Remittances from Saudi Arabia Decline to $2.74B in FY24

Despite Bangladesh sending a record 5.26 lakh workers to Saudi Arabia in FY24, remittances from the Gulf nation have dropped to $2.74 billion, down from $5.72 billion in FY21. In contrast, the UAE, which hired fewer Bangladeshi workers, sent $4.64 billion in remittances in FY24.

Bangladesh received $2.18 billion in remittances in January 2025, marking the sixth consecutive month above $2 billion, a 3.4% year-on-year increase. However, growth slowed compared to December’s 33% surge due to Bangladesh Bank’s restrictions on high exchange rates.

Experts and stakeholders at a seminar proposed increasing the remittance incentive from 2.5% to 4% to encourage overseas workers to send money through legal channels. The seminar highlighted that last year, Bangladesh received $27 billion in remittances, with 25% of the workforce employed abroad.

In November, Bangladesh received $2,199.99 million in remittances, with $511.96 million coming from the US and $684.58 million sent to Dhaka. Chattogram and Sylhet divisions received $603.9 million and $199.6 million, respectively.

Expatriate Bangladeshis sent a record $26.9 billion in remittances in 2024, marking a 23% year-on-year increase, as policymakers sought to bolster strained dollar reserves. The sharp rise followed the fall of the Awami League government, with monthly inflows surpassing $2 billion since August.

Bangladesh received $26.67 billion in remittances from January to 28 December 2024, marking a 22% year-on-year growth. Key drivers include a 9% rise in the official dollar rate and reduced money laundering, with the demand for informal hundi transactions declining. All months except July exceeded $2 billion in remittance inflows, disrupted briefly by internet and banking issues during a mass uprising. The dollar rate climbed from Tk110 to Tk123, bolstering formal remittance channels.