Worker outflow to Saudi Arabia climbs but remittance falls

The movement of migrant laborers from Bangladesh to Saudi Arabia has experienced an astonishing fourfold increase over the past three years. However, despite this surge in migration, the earnings through remittances from these workers have consistently dwindled, as revealed by official statistics.

To delve into the numbers, in 2020, a total of 161,726 Bangladeshis secured employment opportunities in the Gulf region. This figure substantially escalated to 457,227 in 2021 and further soared to 612,418 in 2022, as meticulously documented by the Bureau of Manpower, Employment, and Training (BMET).

Contrastingly, the remittance revenues emanating from Saudi Arabia, where a significant chunk of these migrant workers are employed, amounted to $5.7 billion during the 2020-21 timeframe. This financial influx subsequently contracted to $4.5 billion in the subsequent fiscal year, 2021-22, and experienced a further decline to $3.7 billion in 2022-23, according to meticulous data sourced from the Bangladesh Bank.

Remarkably, the utilization of the illicit cross-border money transfer system known as "Hundi" has surged significantly of late, largely due to its demand-driven nature.

Drawing attention to the situation, Khan, a distinguished senior research fellow at the Center for Policy Dialogue, highlighted that a notable portion of those venturing abroad did so without a clear understanding of the nature of the jobs awaiting them. This lack of information has resulted in instances of unemployment and deception, subsequently dampening the anticipated volume of remittances.

Given that a substantial proportion of individuals from Bangladesh pursue employment in low-wage positions overseas, the individual inflow of remittances is comparatively lower in Bangladesh compared to countries such as India and the Philippines. Khan further emphasized this point.

During the fiscal year FY23, the second-largest sum of remittances emanated from the United States, totaling $3.5 billion. Regrettably, specific figures regarding the number of Bangladeshis securing employment in the world's largest economy remain undisclosed.

In 2022, a total of 101,775 individuals found overseas employment in the United Arab Emirates, contributing a remittance sum of $3.03 billion in FY22.

The global economic uncertainty and heightened inflationary pressures have adversely affected the real earnings of migrants and subsequently impacted the volume of remittances, as indicated in the Bangladesh Bank's quarterly report on remittance inflows. During the April-June quarter of FY23, remittance receipts reached $5.5 billion, representing a marginal increase of 0.61 percent compared to the previous quarter.

Remarkably, during the closing quarter of FY23, the largest volume of remittances was traced back to Saudi Arabia, amounting to $1 billion. The United Arab Emirates contributed $829.41 million, while the United States and the United Kingdom added $720.81 million and $615.30 million, respectively.

The final quarter of FY23 saw a migration of 294,000 workers, which encompassed 17,417 females. Among these, a notable proportion, accounting for 35.16 percent, journeyed to Saudi Arabia in search of employment opportunities. Furthermore, Malaysia attracted 32.32 percent of these workers, followed by Oman at 10.29 percent, the UAE at 5.88 percent, Singapore at 4.65 percent, Kuwait at 2.79 percent, and Qatar at 2.68 percent, as per the comprehensive report from the Bangladesh Bank.