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Bangladesh Cybersecurity Opportunities

Bangladesh is experiencing a rapid evolution in its cybersecurity landscape, driven by increasing digitalization and a surge in cyber threats. By one estimate, the country recently experienced over 63 million cyber attacks in a single year, highlighting the pressing need for robust cybersecurity measures across various sectors, particularly in but not limited to finance, healthcare, and telecommunications. The local cybersecurity landscape has been generally supported by both governmental initiatives and a growing number of specialized local cybersecurity firms. However, significant gaps in the regulatory environment and the cybersecurity capabilities of government agencies and private sector firms remain.

It should be noted that Bangladesh has recently gone through an historic leadership change with the last Prime Minister of 16 years resigning. All former ministers have resigned or been removed from their positions and the current Interim Government Administration, led by Bangladeshi Nobel Laureate Dr. Mohammed Yunus, was selected by student protest groups that helped overthrow the past government and is backed by the Bangladesh military. His administration has signaled an interest to combat corruption especially through the digitization of government services, as well as reform many industry sectors including the ICT sector .

Bangladeshi businesses have increasingly digitized over the last several years and this has led to a commensurate demand in cybersecurity services. However, Bangladesh faces several challenges in scaling up its cybersecurity capabilities, including limited awareness and capacity building, inadequate infrastructure and resources, and a shortage of skilled professionals. The country also lacks a comprehensive cybersecurity framework, with inconsistencies in policy implementation and a lack of coordination among stakeholders. Two recent cybersecurity breaches that speak to the need for more cybersecurity services and the potential for U.S. companies to provide expertise and solutions to mitigate these risks include a 2016 Bangladesh National Bank cyber heist of over $80 million and a relatively high profile 2023 email server compromise of Biman Bangladesh Airlines.

In August 2023, the then-government passed a Cybersecurity Act (CSA) that was partially designed to enhance Bangladesh’s cybersecurity measures, but which faced criticism for its potential impact on online freedom and a lack of consultation with stakeholders in the drafting stage of the legislation that led to it being incompatible with international norms. The CSA’s approach to blending cybercrime and cybersecurity legislation introduced potential legal ambiguities and complicated enforcement, highlighting its lack of separated legal frameworks to address the unique aspects of cybersecurity management and cybercrime prosecution. For U.S. companies, the CSA’s provisions presented challenges, in some cases exposing U.S. firms conducting legitimate cybersecurity work or research in Bangladesh to criminal penalties. The new Interim Government appears to recognize the numerous flaws in the CSA, and it is expected that a revised piece of legislation which is more compatible with international norms will be developed over the coming months.

Opportunities for U.S. Companies

Despite historical challenges in Bangladesh in developing the cybersecurity sector, the continued urgent demand for increased cybersecurity protections in the public sector and in several key industries means there are significant opportunities for U.S. companies in the Bangladeshi cybersecurity market. U.S. companies can provide training programs and certifications in cybersecurity, helping to bridge the skills gap in Bangladesh. Additionally, U.S. firms specializing in cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and blockchain may find their services in demand by Bangladeshi businesses.

Regulatory compliance services will be a growing area of opportunity, as the new interim Bangladesh government strengthens its regulatory framework around cybersecurity. U.S. companies can offer consultancy services to help local businesses comply with regulations both domestically and internationally, including risk assessments, compliance audits, and tailored security solutions that align with international standards. In particular, firms offering solutions for the banking and financial sector in Bangladesh should find opportunities in the market as it is the industry most in need of enhanced cybersecurity services having witnessed several high-profile cyber attacks in recent years.

Bangladesh is a price-conscious market, but the Bangladesh government and local firms have historically demonstrated a willingness to pay more for quality products and services where it matters. In general, U.S. firms are well regarded by local firms and enjoy a high level of trust in the market as providing good quality service for a good value, especially for critical industry sectors such as cybersecurity. In addition, U.S. firms interested in entering the market will find local firms very eager to partner with them and the recently opened Commercial Service office at the U.S. Embassy in Dhaka is ready to help new market entrants find local partners.

Connect with your local U.S. Export Assistance Center in the United States to schedule an appointment for a consultation.

For more information visit the U.S. Commercial Service in Bangladesh.

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