA wish to invite
and work together with UK Industries
and learn core values which are
essential for industrialization of the
Nation; Advanced Technologies,
Productivity, Human-resources
Centric Management, and more,
based on our long-lasting friendship
between Bangladesh and UK!

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Inauguration of Development Activities of 10 EZs
 Activity in picture

MoU signed with India for development EZ in G2G

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Development Progress of Mongla EZ

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Development Pictures of Mirsarai EZ

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Aman EZ

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Bay EZ

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 Activity in picture

Development progress of Abdul Monem Private EZ

Construction progress of Meghna Private EZ

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Arisha Economic Zone

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Economic Zones –License giving ceremony

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 MoU for Utility Connection to EZs

MoU with REB MoU with Titas Gas

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Jaliardiwp SEZ Concept plan

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Thank You