The garment industry, Bangladesh’s largest export-oriented sector, has traditionally focused on Western markets. However, with growing uncertainties in these markets, Bangladeshi exporters are increasingly looking to expand into new territories. Promising new markets include Japan, Australia, South Korea, China, Russia, and notably, the Middle East, where garment exports have recently grown by 10%.
Demand for Bangladeshi garments in Middle Eastern countries has surged, leading to significant export growth. Exports to Saudi Arabia increased by 58%, Turkey by 54%, and the United Arab Emirates by 41.96%. The Bangladesh Garments Manufacturers and Exporters Association (BGMEA) sees potential for further growth in this region. The Middle Eastern garment market, worth approximately $11 billion, presents a substantial opportunity. However, Bangladesh currently occupies only 4.7% of this market, with exports worth $517.7 million in the last fiscal year, up from $451.5 million the previous year.
Bangladeshi garments face competition from China, India, and Pakistan in the Middle Eastern market. Despite this, there is a growing demand for high-end clothing, and many expatriates from Bangladesh and the subcontinent in the region drive demand for traditional and Western clothing. However, the real challenge lies in direct exports; many Bangladeshi-made garments reach the Middle East through international brand intermediaries.
To capitalize on this market, the Bangladeshi government needs to take proactive measures. Embassies and trade missions must be more active, and comprehensive market research should be conducted to understand Middle Eastern consumer preferences. Establishing Bangladeshi brands and promoting them through regional expos and G2G meetings organized by the Ministry of Commerce in collaboration with the Ministry of External Affairs could be instrumental.
The Middle East’s demand for fashionable and branded products presents a lucrative opportunity. With strategic initiatives and government support, Bangladesh can potentially create a $5 to $6 billion market in the Middle East, leveraging its capability as the world’s second-largest apparel exporter.
