Prolonged war can hit remittance hard

Workers can still use banking or informal channels to send money. The real issue is whether they will have enough income in hand.

Migration expert Asif Munier

The cancellation of 222 flights and suspension of six Middle Eastern routes over the past five days is likely to put a heavy burden on Bangladesh’s labour market and the economy.

The disruption began on February 28 after several Gulf countries closed their airspace due to the ongoing security situation following US and Israeli air strikes on Iran and Iran’s retaliatory attacks.

Authorities said 176 flights were cancelled at Hazrat Shahjalal International Airport in Dhaka and 46 at Shah Amanat International Airport in Chattogram. The affected destinations include Dammam, Doha, Dubai, Abu Dhabi, Sharjah, and Kuwait.

Even if each flight carried 250 passengers, more than 55,000 travellers had been directly affected. The actual number is likely higher. Thousands of migrant workers are now uncertain about when they will be able to return to their workplaces.

WORKERS IN FEAR

Bangladesh’s overseas labour market depends heavily on the Middle East. According to the Bureau of Manpower, Employment, and Training, over 1.13 million workers went abroad in 2025. Of them, 67 percent or 7,54,369 workers are in Saudi Arabia.

Qatar is the second largest destination, followed by Singapore, Kuwait, the Maldives, the United Arab Emirates, and Jordan.

Because of the war, many Gulf countries, including Qatar, Kuwait, and the UAE, have slowed or temporarily stopped certain activities. As a result, migrant workers are facing uncertainty.

A Bangladeshi worker in Kuwait said, “We are living in fear. Most companies have kept their work stopped. Many who went to Bangladesh on holiday are now unsure if they can return because of airspace closures.”

He added that he is worried that if the situation continues, he will not be able to send money home. “God knows what will happen to my family if the war lingers.”

Other affected countries’ migrants also shared similar concerns.

So far, one Bangladeshi has been killed in the UAE and another in Bahrain. Four Bangladeshis were injured in Kuwait and three in Bahrain.

REMITTANCE AT RISK

Remittances and garment exports are the two main pillars of Bangladesh’s economy. Even during global crises, remittances help maintain foreign currency reserves and support rural families.

In 2025, Bangladesh received $32.8 billion in remittances, the highest amount in a single year, according to Bangladesh Bank data.

However, migration expert Asif Munier warned that the conflict could hurt remittance inflows if it continues for a long time.

He told The Daily Star that Bangladesh’s remittance flow could slow down in the long run or even decline temporarily.

Munier explained that rising oil prices and disruptions to trade routes may increase living costs in Gulf countries. For this, migrant workers may have less money left to send home.

“Workers can still use banking or informal channels to send money. The real issue is whether they will have enough income in hand,” he said.

He added that workers in informal sectors such as small shops, daily labour, and temporary contracts will suffer the most. If businesses close for security reasons, they will lose income.

Munier stressed that clear communication and coordinated government action are important to prevent panic.

The crisis is also affecting thousands of workers who were scheduled to leave Bangladesh.

Shariful Hasan, associate director of BRAC’s Migration and Youth Programme, said the impact is “multi-dimensional and potentially severe.”

He said that outgoing workers invested Tk 3 to 4 lakh to secure overseas jobs. “Many of them are now stuck, and their visas are nearing expiry.”

Hasan warned that if they cannot travel soon, their job opportunities may become uncertain. Employers abroad may change their recruitment plans if the conflict continues.

He added that many Bangladeshis in the Middle East work in temporary or informal jobs. Because of instability, they may not be able to work regularly. If their income drops, remittances will drop.

“The impact begins with the individual worker, then affects the family, the district, and eventually the state,” Hasan said.

He added that at least 20 to 25 districts in Bangladesh depend heavily on remittance. If the crisis continues, these areas may face economic hardship.

Shariful warned that Bangladesh, as one of the world’s top remittance-receiving countries, could face pressure on foreign currency reserves. “If this situation prolongs, the effects will only deepen.”

Talking to this newspaper, Tipu Sultan, former joint secretary general of the Bangladesh Association of International Recruiting Agencies and president of Recruiting Agencies Oikya Parishad, said that due to the war in the Middle East, Bangladesh’s labour market is going through a serious challenge.

He added that if the conflict lingers, current workers may lose their jobs and opportunities for new workers will shrink. “Naturally, remittance inflow will suffer.”

Tipu suggested that the government should talk to Middle Eastern countries, including Saudi Arabia, to extend the duration of Iqama (work permit) and visas for the affected workers.

At an event held recently, PMs’ Foreign Affairs Adviser Humaiun Kobir said the government considers expatriates its top priority.

“In the current crisis, where there are ticket or visa complications, we will take initiatives.”

He assured that the government would take all necessary steps to ensure the safety and welfare of Bangladeshis in the affected countries.