DCCI Calls for dedicated Commercial Court to boost Investment
Dhaka, Bangladesh – Businesses are citing lengthy judicial processes as a major obstacle to both local and foreign investment in Bangladesh, and the Dhaka Chamber of Commerce and Industry (DCCI) is advocating for the establishment of a dedicated Commercial Court to address the growing number of trade-related disputes. The call to action came during a seminar titled ‘advancing Dispute Settlement and Contract Enforcement for Businesses’, organized by the DCCI in the capital on Tuesday.
DCCI President Taskeen Ahmed highlighted the increasing complexity of business disputes alongside the nation’s significant economic growth, encompassing issues related to contracts, investments, and intellectual property. He stated that approximately 4 million cases are currently unresolved in Bangladesh’s lower and higher courts,contributing to the investment slowdown. Ahmed also noted the limited effectiveness of the Arbitration Act, passed in 2001, and stressed the need for experienced judges and legal framework reforms alongside the creation of a specialized Commercial Court to accelerate trade and investment.
European Union Ambassador and Head of Delegation, Michael Miller, affirmed the EU’s close collaboration with the Bangladeshi government on legal reforms, emphasizing the potential for improved quality of life. He underscored the crucial role of Commercial Courts in attracting foreign investment as Bangladesh progresses towards Least Developed Country (LDC) graduation and pursues export diversification. Miller also indicated European companies have a strong interest in investing in Bangladesh’s logistics and shipping sectors, and that strengthening arbitration mechanisms would help alleviate current investment stagnation.
Mahbubur Rahman,Secretary of the Ministry of Commerce,acknowledged the overwhelming pressure on the judiciary due to the country’s high population density and the resulting increase in court cases. he suggested that resolving trade disputes outside of traditional courts would significantly improve the business climate. Rahman announced that the process of establishing a Commercial Court is currently underway, with a draft expected to be finalized within a month.
Md Abdur Rahim Khan, Additional Secretary (Export Wing) of the Ministry of Commerce and Vice Chairman of the Export Promotion Bureau (additional charge), explained that delays in dispute resolution negatively impact both Foreign Direct Investment (FDI) and export expansion. He proposed the creation of “legal institutions” seperate from traditional courts to facilitate quicker dispute resolution through negotiation.
The seminar featured a keynote paper presented by Barrister Md Sameer Sattar, former president of the DCCI, and included participation from officials of the Bangladesh Investment Development Authority, the Bangladesh International Arbitration Center, judges, representatives from international consultancy firms, and DCCI leaders.
