Inward remittance: UAE tops the list of source countries

Remittance inflows from the United Arab Emirates (UAE) to Bangladesh have been on the rise since 2023, making it top of the central bank's charts of source countries and also foreign-exchange reserves robust.

However, sector insiders and economists have had a mixed bag as they said the sudden rise in influx from the UAE is not normal when the maximum number of workers from Bangladesh is still unskilled enough for that Gulf country.

As Dubai has emerged as one of the key hubs for money laundering from Bangladesh, they suggest an investigation into this issue.

On the other hand, Bangladeshis staying in the UAE said expatriates are becoming enthusiastic about remitting their hard-earned money through formal/official channels, especially in the changing political situation here.

In the last two years, the number of mid-level businesses, run by Bangladeshis in the Arab country, has increased in sectors like marine and automobile workshops, and apparel units.

Job opportunities for skilled workers have also expanded following the development of these ventures there, thus subscribing to an increased remittance inflow, they observed.

Remittance inflow from the UAE has topped the list of the central bank's top 10 source countries since fiscal year (FY) 24. The highest remittance volume came from that destination in July and August too.

Bangladeshis sent home from the UAE $2.07 billion in FY22, $3.03 billion in FY23 and $4.63 billion in FY24, according to the Bangladesh Bank. They sent $670.4 million in the July-August period in FY25.

Mohammad Yasin Chowdhury, a Bangladeshi businessman in the UAE, told the FE that the number of mid-level Bangladeshi businessmen has increased in various sectors in the last two years.

Bangladeshi workers are being employed there with good salaries.

Bangladeshis from other Middle-Eastern countries like Saudi Arabia, Qatar and Bahrain are also moving to the UAE with more job prospects.

Mr Yasin, who has been in the Gulf country for 25 years, owns FMC Group of Companies. He said, "Skilled workers earn 3,000-4,000 dirhams (Tk 100,000-130,000) and the unskilled get 1,200-1,600 dirhams (Tk 40,000-50,000)."

Over the years, many workers have come to this Arab country from Bangladesh as visit visas were open, according to him. "Many expatriates have set up small apparel factories in Ajman city. They also manufacture clothes from Bangladesh and sell them in their showrooms."

Similarly, they have also sprung up businesses like marine and automobile workshops in different cities.

Mr Yasin said expats in the UAE have been encouraged to remit money through legal channels after the fall of the Awami League government.

Golam Kabir, senior vice-president of the NRB CIP Association, said the 57 convicted workers, liked to the anti-job quota movement in July, were released from jail at the initiative of the interim government.

It impacted positively on the expatriates in sending remittance through banking channels, he said, adding: "But issues like money laundering need to be looked into seriously."

According to the Bureau of Manpower Employment and Training (BMET), 29,202 workers found jobs in the UAE in 2021, 101,775 in 2022 and 98,422 in 2023.

Bangladesh has sent 45,798 workers there in the first eight months of this year.

Prof Dr Mustafizur Rahman, distinguished fellow of the Centre for Policy Dialogue (CPD), suggests that the central bank investigate why inward remittance from the UAE is increasing as it is 'abnormal'.

"Like many other Gulf countries, the UAE also receives mostly unskilled workers from Bangladesh. So, why have more remittances started coming from that country suddenly?"

"The central bank needs to investigate whether money launderers are taking this opportunity to whiten their black money by sending it back home," pondered Dr Mustafizur.

It is necessary to find out whether dishonest businessmen send their smuggled money to the country and launder it again. They can also reap the benefits of the incentive introduced for expatriates.

SAUDI'S RANK FALLS

Saudi Arabia was the top sender of remittance to Bangladesh as it takes in the largest number of workers from the South Asian country.

But remittance flows from the kingdom have declined over the years. Its position has fallen to third in the first two months of FY25.

The BB data shows Bangladeshis sent $670.4 million from the UAE, $532.4 million from the USA and $513.4 million from Saudi Arabia during the period in question.

They sent $4.54 billion from Saudi Arabia in FY22, $3.77 billion in FY23 and $2.74 billion in FY24.

Saudi Arabia is the largest market for Bangladeshi workers. Most remittances are thus expected from there, said Dr Mustafiz.

"It should be looked into why remittances from Saudi Arabia are declining. It's important to understand whether undocumented workers in Saudi Arabia are sending money home via the UAE."

Some 457,227 workers found jobs in Saudi Arabia in 2021, 612,418 in 2022 and 497,674 in 2023. This January-August period, 330,134 Bangladeshis have gone to the kingdom.

Marina Sultana, director of the Refugee and Migratory Movements Research Unit (RMMRU), says many of the workers in Saudi Arabia are not getting jobs.

Many cannot send money through banking channels due to their undocumented status. Hence, it is not reflected in foreign-exchange reserves.

"We did a study a year ago that showed 31 per cent of the workers were cheated after going abroad. At some point, a significant number of them returned home," she said.

In general, Saudi-bound workers are among the most commonly cheated workers, observed Ms Marina.

Recruiters need to confirm migrants' employment before sending them to Saudi Arabia but they don't. Rather, they think their work is finished once they send the workers abroad, she said.

"The government should act promptly to this end," asserted the RMMRU director.

When contacted, BB executive director Mezbaul Haque said various reasons could be behind this rise in remittance from the UAE. But they have had no analysis of this issue till now.

BMET figures show an estimated 4.0-million Bangladeshis have gone to Saudi Arabia and 2.0 million to the UAE since 2004.

Hard-earned income of migrants is one of the main sources of forex reserves as Bangladeshis sent $4.12 billion in July and August of FY25.

They remitted $23.91 billion in FY24, $21.61 billion in FY23, $21.03 billion in FY22, $24.77 billion in FY21 and $18.20 billion in FY20, according to the BB.

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