From Gulf workplaces to village homes: How conflict could hit Bangladesh’s remittance economy

October 14, 2026
2 mins read
Bangladesh received $8.57 billion
Bangladesh received $8.57 billion, Source Internet

Remittances have so far held up. Bangladesh received $8.57 billion between July and September, up 13% from a year earlier. But growth in September alone was only 2.2%, a sharp slowdown from earlier months. Bangladesh Bank data show that the country received $35.34 billion in formal remittances in the last fiscal year.

Why The Gulf Matters So Much

Nearly half of Bangladesh’s remittances come from the Gulf Cooperation Council (GCC) countries, according to central bank data. Over three million Bangladeshis work in the region. Saudi Arabia, Oman, Qatar, the UAE and Kuwait together accounted for 86% of workers who found jobs abroad in FY25. When Gulf economies shrink, these workers are often the first to see wage cuts or job losses.

Fewer Workers Are Leaving

The war began on February 28, and the effect on migration was quick. Nearly 900 Middle East-bound flights were cancelled by mid-April. Emigration clearances fell from 95,095 in January to 44,661 in March. After a brief calm, renewed conflict in July revived fears about the labour market. Fewer departures today can mean lower remittances tomorrow.

Risks For Workers Themselves

Migrant workers are exposed in wartime. Some have reportedly been detained or sent home for sharing war videos or photos on social media. Analysts also warn that Gulf countries’ push towards automation may reduce demand for low-skilled workers over time.

From Dhaka To The Village

For families back home, remittances pay for food, school fees, loans and house repairs. A job loss in the Gulf can quickly become a missed meal or a delayed loan payment in a village. Economists have asked for a special fund to support workers who must return home.

What Could Help

Experts urge Bangladesh to diversify labour markets, train workers in higher-demand skills and keep up diplomatic talks with Gulf governments. Some say reconstruction after the war could create new demand for workers.

Remittances are a lifeline, and for now the lifeline is holding. How long it holds will depend on how long the conflict lasts.

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Payel

Payel

Payel is a journalist and writer with a deep commitment to storytelling. Passionate about nature, the environment, and the human stories intertwined with them, she aims to highlight issues that shape our world and inspire meaningful change.

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