SABINCO (Saudi-Bangladesh Industrial and Agricultural Investment Company Ltd)  a private limited company established at Dhaka under the Companies Act 1913. It was formed in June 1984 at the joint initiative of the Ministers for Finance of Bangladesh and the Kingdom of Saudi Arabia in an effort towards strengthening economic co-operation between the two countries. The company started operations with an authorised capital of $60 million and a paid up capital of $48 million paid by the two governments in equal amounts. Later, the paid up capital was enhanced to $60 million on 31 December 2000. The company obtained license from the bangladesh bank on 7 February 1995 to operate as a Non-bank Financial Institution under the Financial Institutions Act 1993.

The management of the company is vested in a 6-member board of directors. The government of the Kingdom of Saudi Arabia nominates 3 members in the board, including the chairman, and the government of Bangladesh nominates the other 3 members including the deputy chairman.

Main objective of SABINCO is to assist the pace of economic development of Bangladesh through investment in trade-oriented and agri-based industrial enterprises. It also discharges activities related to marketing of the produces of those industries. The company provides industrial credit for BMRE of existing industrial units and for their mechanisation to enable them to compete with modern production process at lower operating and overhead costs.

Investment policies of SABINCO are framed in line with those of the government of Bangladesh formulated and promulgated from time to time under changed circumstances. The company prefers to finance import substitution and local raw material-based export-oriented industries. It provides medium and long-term loans both in local and foreign currencies to prospective industries and makes direct capital investments in companies through equity participation. It manages and underwrites public issue of shares and debentures of companies. It also arranges private placement of primary issue of shares and debentures of companies/corporate bodies. Other functions of the company include regular participation in stock market transactions, loan syndication and constitution of investment funds.

During the period between the inception of its operations in Bangladesh in 1984 and 31 March 2001, SABINCO provided financing support of Tk 3,473 million both in local and foreign currencies to 46 new industrial projects. 50% of the financial support went to industries of three sectors viz, textile (22%), chemical, medicine and other health related industries (17%), and fish and shrimp culture (11%). The remaining 50% was received by other types of industries the list of which includes glass and ceramic, cement, hides and skins, and products therefrom, engineering, food and beverage, toys, paper and other linkage industries. Credit financing by the company recorded a gradual growth over time. In 1994-95, the disbursement was Tk 1,336 million and the amount increased to Tk 2,424 million in 1999-2000. On 30 June 2000, total assets of SABINCO stood at Tk 4,039.07 million, which comprised term finance Tk 1,883.85 million, fixed assets Tk 38.28 million, current assets Tk 1,569.61 million, and other investments Tk 836.22 million. The liabilities were: share capital Tk 2,106.08 million, reserves Tk 1,790.12 million, and term loans Tk 142.85 million. Net profit of the company in 2000 was Tk 115.60 million. [S M Mahfuzur Rahman]