Sabinco unveils $200 million investment plan for industrialisation, awaiting Saudi approval

The Saudi-Bangladesh Industrial and Agricultural Investment Company (Sabinco) has drawn up a comprehensive plan to invest 200 million US dollars across ten priority sectors to accelerate industrialisation and production-oriented economic activity in the country. The proposed investment covers promising sectors such as green energy, food and agro-product processing, pharmaceuticals and raw materials, electronics and electric vehicles (EVs).

However, implementing this large investment plan depends on both governments approving a new sovereign equity fund. The Bangladesh government has already given in-principle consent to provide 100 million dollars in equity, but final consent on funding from the Saudi government is still awaited.

To maintain the 50:50 partnership balance in the company, Bangladesh Finance Minister Amir Khosru Mahmud Chowdhury sent a formal letter on October 7 to Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan, requesting an equal allocation of funds. If both governments release the funds, Sabinco's current paid-up capital will rise from 60 million dollars to 260 million dollars.

Sabinco Managing Director Md. Maruf Ur Rahman Majumder told a media outlet that financing in renewable energy and agriculture is already ongoing, and work is now under way to expand further into pharmaceuticals, energy and agro-based industries. On the matter he said, 'Our management company has agreed in principle on increasing the capital. If the governments of the two countries take the initiative to provide new capital, our investment capacity will increase significantly.'

Under the company's strategy as of September 2026, the largest allocation — 40 million dollars — has been proposed for large and captive solar power projects. A further 20 million dollars has been set aside for effluent treatment plants (ETP), zero-liquid-discharge facilities and environment-friendly modernisation of factories.

In addition, 30 million dollars is planned for active pharmaceutical ingredients (API) and drug manufacturing, and an equal 30 million dollars for modern cold chains, grain storage and dairy-poultry processing. The remaining 80 million dollars has been allocated to areas such as EVs and batteries, semiconductors, healthcare infrastructure, leather, diversified jute products and recyclable packaging.

However, the final implementation of the projects will depend on environmental standards, credit risk and technical vetting. The strategy paper states these conditions clearly, so that investment decisions remain sustainable.

Beyond reducing pressure from import-dependent fuel and developing local industry, another key aim of the plan is to attract Saudi investors to Bangladesh. Presenting the proposed sectors as aligned with 'Saudi Vision 2030', the strategy paper stresses creating joint investment opportunities with Saudi giants such as Acwa Power, Almarai and Sabic.

The new capital could also make it possible to raise a further 300 to 500 million dollars in concessional loans from multilateral and Arab development agencies. According to financial projections, Sabinco's total assets are targeted to reach 8,520 crore taka by fiscal year 2028-29, with annual net profit of 282 crore taka, of which 25 percent would be distributed equally between the two countries as dividends.

But this overall progress ultimately depends on Riyadh releasing the funds and on institutional financial discipline. Without the Saudi government's final consent, the 200-million-dollar plan will remain on paper — so all eyes are now on Riyadh's decision.