Bangladesh has approved the creation of its first free trade zones (FTZs), a move aimed at cutting export lead times, attracting foreign suppliers and positioning the country as a regional logistics and trade hub. The Cabinet Committee on Economic Affairs has given in‑principle clearance for FTZs near the upcoming Matarbari deep-sea port in Cox’s Bazar and at Anwara, close to Chattogram Port.
Officials indicated the planned FTZs will span around 600 acres, with development of the Anwara zone expected to start this year, while the Matarbari zone is targeted for development around 2030–2033 alongside port expansion. The zones are expected to support trade, logistics, and manufacturing activity and to deepen Bangladesh’s role as a regional trade and transshipment platform.
The FTZs are designed to operate outside the customs territory, allowing investors to import raw materials and machinery duty-free, add value and re-export, with the option to sell into the domestic market on payment of applicable duties. Warehousing is expected to emerge as a key revenue driver, as foreign suppliers will be able to store duty-free raw materials in the zones and supply exporters in Bangladesh and neighbouring countries on demand, helping to reduce export lead times.
Policymakers see the model as an evolution beyond traditional export processing zones, aligning Bangladesh with successful global hubs such as Dubai’s Jebel Ali Free Zone and free trade systems in Vietnam and Thailand. The FTZs are expected to attract light manufacturing, logistics operators, regional distribution centres and multinational firms seeking strategically located supply-chain bases in South Asia.
Economists and business leaders highlight that the Matarbari deep-sea port’s ability to handle large-draft vessels and the Anwara site’s proximity to Chattogram Port, the Karnaphuli Tunnel, an international airport and existing EPZs significantly enhance investor appeal. At the same time, they stress the need for complementary infrastructure upgrades, including key highway expansions, and for timely legal and regulatory amendments to operationalise the new free trade zones.
