Turkey’s Nigella World paves way for new trade era

With immense untapped potential for trade and business, Turkey’s renowned company, Nigella World, is set to make a groundbreaking investment of approximately $8 million in Bangladesh’s agriculture sector.

This marks the first time a Turkish company will invest in Bangladesh’s agro sector, a development expected to elevate bilateral trade between the two nations to new heights.

As part of the “Asia Anew Initiative,” Turkey is aiming to strengthen its ties with Bangladesh, one of its long-standing partners in Asia.

Experts believe that the two Muslim-majority nations could serve as pivotal trade gateways between Europe and South and Southeast Asia.

In 2023, the bilateral trade between Bangladesh and Turkey reached approximately $1 billion, a figure which experts believe still falls short of the trade potential between the two nations.

Data from the Export Promotion Bureau and the Bangladesh Bank revealed that trade between the two countries was valued at $918.80 million during FY23. Of this, Bangladesh imported goods worth $423 million from Turkey and exported $495.81 million in return.

Bangladesh’s import items from Turkey primarily include machinery, mechanical appliances, electrical equipment, sound recorders and reproducers, textiles, chemicals, vehicles, aircraft, arms, and transport equipment. In contrast, Bangladesh exported items such as jute yarn, cotton T-shirts, trousers, pullovers, sports footwear, and plastic soles.

Looking at past trade data, the bilateral trade in FY22 amounted to $888.41 million between the two nations, with Bangladesh importing $430.26 million and exporting $458.15 million to Turkey.

In FY21, trade stood at $871.55 million, with imports from Turkey totaling $371.76 million and exports from Bangladesh reaching $499.79 million. The trade figures for FY20 and FY19 were $686.41 million and $705.35 million, respectively, with imports from the European nation growing year by year.

Currently, around 20 major Turkish companies are operating directly in Bangladesh, focusing on sectors such as garments, textiles, accessories, chemicals, engineering, construction, and energy.

Industry insiders have highlighted the significant investment potential for Turkish businesses in Bangladesh, particularly in the areas of pharmaceuticals, tourism, jute, agriculture, and technology.

$50m agro export target by 2025

In a conversation with the Daily Sun on Sunday, Ahmed Rehanul Bari Chowdhury, managing director of Happy Haat, said a memorandum of understanding (MoU) would be signed between Nigella World and Happy Haat in Dhaka on 15 October.

The signing ceremony will be attended by Ashraful Haq Chowdhury, secretary general of the D-8 Chamber of Commerce & Industry, along with Nigella World’s Group Chairman, Fatih EKE from Turkey, and its Adviser, Laura Acar.

“The reputed Turkish company will invest $7 to $8 million in Bangladesh’s agriculture and technology sectors by 2025,” Rehanul Bari Chowdhury stated.

“We plan to export various types of spices made from Bangladeshi raw materials to the EU and other countries. Our goal is to reach $50 million in exports of spices and other supplements by next year through our joint efforts,” he stated.

He highlighted that this is the first Turkish company to invest in Bangladesh’s agriculture sector, aiming to ensure a safe and reliable food supply.

“Currently, India exports around $25 billion worth of spices to EU destinations, whereas Bangladesh has no contribution in this market. We see a huge potential here and aim to play a significant role. Turkey will serve as a gateway for us to trade with the EU and other countries,”he stated.

He further explained that Happy Haat has acquired a 20-katha plot in Gazipur to establish a factory, with plans to expand their operations to Mirsarai and Cox’s Bazar. “We believe that this initiative will elevate bilateral trade between the two countries to new heights,” he continued,

Rehanul Bari also mentioned that Happy Haat has a network of 1,200 contracted farmers across Bangladesh who provide safe and original agro products. The company has already exported unadulterated goods such as spices and mangoes to Dubai, the UK, and Canada.

Optimism for future cooperation

At a recent event, Mahbubul Alam, former president of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI), expressed optimism about future collaboration between Bangladesh and Turkey, noting that both countries offer substantial untapped potential for trade and business due to their geographical locations.

“We are optimistic about future cooperation between the two nations, particularly in areas such as pharmaceuticals, tourism, jute, and technology, where Turkish investments could flourish. We encourage trade promotion activities and propose collaboration in the development of high-tech products and tourism infrastructure,” Alam stated.

Echoing these sentiments, Hidayet Onur Ozden, chairperson of the Turkey-Bangladesh Business Council, emphasised the many opportunities to further strengthen bilateral trade.

He added that economic ties between the two countries are improving steadily, and now is the time to enhance growth and mutual prosperity.