Understand how the Commercial Court Ordinance 2026 is transforming commercial dispute resolution and strengthening the Foreign Direct Investment (FDI) landscape in Bangladesh.
Introduction: Commercial Courts and the Future of Investment in Bangladesh
Bangladesh has introduced the Commercial Court Ordinance 2026, a major reform aimed at modernizing the country’s commercial dispute resolution framework. This ordinance establishes specialized commercial courts dedicated to handling business and investment-related disputes efficiently and professionally.
For foreign investors and multinational corporations, this reform significantly improves confidence in Bangladesh’s legal system. The ordinance also supports the national #InvestBangladesh initiative, which focuses on enhancing the country’s attractiveness as a global investment destination. The #InvestBangladesh initiative is a comprehensive, government-led campaign managed by the Bangladesh Investment Development Authority (BIDA) to attract, facilitate, and accelerate both foreign direct investment (FDI) and domestic investment.
Why the Commercial Court Ordinance 2026 is Important for FDI?
One of the biggest concerns for foreign investors is the speed, transparency, and predictability of dispute resolution. The new ordinance directly addresses these challenges by:
- Minimizing litigation delays
- Introducing judges specialized in commercial law
- Improving enforcement reliability for contracts and agreements
These improvements increase investor trust, enhance Bangladesh’s global competitiveness, and align the country with international commercial justice standards.
Major Features of the Commercial Court Ordinance 2026
I. Specialized Commercial Courts for Business and Investment Disputes
The ordinance establishes courts dedicated exclusively to commercial matters, including:
- Investment and project agreements
- Joint venture and shareholder disputes
- Banking and financial disputes
- Trade and corporate conflicts
This specialization allows judges to develop deeper commercial law expertise, leading to faster, more accurate judicial decisions.
II. Faster Resolution of Commercial and FDI Disputes
The ordinance introduces:
- Structured procedural timelines
- Strong case management systems
- Restrictions on unnecessary adjournments
These measures reduce financial exposure and operational uncertainty for investors by ensuring quicker dispute resolution.
III. Stronger Investor Protection and Legal Certainty
With clear legal procedures and dedicated courts, businesses benefit from greater legal clarity. Investors gain a dependable system for enforcing contracts – a critical factor in foreign investment decision-making.
IV. Digital Infrastructure and Technology-Driven Commercial Courts
The ordinance mandates the Government or relevant authority to provide adequate infrastructure to ensure commercial courts operate efficiently and are fully technology-enabled. It allows commercial court hearings to be conducted virtually under the Use of Information Technology by the Court Act, 2020 (Act No. 11 of 2020) enabling remote participation of parties and lawyers. Additionally, core judicial processes including e-filing of cases, digital summons issuance, online document submission, and electronic publication of judgments – may be conducted through information technology, subject to government infrastructure readiness and Supreme Court practice directions.
Impact on Foreign Direct Investment (#FDI, #InvestBangladesh)
The Commercial Court Ordinance 2026 plays a key role in Bangladesh’s post-LDC transition strategy by strengthening the country’s investment environment. The ordinance:
- Demonstrates government commitment to investor protection
- Improves legal infrastructure for business operations
- Encourages multinational corporations and joint ventures to expand in Bangladesh
Overall, the reform is expected to drive long-term economic growth and boost investor confidence under #InvestBangladesh.
Practical Action Plan for Foreign Investors
Foreign investors operating or planning to invest in Bangladesh should:
- Review existing contracts and update dispute resolution clauses
- Evaluate litigation exposure under the new commercial court system
- Seek guidance from experienced commercial and FDI legal advisors
- Align business strategies with updated regulatory and legal frameworks
Strategic legal planning will help investors fully benefit from this reform.
Frequently Asked Questions (FAQ) – Commercial Court Ordinance 2026
What is the Commercial Court Ordinance 2026?
How does it benefit foreign investors?
Are commercial disputes now handled separately from civil courts?
What disputes fall under these courts?
Does this ordinance replace arbitration?
Do foreign companies have equal access?
Will cases be resolved faster?
What should investors do immediately?
How can Jural Acuity assist?
Conclusion: A New Era for Investment Protection in Bangladesh
The Commercial Court Ordinance 2026 represents a major step forward for Bangladesh’s investment and legal ecosystem. By introducing specialized courts, improving dispute resolution efficiency, expanding digital court systems, and strengthening legal certainty, the ordinance enhances the country’s FDI potential. With a more reliable, technology-driven, and investor-friendly legal structure, Bangladesh is positioning itself as an increasingly attractive destination for global investment and commercial expansion.