Staff Reporter :
Bangladesh, which relies heavily on remittances from the Middle East, is beginning to lose its grip on those markets, sparking fears of reduced inflows and heightened economic risks.
After the fall of the Hasina government in 2024, remittances initially surged to record highs. But recent data show a steady decline, particularly from Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain – countries that together account for the bulk of Bangladeshi migrant earnings. According to Bangladesh Bank figures, remittances stood at $2.42 billion in August, down from $2.47 billion in July and $2.82 billion in June. Though year-on-year numbers still reflect growth, the downward trajectory is raising alarm.
“Bangladesh’s labour market in the Middle East is tightening. These countries are increasingly recruiting skilled workers from India and Nepal. On top of that, the aftermath of the Iran-Israel war and the recent Israeli attacks in Qatar have also had repercussions.
All these regional instabilities are directly affecting Bangladesh’s economy,” said Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS). Saudi Arabia remains Bangladesh’s single largest source of remittances, hosting nearly three million workers.
Over 628,000 Bangladeshis migrated there in 2024, according to the Bureau of Manpower, Employment, and Training (BMET). Yet, despite the numbers, opportunities are shrinking. Thousands return home every year after failing to secure stable jobs, while many struggle with residency permits or aqamas. The Wage Earners’ Welfare Board reported over 50,000 forced returns in 2024 through the “outpass” process, compared to 58,000 in 2023.
Returnees describe grim realities. “I was promised an aqama within three months. Even after a year, it never came. The job I was promised never materialized either. I had to live like an undocumented worker, hiding every day,” said Ebaydul Islam from Jhalakathi, who returned from Saudi Arabia last year. Another worker, Mirajul Hawlader, added, “Getting an aqama for Bangladeshi workers is now like chasing a golden deer. If I can’t even send money home to my family, there’s no point in staying abroad.”
The decline is reflected in the data. Remittances from Saudi Arabia dropped from Tk 6,524 crore in May to Tk 5,763 crore in June, Tk 5,200 crore in July, and 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. Continuing to send unskilled labourers will only cause long-term damage,” said Marina Sultana, Director of the Refugee and Migratory Movements Research Unit (RMMRU).
The situation in the United Arab Emirates is even more precarious. Reports suggest Abu Dhabi could stop issuing work visas for Bangladeshis starting in 2026, while visa complications have already persisted since last year. Workers face restrictions on visa transfers and family visas. In March, remittances from the UAE were Tk 6,201 crore, but they dropped to Tk 4,540 crore in April, Tk 3,461 crore in July, and Tk 3,382 crore in August. Economists warn that a full visa suspension would sharply undermine Bangladesh’s overall inflows. “We cannot afford to delay. Dhaka must engage Abu Dhabi in urgent diplomatic dialogue. Losing the UAE market would severely weaken Bangladesh’s overall foothold in the Middle East,” said Mahfuz.
Other destinations also show slippage. Remittances from Qatar fell from Tk 1,432 crore in June to Tk 1,288 crore in July and Tk 1,113 crore in August. Oman, which banned Bangladeshi workers in 2023, saw remittances peak above Tk 2,000 crore in January before sliding to around Tk 1,700 crore by August.
Experts agree that without urgent policy responses, Bangladesh faces deeper setbacks. “The government must act now to safeguard the market, even amid regional instability,” Mahfuz observed. Marina Sultana echoed the concern, stressing, “Improving worker skills is non-negotiable. Authorities also need to investigate why so many returnees fail to secure jobs and design programs to enhance the productivity of those who remain abroad.”
The gradual erosion of remittance flows from the Middle East, once a pillar of Bangladesh’s foreign exchange reserves, has emerged as a pressing challenge for the interim administration as it navigates the country’s fragile economic transition.
