ISLAMABAD:Türkiye has proposed a major $2.5 billion investment in Bangladesh over the next four years to deepen defence and trade cooperation, including the establishment of a drone and unmanned combat aerial vehicle (UCAV) manufacturing and maintenance hub near Dhaka.
The initiative aims to serve growing Southeast Asian markets and boost Bangladesh’s defence exports while strengthening bilateral ties between the two Muslim-majority nations.
Turkish officials discussed the proposal during recent foreign secretary-level meetings and defence talks in Dhaka. It focuses on joint production of platforms such as Bayraktar TB2 and Akıncı drones, alongside broader military aircraft and air defence cooperation.
**Defence and industrial partnership**
The planned hub near Dhaka would facilitate technology transfer, local assembly, maintenance, and eventual exports to regional markets. Bangladesh has already acquired Turkish Bayraktar TB2 systems in previous deals, marking an expansion of defence ties that began intensifying after 2021.
Turkish defence exports reached record levels in recent years, with the industry generating over $7 billion in revenue in 2024. Armed drones contributed significantly to this growth.
The $2.5 billion commitment would span defence manufacturing, trade facilitation, and related infrastructure projects. It includes potential co-production capabilities that could position Bangladesh as a drone manufacturing base in South and Southeast Asia.
**Official engagements**
Discussions took place during Bangladesh-Türkiye foreign office consultations, the first in several years. Turkish defence industry representatives have engaged with Bangladeshi counterparts on technology transfer and skilled workforce development.
No final agreement has been signed yet, but both sides described the talks as promising and aligned with mutual strategic interests. Bangladesh seeks to modernise its armed forces with NATO-standard interoperability, while Türkiye expands its defence footprint in the region.
**Economic and trade dimensions**
Beyond defence, the investment package targets trade enhancement. Bangladesh’s garment and other export sectors could benefit from ancillary industrial growth linked to the defence hub. Turkish investment is expected to create jobs in high-tech manufacturing and support skills development in aerospace engineering.
Regional drone demand has grown steadily, driven by maritime security needs and border surveillance requirements across Southeast Asia. A Dhaka-based facility could reduce logistics costs and enable faster maintenance for operators in the area.
**Regional context**
Türkiye has successfully established joint drone production arrangements in other partner countries, including recent agreements in Central Asia for ANKA UAVs. The Bangladesh proposal follows a similar model of technology transfer and local capacity building.
Bangladesh has diversified its defence procurement in recent years, incorporating Turkish systems ranging from drones to artillery and naval equipment. This has elevated Türkiye as one of Dhaka’s key defence partners since 2021.
**Strategic implications**
The development reflects broader Turkish efforts to increase defence exports and establish production footholds in strategic regions. For Bangladesh, it offers an opportunity to build indigenous defence manufacturing capabilities and reduce reliance on traditional suppliers.
Analysts note that successful implementation could enhance Bangladesh’s export potential in the defence sector while contributing to its overall industrial base. The project aligns with Dhaka’s goals of military modernisation and economic diversification.
Future steps are expected to include detailed feasibility studies, finalisation of investment terms, and agreements on technology transfer protocols. Progress will likely feature in upcoming high-level bilateral engagements between Ankara and Dhaka.
The proposal underscores evolving defence and economic linkages in South Asia and beyond, with potential effects on regional security dynamics and supply chains.