Bangladesh’s Remittances May Temporarily Decline Due to West Asian War
State Minister for Foreign Affairs Shama Obaed Islam warned that the ongoing West Asian war could temporarily affect Bangladesh’s remittance inflows as migrant workers lose jobs or return home. She also clarified that Bangladesh has not formally joined the proposed Makkah Pact and that troop deployment to Saudi Arabia is not under consideration at this stage, following the deadly Riyadh airport attack that killed two Bangladeshis.
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In a Nutshell
- State Minister for Foreign Affairs Shama Obaed Islam said the ongoing West Asian war could temporarily affect remittances as some Bangladeshi workers have lost their jobs, while others have returned home or are struggling to remain in the region without employment.
- More than 30 lakh Bangladeshis work in Saudi Arabia alone. Shama said the government is exploring new labour markets and employment opportunities for returning workers, with greater emphasis on technical education and skilled migration.
- Her remarks follow the October 10 strike on Riyadh’s King Khalid International Airport, which killed 12 people and injured 309, including two Bangladeshis. Shama previously said four more Bangladeshis were in intensive care and that 14 Bangladeshi nationals had died across the wider West Asia conflict.
- Shama said Bangladesh had not observed any disruption to its energy cooperation with West Asian countries. The government is exploring alternative energy sources and strengthening domestic energy self-sufficiency.
- She clarified that Bangladesh had not formally joined the proposed Makkah Pact and that there was no question of deploying troops to Saudi Arabia at this stage.
- The government has condemned the Riyadh airport attack, which Saudi and US officials attributed to Yemen’s Houthis.
Context
Shama made the remarks on October 12 after a seminar on Bangladesh’s foreign policy at the Bangladesh Institute of International and Strategic Studies in Dhaka. Bangladesh has expressed solidarity with Saudi Arabia following the Riyadh attack, but Shama’s clarification on the Makkah Pact and troop deployment draws a distinction between condemning the strike and committing military support. Bangladesh had previously expressed interest in joining the proposed pact, making the latest clarification notable, as it indicates that Bangladesh will not extend any technical support to Riyadh.
Why It Matters
Saudi Arabia has been a major destination for Bangladeshi workers, accounting for 48% of the 8.6 million Bangladeshis who found jobs abroad from 2014 to 2015, according to an earlier report. If the war continues to disrupt employment, Bangladesh could face a decline in remittances alongside growing pressure to find jobs for workers returning home. New labour markets may help over time, but they cannot immediately replace the scale of employment Saudi Arabia provides.
Bangladesh is also drawing a line between condemning attacks on Saudi Arabia and providing direct military support. By reiterating that it has not joined the Makkah Pact and that troop deployment is not under consideration, Dhaka is signalling that its support for Riyadh does not currently extend to military involvement in its conflict with the Houthis.
What We Think
Bangladesh is showing solidarity without committing resources to Saudi Arabia’s fight against the Houthis. This cautious approach allows the government to protect its own national interests, particularly the safety of millions of Bangladeshi workers in the Gulf, while avoiding a deeper military commitment.