Special Correspondent, Dhaka:
Escalating conflict in the Middle East is threatening to deliver another blow to Bangladesh’s already strained economy, raising concerns over remittance earnings, overseas employment, energy supplies, and the welfare of millions of migrant workers.
Houthi missile attacks on Saudi Arabia, one of Bangladesh’s most important economic partners, have heightened the risks for an economy heavily dependent on overseas workers’ earnings and imported fuel. The potential fallout comes as the US-Israel war on Iran has already intensified regional instability and added uncertainty to energy markets.
Saudi Arabia is Bangladesh’s largest source of remittances, hosting approximately 3.5 million Bangladeshi nationals. According to Bangladesh Bank data, the kingdom accounted for $1.95 billion, or 19.2 percent, of total remittance inflows during the first three months of the current fiscal year. In the previous fiscal year, remittances from Saudi Arabia reached about $5.85 billion, representing 16.4 percent of the national total.
The kingdom is also Bangladesh’s largest overseas employment destination. Data from the Bureau of Manpower, Employment and Training show that 32,915 Bangladeshi workers received migration clearances for Saudi Arabia in September. A prolonged conflict could disrupt recruitment, weaken employment prospects and increase the risk of workers returning home.
Experts warned that sustained instability could reduce job opportunities and eventually force migrant workers to return to Bangladesh, adding pressure to the domestic labor market.
Energy security presents another concern. Saudi Arabia supplies roughly 35 percent of Bangladesh’s crude oil imports, leaving the country exposed to potential disruptions in regional production, transportation, or supply chains. Any sustained rise in oil prices could increase import costs and complicate efforts to manage inflation and external-sector pressures.
The immediate impact is already visible in aviation disruptions. Restrictions at Riyadh’s King Khalid International Airport and reduced operations at Dammam’s King Fahd International Airport affected 82 flights and at least 13,071 passengers, according to Bangladesh’s Civil Aviation Authority. Such disruptions can expose migrant workers to additional travel expenses, visa complications, and employment risks.
The conflict has also taken a human toll. Two Bangladeshis were killed and 27 injured in a missile strike on Riyadh airport, according to information provided by Bangladeshi authorities.
Foreign Affairs State Minister Shama Obaed Islam said the government was exploring alternative overseas employment markets and opportunities for returning workers. Former ambassador M Humayun Kabir urged balanced diplomatic engagement to protect Bangladesh’s national interests.
For Bangladesh, the widening crisis represents more than a security concern. A prolonged conflict could simultaneously weaken remittance growth, disrupt labor mobility, and increase energy costs, placing additional pressure on an economy with limited room to absorb external shocks.
