Monday, 22 September, 2025
Bangladesh, heavily reliant on remittances from the Middle East, appears to be losing its footing in the region, raising concerns over declining inflows and mounting economic risks.
Following the fall of the Hasina government in 2024, remittance inflows initially surged to record highs. However, recent data indicate a gradual slowdown, particularly from key Gulf nations such as Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman, and Bahrain.
According to the latest figures from Bangladesh Bank, remittances stood at $2.42 billion in August, down from $2.47 billion in July and $2.82 billion in June. While year-on-year comparisons still show growth, the recent downward trend signals turbulence in Middle Eastern labour markets as a significant factor.
“Bangladesh’s labour market in the Middle East is tightening. These countries are increasingly recruiting skilled workers from India and Nepal. In addition, the fallout from the Iran-Israel conflict and the recent Israeli attacks in Qatar have had ripple effects,” said Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS). “All these regional instabilities are directly impacting Bangladesh’s economy.”
Saudi Arabia remains Bangladesh’s single largest source of remittances, hosting nearly three million Bangladeshis.
More than 628,000 workers migrated there in 2024 alone, according to the Bureau of Manpower, Employment, and Training (BMET). Yet, despite the sheer numbers, opportunities are shrinking, leaving many migrants struggling to survive and remit.
Every year, tens of thousands return from Saudi Arabia after failing to secure stable work. The Wage Earners’ Welfare Board reported over 50,000 workers were forced to return in 2024 through the “outpass” process, compared to 58,000 in 2023.
Many migrants spend large sums to secure jobs, only to face months or years without proper employment or residency permits (aqama).
Ebaydul Islam from Jhalakathi, who returned from Saudi Arabia last year, shared his ordeal, “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.”
Another returnee, Mirajul Hawlader, echoed similar frustrations, “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 declining remittance inflows from Saudi Arabia are evident in the latest Bangladesh Bank data. In May, funds from the kingdom stood at Tk 6,524 crore, falling to Tk 5,763 crore in June, Tk 5,200 crore in July, and dipping further to Tk 4,800 crore in August.
“Saudi Arabia is restructuring its labour market with new skill benchmarks. Workers who do not meet these requirements face difficulties obtaining jobs or residency permits. Bangladesh must prioritise skill development; continuing to send unskilled labourers will only inflict long-term damage,” said Marina Sultana, Director of the Refugee and Migratory Movements Research Unit (RMMRU).
The United Arab Emirates (UAE), another major remittance hub, is presenting an even greater challenge. Reports suggest the UAE could halt work visa issuance for Bangladeshis in 2026, while visa restrictions and complications have persisted since last year, including tighter rules on family and transfer visas. Remittances from the UAE fell sharply from Tk 6,201 crore in March 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 could trigger a severe collapse in inflows.
“We cannot afford delays. Dhaka must engage Abu Dhabi in ur
Oman, which imposed a ban on Bangladeshi workers in 2023, is showing a similar downward trend. Remittances briefly surged past Tk 2,000 crore in January this year but began declining in June, falling to around Tk 1,700 crore by August.
Experts warn that without urgent intervention, Bangladesh could face even deeper setbacks in Middle East remittance inflows.
“The government must act now to safeguard this vital market, even amid regional instability,” said Mahfuz Kabir.
Marina Sultana added, “Enhancing worker skills is essential. Authorities also need to investigate why so many returnees struggle to secure employment and implement programs to boost the productivity of those who remain abroad.”
gent diplomatic talks. Losing the UAE market would significantly weaken Bangladesh’s overall foothold in the Middle East,” Mahfuz Kabir, Research Director at BIISS, said.
Qatar has also experienced a downward trend in remittances, which fell from Tk 1,432 crore in June to Tk 1,288 crore in July and further to Tk 1,113 crore in August, adding to the region-wide challenges for Bangladesh’s overseas workforce.
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Bangladesh, heavily reliant on remittances from the Middle East, appears to be losing its footing in the region, raising concerns over declining inflows and mounting economic risks.
Following the fall of the Hasina government in 2024, remittance inflows initially surged to record highs. However, recent data indicate a gradual slowdown, particularly from key Gulf nations such as Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Oman, and Bahrain.
According to the latest figures from Bangladesh Bank, remittances stood at $2.42 billion in August, down from $2.47 billion in July and $2.82 billion in June. While year-on-year comparisons still show growth, the recent downward trend signals turbulence in Middle Eastern labour markets as a significant factor.
“Bangladesh’s labour market in the Middle East is tightening. These countries are increasingly recruiting skilled workers from India and Nepal. In addition, the fallout from the Iran-Israel conflict and the recent Israeli attacks in Qatar have had ripple effects,” said Mahfuz Kabir, Research Director at the Bangladesh Institute of International and Strategic Studies (BIISS). “All these regional instabilities are directly impacting Bangladesh’s economy.”
Saudi Arabia remains Bangladesh’s single largest source of remittances, hosting nearly three million Bangladeshis.
More than 628,000 workers migrated there in 2024 alone, according to the Bureau of Manpower, Employment, and Training (BMET). Yet, despite the sheer numbers, opportunities are shrinking, leaving many migrants struggling to survive and remit.
Every year, tens of thousands return from Saudi Arabia after failing to secure stable work. The Wage Earners’ Welfare Board reported over 50,000 workers were forced to return in 2024 through the “outpass” process, compared to 58,000 in 2023.
Many migrants spend large sums to secure jobs, only to face months or years without proper employment or residency permits (aqama).
Ebaydul Islam from Jhalakathi, who returned from Saudi Arabia last year, shared his ordeal, “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.”
Another returnee, Mirajul Hawlader, echoed similar frustrations, “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 declining remittance inflows from Saudi Arabia are evident in the latest Bangladesh Bank data. In May, funds from the kingdom stood at Tk 6,524 crore, falling to Tk 5,763 crore in June, Tk 5,200 crore in July, and dipping further to Tk 4,800 crore in August.
“Saudi Arabia is restructuring its labour market with new skill benchmarks. Workers who do not meet these requirements face difficulties obtaining jobs or residency permits. Bangladesh must prioritise skill development; continuing to send unskilled labourers will only inflict long-term damage,” said Marina Sultana, Director of the Refugee and Migratory Movements Research Unit (RMMRU).
The United Arab Emirates (UAE), another major remittance hub, is presenting an even greater challenge. Reports suggest the UAE could halt work visa issuance for Bangladeshis in 2026, while visa restrictions and complications have persisted since last year, including tighter rules on family and transfer visas. Remittances from the UAE fell sharply from Tk 6,201 crore in March 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 could trigger a severe collapse in inflows.
“We cannot afford delays. Dhaka must engage Abu Dhabi in ur
Oman, which imposed a ban on Bangladeshi workers in 2023, is showing a similar downward trend. Remittances briefly surged past Tk 2,000 crore in January this year but began declining in June, falling to around Tk 1,700 crore by August.
Experts warn that without urgent intervention, Bangladesh could face even deeper setbacks in Middle East remittance inflows.
“The government must act now to safeguard this vital market, even amid regional instability,” said Mahfuz Kabir.
Marina Sultana added, “Enhancing worker skills is essential. Authorities also need to investigate why so many returnees struggle to secure employment and implement programs to boost the productivity of those who remain abroad.”
gent diplomatic talks. Losing the UAE market would significantly weaken Bangladesh’s overall foothold in the Middle East,” Mahfuz Kabir, Research Director at BIISS, said.
Qatar has also experienced a downward trend in remittances, which fell from Tk 1,432 crore in June to Tk 1,288 crore in July and further to Tk 1,113 crore in August, adding to the region-wide challenges for Bangladesh’s overseas workforce.
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