Bangladesh’s foreign direct investment (FDI) landscape registered a powerful rebound in 2025, with inflows scaling a multi-year high of US$ 1.78 billion, according to the UNCTAD World Investment Report 2026.
The report also highlights that infrastructural developments, and the expansion of the manufacturing sector, Bangladesh’s FDI figure skyrocketed to $ 19.63 billion in 2025 from $2.16 billion in 2000—reflecting a massive expansion in foreign asset accumulation.
The report shows a substantial year-on-year jump, positive policy liberalizations, and growing long-term investment stocks, positioning Bangladesh as a top destination for greenfield ventures among Least Developed Countries (LDCs).
The core highlight of the UNCTAD report is the phenomenal growth of Bangladesh's long-term investment ecosystem over the last 25 years.
Outward Investment Footprint: While remaining comparatively modest, Bangladesh’s outward FDI stock (investments made by domestic companies abroad) also saw progressive movement. It rose from just $ 68 million in 2000 to $ 314 million by 2025, showing a slow but steady integration of local businesses into global value chains.
2025 Inflows Hit 5-Year High
In the short-term window, the country saw a notable recovery following recent global shocks. FDI inflows to Bangladesh reached $ 1.78 billion in 2025, marking a sharp year-on-year increase from the US$ 1.23 billion recorded in 2024. The 2025 figure represents the single highest annual influx of foreign capital during the 2020–2025 monitoring period.
Furthermore, UNCTAD pointed out that greenfield project activity—the setup of entirely new corporate and industrial operations—remains heavily concentrated in Bangladesh, cementing its status as a preferred hub among LDCs even as foreign investments shrink globally.
This continuous rise in investment is heavily tied to recent policy liberalizations. In 2025, Dhaka enacted critical reforms aimed at easing the investment climate, most notably through the relaxation of foreign exchange restrictions to assist multinational operations.
Additionally, Bangladesh became one of a select group of nations to conclude an ‘Agreement on Reciprocal Trade’ with the United States.
Under this framework, Bangladesh has agreed to consider the establishment of an investment screening mechanism, while paving the way for advanced bilateral cooperation, information sharing, and mutual economic security regarding inbound capital.
Emerging Legal Challenges:
Despite the historic upswing, the UNCTAD report flags newly emerging legal complexities. In 2025, Bangladesh was identified as one of seven LDCs—alongside nations like Angola, Myanmar, and Senegal—to face new Investor–State Dispute Settlement (ISDS) legal cases brought forward by foreign investors. Managing these legal arbitrations transparently will be crucial for the country as it aims to protect its hard-earned reputation as a safe, lucrative destination for international capital in the decades ahead.