Remittance inflows to Bangladesh may slow as migration disruptions and economic uncertainty deepen in the Middle East amid the US-Israel war on Iran, according to a Bangladesh Bank quarterly report published on Monday.
The central bank warned that escalating tensions in the Gulf could affect overseas employment and remittance flows, as the region remains the primary destination for Bangladeshi migrant workers, the report said.
The conflict has already pushed up global prices of oil, liquefied natural gas, fertiliser, and sulphur. Iran’s control over the Strait of Hormuz, a key maritime chokepoint through which about one-fifth of global oil exports and nearly one-third of fertiliser shipments pass, has heightened supply risks and volatility in international commodity markets.
The crisis has also disrupted air travel, with more than 600 Middle East-bound flights from Bangladesh cancelled, affecting thousands of migrant workers and potentially delaying overseas employment and remittance transfers.
Bangladesh’s labour migration remains heavily concentrated in the Gulf. Since FY2014-15, around 8.6 million Bangladeshis have secured jobs abroad, with Saudi Arabia accounting for 48 per cent of total employment, according to the Bangladesh Economic Review 2025.
Middle Eastern countries, including Saudi Arabia, Oman, Qatar, the United Arab Emirates, and Kuwait, account for about 75 per cent of overseas employment for Bangladeshi workers.
The report said recent policy measures have supported higher remittance inflows, helping ease pressure on the external sector.
Saudi Arabia remained the largest source of remittances, contributing about 15 per cent of total inflows, followed by the United Arab Emirates with 13.54 per cent.
During October–December of FY26, a total of 293,474 Bangladeshi workers migrated abroad, including 18,225 women. Saudi Arabia accounted for 64 per cent of total migration, followed by Qatar with 9.21 per cent, Singapore with 6 per cent, and Kuwait with 3 per cent.
Bangladesh Bank said remittances continue to play a key role in supporting foreign exchange reserves, strengthening macroeconomic stability, easing external pressures, and enhancing economic resilience.
The report also said remittance contribution to gross domestic product has been rising, reaching its highest level in FY25.
As a result, the remittance-to-nominal GDP ratio was estimated at 7.66 per cent in the second quarter of FY26.
