Bangladesh is emerging as a promising destination for foreign direct investment (FDI) in the healthcare sector, offering lucrative opportunities for global investors. With 100% FDI allowance, foreign investors can fully own healthcare ventures and benefit from tax holidays if their hospitals meet modern infrastructure criteria. These incentives are part of the government’s strategic efforts to enhance the country’s healthcare system and reduce reliance on outbound medical tourism.
The sector has already attracted major international investments. STS Holdings Ltd, the owner of Evercare Hospital Dhaka (formerly Apollo Hospitals Dhaka), received a significant investment from the CDC Group (UK), demonstrating strong investor confidence in Bangladesh’s healthcare infrastructure This investment is a testament to the growing opportunities in the sector.
Market trends indicate robust growth potential. According to BIDA, the healthcare industry in Bangladesh was valued at $6.75 billion in 2019 and is projected to reach $15 billion by 2032, reflecting significant expansion and investor interest. This growth is driven by an increasing population, economic progress, and the rising demand for quality medical services. Additionally, 30 to 40 million people are expected to join the middle class by 2025, significantly boosting healthcare affordability and demand.
While opportunities abound, challenges such as low health insurance penetration also offer a chance for growth. Health insurance currently accounts for only 0.5% of GDP, leaving 6.3 million people without financial protection against healthcare costs. Expanding coverage presents a $1 billion market opportunity for insurers and healthcare providers, and ongoing government initiatives aim to broaden health insurance schemes to create a more investor-friendly regulatory environment.
Another challenge is the shortage of high-quality healthcare infrastructure in rural areas. While major cities like Dhaka, Chattogram, Narayanganj, and Gazipur house world-class hospitals, smaller towns and rural areas lack access to specialized services. The government and private sector are addressing this gap by offering tax breaks to healthcare facilities outside these cities, thereby encouraging investment in secondary and tertiary healthcare services.
Bangladesh offers a cost-effective healthcare ecosystem, where public hospitals provide subsidized care and private hospitals deliver premium-quality services at competitive prices. Moreover, the pharmaceutical sector supplies over 90% of the local drug market, positioning Bangladesh as a key player in generic drug manufacturing.
Quality accreditations further bolster the sector’s appeal. Evercare Hospital Dhaka and United Hospital Dhaka have earned Joint Commission International (JCI) accreditation—the gold standard in healthcare quality—which has significantly boosted investor confidence. Beyond JCI, several healthcare institutions are obtaining ISO certifications (such as ISO 9001 and ISO 13485) and are progressing toward accreditation by the emerging Bangladesh Accreditation Council (BAC). These quality endorsements ensure superior patient care and strengthen Bangladesh’s position as a regional healthcare hub.
Highlighting the potential for FDI, Mr. Shafiq Rahman, Director of Investment at the Ministry of Health, recently stated, “Foreign investment in healthcare is not merely an injection of capital—it is a catalyst for innovation and a driver of systemic reform that enhances quality and accessibility for all citizens”.
Rising per capita income in Bangladesh, which has grown at an estimated 7% annually over the past decade, is fueling a burgeoning health insurance market. This upward trend is gradually making health coverage more affordable, with minimum premium packages available for as low as BDT 65 per month (less than 1 USD). Bancassurance is emerging as a key distribution channel; leading the way are banks such as Dutch-Bangla Bank, Eastern Bank Limited, BRAC Bank, and Standard Chartered Bank.
Key Takeaway:
Bangladesh’s healthcare sector offers compelling opportunities for foreign investors. With a market valued at $6.75 billion in 2019 and projected to reach $15 billion by 2032, robust growth is driven by rising per capita income and an expanding middle class, expected to add 30–40 million new consumers by 2025. The government’s 100% FDI allowance, tax holidays for qualifying hospitals, and tax breaks for facilities outside major cities (Dhaka, Chattogram, Narayanganj, and Gazipur) create a supportive regulatory environment. Additionally, strategic investments such as the CDC Group’s backing of STS Holdings Ltd, along with robust quality accreditations (JCI, ISO certifications, and BAC accreditation), further enhance investor confidence. This unique blend of market growth, government support, and quality assurance positions Bangladesh as an exceptional destination for FDI in healthcare.
Bangladesh’s healthcare sector offers compelling opportunities for foreign investors. With a market valued at $6.75 billion in 2019 and projected to reach $15 billion by 2032, robust growth is driven by rising per capita income and an expanding middle class, expected to add 30–40 million new consumers by 2025.
Bangladesh’s healthcare sector presents a unique blend of high demand, government support, and increasing purchasing power, making it one of the most attractive investment destinations in South Asia. While challenges such as low health insurance penetration and infrastructure gaps exist, the government and private stakeholders are actively working to mitigate these issues. For investors seeking sustainable growth and impactful contributions, Bangladesh’s healthcare sector offers unparalleled opportunities.
