Dhaka

One of the region’s great megacities and a successful exporter, Dhaka also suffers from floods, water shortages, and extreme heat.

City Class Score

In the alleyways of Dhaka’s old city, a culinary adventure awaits. Here, street vendors provide local delights — think hilsa fish curry, fragrant biryani, and sizzling kebabs. Residents gather at roadside tea stalls, savoring sweet chai as they soak in the lively atmosphere. The scene reflects the city’s rich heritage, a delightful blend of cultures with roots dating back to the Mughal period. Nearby, the historic Lalbagh Fort, a stunning 17th-century Mughal structure, stands as a testament to this past. Yet amid this vibrant tapestry, vendors face the harsh realities of Dhaka’s climate challenges, grappling with extreme heat, floods, and water shortages.

Dhaka deservedly ranks higher than many peers on our list of Export Champions. The city has attracted some of the world’s biggest apparel and footwear brands, along with investments from China, South Korea, and Taiwanese suppliers. However, climate challenges pose a significant threat to the city’s industrial success. Nestled in a low-lying delta region, Dhaka is surrounded by major rivers — the Padma, Meghna, and Jamuna. Much of the land sits less than five meters above sea level, and relentless monsoon rains make it one of the most flood-prone of our 1,500 cities.

Nearly half of Dhaka is vulnerable to annual flooding, as the heavy rains often overwhelm clogged drainage systems. While the city has invested in flood prevention measures, including earthen embankments, these are not foolproof solutions in a world increasingly affected by extreme weather. Other cities on our list face similar river and coastal flood risks, but the speed at which Dhaka’s defenses become overwhelmed is especially challenging, and low-income groups that often live or work in flood-prone areas are disproportionately impacted.

Adding to the city’s woes, ironically, is a troubling water scarcity. With water bodies around Dhaka either polluted or built over, the city relies on groundwater for more than two-thirds of its water consumption. But overextraction has caused ground water levels to drop more than 20 meters over the past decade. This decline not only impacts households but also poses a critical challenge for the apparel manufacturing industry. Heat is yet another emerging risk, prompting Dhaka to appoint a chief heat risk officer in 2023 after the city recorded unprecedented temperatures exceeding 40 degrees Celsius. When combined with high humidity levels, it may pressure companies to provide measures such as shorter shifts or air-conditioning.