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Seminar on “Advancing Dispute Settlement and Contract Enforcement for Businesses”
A seminar on “Advancing Dispute Settlement and Contract Enforcement for Businesses” organized by Dhaka Chamber of Commerce & Industry (DCCI) was held on September 2, 2025 at DCCI Auditorium. Mahbubur Rahman, Secretary, Ministry of Commerce, GoB graced the seminar as the Chief Guest while H.E. Michael Miller, Ambassador & Head of Delegation of the European Union (EU) in Bangladesh and Md. Abdur Rahim Khan, Additional Secretary (Export Wing), Ministry of Commerce & Vice Chairman, Export Promotion Bureau (EPB) (Additional Charge) attended as the Special Guests.
In his welcome remarks, DCCI President Taskeen Ahmed stated that as economic activities in the country are growing significantly, disputes related to business contracts, investments, and intellectual property are also increasing. Currently, around 4 million cases remain unresolved in lower and higher courts of Bangladesh. He mentioned that prolonged judicial processes are hampering both local as well as foreign investment. Although, the Arbitration Act was in 2001, it has not been implemented effectively. He stressed the need for establishing a separate Commercial Court with the appointment of experienced judges and reforming the existing legal framework which will accelerate the pace of trade and investment.
Mahbubur Rahman, Secretary, Ministry of Commerce that as Bangladesh is one of the most densely populated countries, the number of cases in courts is increasing every day, making judicial delays intolerable. This situation is hampering both domestic and foreign investment as well as commercial activities. He pointed out that despite the introduction of the Arbitration Act in 2001, a business-friendly environment has not been fully ensured. He stressed that if trade-related disputes can be resolved outside traditional courts, it would reduce the overwhelming pressure on the judiciary substantially and improve the overall business climate. However, the general public of the country is still not very familiar with the concept of arbitration. Hence, he underscored the importance of raising awareness and promoting arbitration countrywide. He also informed that the process of establishing a Commercial Court is ongoing, and he hoped that the draft will be finalized within a month.
Michael Miller, Ambassador and Head of Delegation, the European Union in Bangladesh said that in order to reform the legal process, the EU has been working closely with the government. He expressed that the reform of the legal system will significantly improve the public’s quality of life. He noted that as Bangladesh moves toward LDC graduation and pursues export diversification, the formation of Commercial Courts will be crucial to attract foreign investment. Such courts will facilitate both domestic and foreign investment expansion. He hoped that the government would prioritize this issue for the greater interest of the economy. He further stated that strengthening arbitration mechanisms will help reduce the current investment stagnation. He also added that European companies are keen to invest in Bangladesh’s logistics and shipping sectors.
Md. Abdur Rahim Khan, Additional Secretary (Export Wing), Ministry of Commerce & Vice Chairman, Export Promotion Bureau (EPB) (Additional Charge) said that delays in resolving trade disputes not only hinder FDI attraction but also negatively impact export expansion. Besides, due to this Bangladesh is gradually losing its place in global trade. To overcome this, he proposed forming “legal institutions” outside traditional courts to resolve disputes through negotiations in a comparatively shorter time.
Barrister Md. Sameer Sattar, former President, DCCI presented the keynote paper. In his presentation, he said that contract enforcement is a crucial determinant for both local and foreign investors, but Bangladesh is lagging far behind in this regard. He mentioned that Bangladesh ranked 189th out of 190 countries in contract enforcement as per the earlier World Bank’s Doing Business Report. The position remains largely unchanged as the World Bank’s Business Ready (B-READY) 2024 report says Bangladesh scores 44.4 out of 100 in the area of dispute resolution, which is alarming. He highlighted that as of March 2025, nearly 25,000 cases are pending in financial loan courts, clearly reflecting the lengthy legal processes. He strongly urged prioritizing the necessary amendment of the Arbitration Act 2001.
Md. Ariful Haque, Director General, Bangladesh Investment Development Authority (BIDA) stressed that enacting laws alone is not sufficient to change the existing system rather institutional reforms are also crucial.
K A M Majedur Rahman, CEO of Bangladesh International Arbitration Centre (BIAC) said that delays in trade dispute resolution have become a matter of serious concern.
Vikna Rajah, Co-Head, South Asia Desk, Rajah and Tann, Singapore highlighted that due to strong legal structures, skilled human resources, strict law enforcement, and robust commercial dispute settlement mechanisms, Singapore continues to attract high levels of foreign investment. He stressed the need for comprehensive legal reforms, establishment of specialized commercial courts, and revision of the Arbitration Act in Bangladesh to attract more foreign investment.
Judge Tareque Muajjem Hussain, Special Officer (Additional District Judge), Special Officer to the Chief Justice of Bangladesh (Additional District Judge), stressed the need of appointing experienced judges specialized in commercial disputes along with proper training which will ensure smooth and faster dispute resolution.
In the open floor discussion, Rizwan Rahman, former President, DCCI said that lack of inter-ministerial coordination is one of the major barriers resolving trade disputes. He expressed concern that if this situation does not change both domestic and foreign investment will remain stagnant. He urged for reliance on arbitration centers rather than traditional courts to resolve commercial disputes.
DCCI Vice President Md. Salem Sulaiman, members of the Board of Directors, and stakeholders from relevant sectors were also present at the event.
Published on: 2025-09-02