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Wahab's Wealth Watch: Generating Employment, Fostering Innovation, and Building a Sustainable Future

Over the past decade, Bangladesh's startup ecosystem has emerged as a key driver of economic growth, job creation, and innovation. Startups are addressing local challenges, creatig essential infrastructure, and reducing youth unemployment—critical to achieving the Sustainable Development Goals (SDGs). Sectors such as e-commerce, fintech, logistics, and edtech are thriving, supported by a young, tech-savvy population and growing digital connectivity, positioning Bangladesh as an emerging startup hub.


Prominent startups like Ridmik (Bangla-language keyboard), Chaldal (online grocery), Pathao (logistics and ride-sharing), ShopUp (micro-enterprise support), and iFarmer (agri-fintech) exemplify the ecosystem’s success. These ventures have attracted global investments, created thousands of jobs, and established Bangladesh’s reputation on the international stage.


Visionary founders and key investors like Tanveer Ali, Rahat Ahmed, and Nazim Farhan Choudhury have played crucial roles by providing early-stage funding, strategic mentorship, and international connections. They have helped startups secure foreign investment, scale sustainably, and address key challenges like unemployment and financial inclusion. The continued growth of Bangladesh’s startup ecosystem requires sustained investment, supportive policies, and collaboration between stakeholders. The ecosystem’s progress highlights how local solutions can attract global recognition and contribute to sustainable economic growth and global competitiveness.


Sustaining Bangladesh's startup growth requires policy reforms, regulatory clarity, and public-private collaboration. Key initiatives like the GP Accelerator and YY Ventures demonstrate the effectiveness of public-private efforts in providing startups with resources and mentorship. Embassy-backed funding has boosted international confidence in Bangladesh’s venture capital potential.


Proactive policies and simplified regulations are crucial to maintaining progress. Collaboration between the government and private sector is essential to foster an innovation-friendly environment that supports startup growth and economic resilience. By encouraging entrepreneurship, Bangladesh can reduce unemployment, unlock new opportunities, and position itself as a regional leader in innovation.


Founders like Waseem Alim, Hussain Elius, Afeef Zaman, and Fahad Ifaz, supported by mentors such as Tanveer Ali, Rahat Ahmed, and Nazim Farhan Choudhury, have built the ecosystem’s foundation. Protecting their contributions is key to inspiring future leaders and sustaining investor confidence. By uplifting these ecosystem champions and promoting strategic partnerships, Bangladesh can secure its position on the global stage and build a future driven by innovation and economic prosperity.



IPO Rules 2025: Key Regulatory Update

The Bangladesh Securities and Exchange Commission (BSEC) has introduced the Public Offer of Equity Securities Rules, 2025, effective 30 December 2025, replacing the Public Issue Rules, 2015. The new framework represents a major step toward greater transparency, stronger governance, and improved investor protection in Bangladesh’s capital market.

A key reform under the 2025 Rules is the strengthened book-building process, which now includes mandatory roadshows, active participation of Eligible Investors (EIs) in valuation, and competitive bidding to determine offer prices. This shift ensures a more market-driven price discovery mechanism.

The Rules also raise issuer eligibility standards, introducing clearer capital, profitability, and disclosure requirements, as well as mandatory underwriting, enhanced corporate governance, and audit compliance. Importantly, the responsibilities and legal accountability of market intermediaries—such as issue managers, underwriters, auditors, and valuers—have been explicitly defined and reinforced through mandatory due diligence certifications.

Overall, the IPO Rules 2025 align Bangladesh’s IPO regime with international best practices and require issuers and advisors to adopt higher compliance and due diligence standards.


What This Means for Clients

  • More Transparent IPO Pricing: Offer prices will be determined through market-based mechanisms, reducing pricing uncertainty and improving fairness.

  • Stricter Eligibility Requirements: Companies planning to go public must meet higher capital, governance, and disclosure standards.

  • Increased Preparation Time: Enhanced documentation, valuation, and due diligence requirements mean earlier planning is essential.

  • Greater Accountability: Advisors and intermediaries are subject to more stringent regulatory scrutiny, thereby improving overall transaction quality.

  • Stronger Investor Confidence: Improved governance and disclosure are expected to enhance market credibility and investor trust.

VAT Exemption on Metro Rail Services: A Step Toward Sustainable Urban Mobility

The Government of Bangladesh has issued a gazette notification granting a temporary exemption from Value Added Tax (VAT) on metro rail services under the Value Added Tax and Supplementary Duty Act, 2012. The exemption will remain effective from 1 January 2026 to 30 June 2026.

This policy measure is designed to promote metro rail as a fast, safe, time-efficient, and environmentally friendly mode of mass transportation. By reducing travel costs, the government aims to encourage broader public adoption of metro rail services, ease traffic congestion, and support sustainable urban mobility in major cities.

The exemption also aligns with broader fiscal and environmental objectives, including reduced carbon emissions and improved urban livability through modern public transport solutions.


Key Takeaway: The VAT exemption is expected to benefit daily commuters while reinforcing the government’s long-term vision for affordable, efficient, and sustainable public transportation.


Bangladesh Gazette Update: New Comprehensive Regulations Issued for Inland Shipping, Ports, and Logistics

On 30 December 2025, the Government of Bangladesh issued a new comprehensive regulatory framework through the Bangladesh Gazette (Extraordinary) governing inland shipping, port operations, shipping agents, and logistics-related compliance.

The regulation modernizes existing practices by introducing clear legal definitions, mandatory digital reporting systems, and stronger enforcement mechanisms. Key provisions include the compulsory use of electronic platforms such as the Integrated VAT Administration System (IVAS), stricter registration and reporting requirements for shipping agents, and alignment with international safety standards, including the IMDG Code, the IATA Dangerous Goods Regulations, and the Verified Gross Mass (VGM) rules.

The framework enhances regulatory oversight by empowering authorities to conduct inspections and audits, and to impose penalties for non‑compliance, including license suspension and legal action for misreporting or fraud. Dispute resolution pathways, including admiralty jurisdiction, are also clearly defined.

Overall, the regulation marks a significant step toward greater transparency, safety, and digitalization in Bangladesh’s shipping and logistics sector. Businesses operating in this space should review their compliance practices promptly to avoid operational and regulatory risks.


Bangladesh Introduces New Regulations for Insurance Surveyors and Loss Assessors

The Insurance Development and Regulatory Authority (IDRA) has issued the Insurance Surveyor and Loss Assessor (Duties, Responsibilities and Code of Conduct) Regulations, 2025, strengthening governance and professional accountability in Bangladesh’s non‑life insurance sector.

Published in the Bangladesh Gazette (Extraordinary) on 25 December 2025, the regulations take immediate effect and apply to all insurance surveyors and loss assessors operating under the Insurance Act, 2010. The new framework clearly defines professional roles, ethical obligations, and reporting standards, aiming to improve transparency and reliability in insurance claims assessments.

Under the regulations, surveyors are required to conduct independent inspections, objectively assess losses, verify claim validity, and submit detailed, reasoned reports within stipulated timelines. The rules emphasize neutrality, confidentiality, professional competence, and avoidance of conflicts of interest, while mandating disclosure of any personal or business relationships with insurers or insured parties.

The regulations also introduce stricter documentation and record‑keeping requirements, obligating surveyors to retain assessment records for at least three years. Any misuse of privileged information, unethical conduct, or deviation from approved procedures may attract regulatory action.

Overall, the new regulations mark a significant step toward enhancing credibility, consistency, and consumer confidence in Bangladesh’s insurance claims process, aligning industry practices with modern regulatory standards.


Royal Enfield Launches Its First Manufacturing Facility and Showroom in Bangladesh

Royal Enfield has launched its first manufacturing unit and showroom in Bangladesh. Located in Chauddagram, Cumilla district, this facility marks Royal Enfield's sixth manufacturing plant outside India. Established in partnership with IFAD Motors, the plant spans 7.83 acres and can produce over 30,000 motorcycles annually. It will assemble four models—Hunter 350, Meteor 350, Classic 350, and Bullet 350—specifically for the Bangladesh market.


The new Dhaka showroom, the brand's first in Bangladesh, will offer motorcycles and customer support. Royal Enfield’s expansion into Bangladesh is driven by recent regulatory changes allowing the sale of motorcycles up to 350 cc, which present significant growth opportunities in the mid-size segment. This development is part of the company’s broader strategy to strengthen its South Asian and global presence.


Excelerate Energy Plans Increased Investment in Bangladesh’s Energy Sector

Excelerate Energy, a US-based company, plans to increase its investment in Bangladesh's energy sector and decarbonization efforts, according to CEO and President Steven Kobos. During a meeting with Chief Adviser Professor Muhammad Yunus in Dhaka, Kobos expressed the company's intent to expand and ensure a stable supply of liquefied natural gas (LNG). Excelerate Energy operates two offshore floating storage and regasification units, supplying 1.1 billion cubic feet of gas daily, making up 34% of Bangladesh's gas supply.


Kobos, who also chairs the US-Bangladesh Business Council, praised Yunus for boosting business confidence in the country and noted growing interest from US companies. Yunus welcomed increased US investment and highlighted efforts to improve Bangladesh's business environment. Excelerate’s delegation included key company officials, while Bangladeshi officials from the Investment Development Authority and the energy sector also attended the meeting.


Bangladesh aims to strengthen its green energy collaboration with China.

During a recent dialogue organized by the Centre for Policy Dialogue (CPD) in Bangladesh, experts emphasized that China is transforming its energy landscape and providing substantial support to other countries. The discussion focused on new energy cooperation between China and Bangladesh and highlighted Bangladesh's goal of achieving 40% renewable energy by 2041. Participants noted that China's experience in renewable energy could help Bangladesh reach this target, which requires significant investment. CPD executive director Fahmida Khatun stressed the need for considerable funding, while research director Khondaker Golam Moazzem suggested that Bangladesh should adopt measures to attract Chinese investment, such as tax incentives and streamlined documentation. Md Abdur Rahman Khan, the chairman of the National Board of Revenue, indicated that the government is working to eliminate controversial tax laws to facilitate increased investment.


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