Disparities in Remittance Flows from Expatriate Workers in Gulf Countries
Remittances sent by workers from Kuwait to Bangladesh declined in August, as inflows from several major Gulf markets showed mixed performance during the first two months of the current fiscal year 2026-2027, amid concerns that regional conflicts and the energy crisis could affect employment opportunities for expatriate workers if tensions persist.
According to The Daily Star, citing sources at Bangladesh Bank, six of the top ten countries sending remittances to Bangladesh recorded a decrease in remittance values in August compared to July. These countries included Kuwait, Qatar, Oman, the United Arab Emirates, Saudi Arabia, and the United States, while remittances from the United Kingdom, Malaysia, Italy, and Singapore increased.
Data showed that remittances from Kuwait to Bangladesh amounted to $148.74 million in July before dropping to $143.7 million in August, a decline of $5.04 million within a single month.
Other major markets also experienced varied declines, led by Saudi Arabia, the largest source of remittances to Bangladesh. Inflows from Saudi Arabia fell by $28.76 million, dropping from $587.29 million in July to $558.53 million in August. Remittances from Qatar decreased by approximately $8.5 million to $113.09 million, while those from Oman fell by about $8 million to $133.96 million. Remittances from the United States dropped by $6.77 million to $266.41 million, and inflows from the UAE decreased by $6.04 million to $249.52 million.
Conversely, some markets recorded significant growth in remittances. Inflows from the United Kingdom rose by $61.35 million, reaching $458.09 million in August, compared to $396.74 million in July.
Remittances from Malaysia increased by $27.38 million to $228.71 million, while those from Singapore rose by approximately $13.21 million to $150.19 million. Remittances from Italy also increased by $9.42 million to $212.53 million.
Despite the disparities among major markets, total expatriate remittance inflows to Bangladesh rose slightly, from approximately $2.86 billion in July to about $2.97 billion in August, remaining close to the $3 billion threshold.
The magazine quoted Arif Hossain Khan, spokesperson for Bangladesh Bank, stating that the ongoing conflicts and energy crisis in the Middle East region have exerted pressure on production sectors in the global economy.
He confirmed that these developments have not yet negatively impacted total remittance inflows to Bangladesh, but he pointed to continuing concerns about the potential impact on expatriate incomes if conflicts prolong. This could lead to a reduction in job opportunities for migrant workers and an increased risk of layoffs, forcing some workers to return to their home countries.
In this context, experts have recommended diversifying external labor markets and reducing heavy reliance on the Middle East by expanding into alternative markets, given the critical role of expatriate remittances as a primary source of foreign exchange and a key support for the Bangladeshi economy.
