Triple whammy for Bangladesh economy
Bangladesh faces mounting economic risks from the escalating Middle East conflict, with potential threats to remittance inflows, energy supplies and air travel already raising concern.
Disrupted flights between Bangladesh and Saudi Arabia have affected thousands of passengers, while job losses among expatriate workers could weaken a vital source of foreign exchange if the crisis persists.
The conflict has also heightened concerns over energy security, as around 63-65 per cent of Bangladesh’s crude oil imports come from Middle Eastern suppliers, primarily Saudi Arabia and the United Arab Emirates (UAE), with smaller quantities sourced from Iraq.
State Minister for Foreign Affairs Shama Obaed Islam said on Monday that State Minister for Power, Energy and Mineral Resources Aninda Islam Amit was in Saudi Arabia to discuss energy cooperation.
“Our Energy Ministry has been working under the leadership of the prime minister to find new sources of energy,” she said, adding that Bangladesh had so far received no indication of any significant disruption to its energy cooperation with Saudi Arabia.
“Up to now, we have not heard of any such problem.
We hope the preparations and planning undertaken by the Energy Ministry will not face difficulties,” she said, noting that any disruption to energy supplies would affect other countries as well.
The crisis is raising particular concern over the livelihoods of Bangladeshi migrant workers and the remittances they send home.
Saudi Arabia hosts around 3.5 million Bangladeshis and remains one of the country’s leading sources of remittance income.
Shama Obaed acknowledged that the conflict could affect remittance inflows, as some Bangladeshi workers had lost their jobs, others had returned home, and many remained in the region without employment.
“We are actually living in a global turmoil,” she said, warning that decisions taken in one part of the world could have far-reaching consequences elsewhere.
“Some of our workers have lost their jobs, and some have been forced to return home.
Others are staying in the Middle East with great difficulty but without jobs. This could have an impact on remittances,” she added.
Bangladesh Bank data show that the country received $9.88 billion in remittances between July and October 12 of fiscal year 2026-27, up 12.7 per cent from $8.77 billion in the corresponding period a year earlier. Saudi Arabia was the largest source country in September, contributing $503.77 million.
Although inflows remain strong, stakeholders warn that prolonged instability could cost workers their jobs and reduce household incomes, putting future remittance growth at risk.
Shamim Ahmed Chowdhury, former secretary-general of the Bangladesh Association of International Recruiting Agencies (BAIRA), said the crisis had further complicated an already difficult overseas employment situation.
“Saudi Arabia is a major market where more than 70 per cent of the total workers of Bangladesh go for work.
As the conflicts were going on for a long time, Bangladesh should have a preparation how to manage its manpower,” he told The New Nation.
Describing the situation as grave, he said Bangladesh had little control over the regional conflict but could take steps to protect its workers.
“First of all we have to ensure the safety of our workers working there. Secondly, those who have returned and are failing to go to Saudi Arabia, our government should pay attention so that their jobs are not lost,” he said.
He called for an immediate database of Bangladeshi workers in different sectors in Saudi Arabia, covering their employment and visa status.
He also urged the government to consult relevant stakeholders to develop a coordinated response.
“This is a combined effort, after all,” he said.
Aviation disruptions
The conflict has also disrupted air travel between Bangladesh and Saudi Arabia following attacks on King Khalid International Airport in Riyadh.
According to the Civil Aviation Authority of Bangladesh, security restrictions and the airport closure disrupted or cancelled 62 flights between the two countries-23 direct and 39 transit flights-affecting 9,674 passengers.
For migrant workers travelling to take up jobs, such disruptions can have serious consequences beyond inconvenience.
Delays may jeopardise employment contracts and visa validity, while workers risk losing money already spent on recruitment and travel.
Stakeholders have urged the government to maintain contact with expatriates, verify casualties, assist injured Bangladeshis, support stranded passengers and coordinate with Saudi authorities and employers.
They have also called for vigilance against recruitment agencies seeking to exploit the uncertainty through false promises or additional charges.
Energy security concerns
Energy dependence adds another layer of vulnerability. Any prolonged disruption to Middle Eastern oil supplies could put further pressure on Bangladesh’s energy security, making efforts to diversify supply sources increasingly important.
The government says it is exploring alternative sources and remains hopeful that existing cooperation with Saudi Arabia will continue without major difficulties.
However, the evolving conflict underscores the need for contingency planning across energy, aviation and overseas employment.
With millions of Bangladeshis working in the region, the stakes extend beyond immediate security concerns.
A prolonged crisis could turn flight disruptions into lost jobs, deepen pressure on migrant households and eventually weaken remittance inflows.
Protecting workers while safeguarding energy supplies and travel links will be critical to limiting the economic fallout.
