AD Ports has inked an agreement with Bangladesh’s Chittagong Port Authority to explore the development and operation of a multi-purpose port, according to a statement released on Thursday. Some 90% of Bangladesh’s international trade is conducted through Chittagong ports.

We knew this was coming: AD Port had reportedly been looking into constructing and managing one of four multipurpose terminals in Bangladesh’s Bay Terminal in cooperation with the Chittagong Port Authority (CPA) with an investment of USD 1 bn back in January under a public-private partnership framework.

Why this is significant: The UAE is considered as Bangladesh’s second-largest remittance source and the volume of non-oil trade between the two countries exceeds USD 2 bn, according to AD’s statement. Other gulf markets have also been eyeing Bangladesh as a potential market for trade including Oman’s Opal Bio Pharma. Saudi Arabia also plans to boost trade with Bangladesh in several sectors, including logistics and manufacturing. Bangladesh has allocated 300 acres of land to establish an economic zone for Saudi Arabia in Bangabandhu Sheikh Mujib Shipla Nagar.

Others are eyeing Bangladesh: Saudi terminal operator Red Sea Gateway Terminal International also signed a 22-year concession agreement for the Patenga Container Terminal in Chittagong last December.

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