It rings alarm that remittance inflows to Bangladesh from Middle East countries, particularly from Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Qatar and Oman, mark a gradual decline. A lion share of remittances come to Bangladesh from oil-rich ME countries, which plays a key role in keeping our national economy vibrant. So, the falling trend of remittance inflows has made us worried.
A news item headlined ‘Bangladesh losing grip on ME remittance lifeline’ published on the Sunday’s issue of the Bangladesh Post has led us to thinking about our country’s economy over declining remittance inflows.
After the fall of Sheikh Hasina-led Awami League government in 2024, remittance inflows to the country surged to record highs, but the recent trend shows a frustrating picture.
According to latest Bangladesh Bank data, remittances stood at $2.42 billion in August, down from $2.47 billion in July and $2.82 billion in June. Although year-on-year figures still reflect growth, the recent downward trajectory points to the turbulence in Middle East labour markets as a key driver.
“Bangladesh’s labour market in Middle East is tightening. These countries are increasingly hiring skilled workers from India and Nepal. On top of that aftermath of Iran-Israel war and the recent Israeli attack on Qatar have also had repercussions. All these regional instabilities are affecting Bangladesh’s economy, says Mahfuz Kabir, Research Director of Bangladesh Institute of International and Strategic Studies (BIISS).
Saudi Arabia is the single largest source of remittances, hosting around three million Bangladeshis. Over 628,000 workers migrated there alone, according to the Bureau of Manpower, Employment and Training (BMET). But job opportunities are shrinking in the kingdom nation, forcing many migrants to struggle for survival.
In May, Bangladesh received Tk 6,524 crore in remittances from Saudi Arabia, but witnessed a drop to Tk 5,763 crore in June and further down to Tk 4,800 crore in August.
“Saudi Arabia is restructuring its labour market with new skill benchmarks. Without meeting these requirements, workers face difficulties in securing jobs or residency permits. Bangladesh must prioritize skill development,” said Marina Sultana, Director of Refugee and Migratory Movements Research Unit.
Sources at the Wage Earners’ Welfare Board said thousands of Bangladeshi workers return from S Arabia every year after failing securing stable jobs there. Over 50,000 workers were forced to return in 2024 and 58,000 in 2023 from the country, the sources added.
The United Arab Emirates (UAE), another major remittance hub, is emerging as an even bigger challenge. The UAE could stop issuing work visas for Bangladeshis from 2026, according to reports.
In March this year, remittances from the UAE were Tk 6,,601 crore, but fell to Tk 4,540 crore in April, Tk 3,461 core in July and Tk 3,382 crore in August.
Remittance inflows from Qatar also show declining trend. Remittance dropped from Tk 1,432 crore in June to Tk 1,288 crore in July and further down to Tk 1,113 crore in August.
Experts warn that unless urgent steps are taken Bangladesh could face deeper setbacks in remittance inflows from the Middle East countries. “The government must act now to safeguard the labour markets even amid regional instability, BIISS Research Director Mahfuz said.
In view of the situation, we also hope that the government will put in all diplomatic efforts to normalise the ME labour markets in the greater interest of the country’s economy.
