Riyadh Attack Poses Economic Risks for Bangladesh

The deaths of at least two Bangladeshi nationals and injuries to 24 others in the missile attack by Iran-backed Houthi militants on King Khalid International Airport in Riyadh are not merely another tragic episode in the widening conflict in the Middle East. For Bangladesh, the attack also sounds an economic alarm, highlighting the vulnerability of its overseas labour market and remittance-dependent economy to growing regional instability.

The attack on 10 October killed at least 12 people and injured 309 others, according to Saudi authorities. Among the dead were two Bangladeshis, while 24 were injured. Of the injured Bangladeshis, 11 were migrant workers, and 13 were travelling on Umrah visas. Three were receiving treatment in intensive care, according to the Bangladesh Embassy in Riyadh. The immediate priority is, of course, the safety and treatment of the victims and support for their families. But the wider implications warrant serious attention, as the Kingdom of Saudi Arabia (KSA) has once again become Bangladesh's largest source of remittances.

According to Bangladesh Bank, Bangladeshi expatriates sent home $5.85 billion from KSA in FY2025-26, up from $4.26 billion in the previous fiscal year. KSA accounted for about 16.4 per cent of Bangladesh's total remittance earnings of $35.59 billion in FY2025-26. The trend has continued into the current fiscal year. In the first quarter of FY2026-27, Bangladesh received $8.59 billion in remittances, 13.3 per cent higher than the same period a year earlier. KSA alone contributed about $1.65 billion, accounting for roughly 19.2 per cent of the quarter's total remittance inflow. That was a 34 per cent increase from the corresponding period of FY2025-26. These figures explain why the security situation in Saudi matters far beyond the fate of individual flights. 

For decades, the kingdom has been one of the principal destinations for Bangladeshi migrant workers; it’s home to more than 35 lakh Bangladeshis, according to recent reporting based on official data. The relationship, therefore, has three interconnected dimensions: employment, remittances and foreign-exchange stability. Bangladesh's record $35.59 billion remittance inflow in FY2025-26 provided significant support to the country's external sector. KSA’s contribution alone was nearly $5.85 billion. A prolonged deterioration in security in the kingdom could potentially affect this flow through several channels: disruption to air travel, restrictions on movement, delays in recruitment, weaker demand for migrant labour and, in a more serious scenario, job losses or return migration.

It would be wrong to conclude that the Riyadh airport attack itself will cause remittances to collapse. Employment, wages, exchange rates, migration, household needs and the availability of formal transfer channels determine remittance flows. A temporary suspension of flights is unlikely to produce a comparable decline in annual remittances. The greater concern is what happens if instability becomes prolonged. The cancellation of flights following attacks on Riyadh airport is already affecting Bangladeshi travellers. More than 105 flights bound for Saudi Arabia from Dhaka have been cancelled, leaving over 15,000 passengers stranded on both direct and connecting routes. 

For migrant workers, aviation disruption can have consequences beyond inconvenience. New hires may face employment delays, which will worsen the burden of high upfront recruitment costs for families dependent on their income. Similarly, prolonged interruptions will threaten the employment of returning workers and risk permanent income loss. The government therefore needs a clear contingency mechanism for Bangladeshi workers caught in regional conflicts. Emergency assistance should not begin only after casualties occur.

The government should now reassess the country's migration strategy from a risk-management perspective. Market diversification is crucial; expand overseas employment beyond Saudi Arabia into high-demand regions like Europe and East Asia. Our nation should focus on upskilling and sending skilled workers abroad. The government should strengthen diplomatic support by updating worker databases, emergency communication systems, and evacuation plans. Recruitment agencies and employers should be required to provide workers with practical information about emergency procedures, insurance coverage and alternative travel arrangements. 

Bangladesh has benefited enormously from rising remittance inflows. The country's remittances increased from $30.33 billion in FY2024-25 to $35.59 billion in FY2025-26, a rise of 17.3 per cent. But a strong remittance figure should not create complacency. Remittances are the result of millions of Bangladeshis working abroad, often under difficult conditions and far from their families. Every dollar sent home represents the earnings of a worker who carries economic and personal risks overseas.

The two Bangladeshis killed in Riyadh were not statistics. One was a migrant worker returning to his workplace; the other was travelling for Umrah. Twenty-four more Bangladeshis were injured. Their families will now bear the human cost of a conflict thousands of kilometres from Bangladesh. The economic cost could become larger if instability continues. Bangladesh has built a substantial part of its foreign-exchange resilience on the sacrifices and earnings of migrant workers. It cannot afford to leave their safety, employment and economic contribution to chance.

The Riyadh airport attack should therefore prompt a broader national conversation: How can Bangladesh reduce its dependence on a handful of overseas labour markets while making its migrant workforce safer, more skilled and more resilient? The answer cannot be found in remittance statistics alone. It requires a comprehensive migration policy that treats migrant workers not merely as sources of foreign currency, but as one of Bangladesh's most valuable economic assets. The lesson from Riyadh is clear: when the security of a major labour market is threatened, Bangladesh's human security and economic security can be threatened at the same time.
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The writer is a Senior Sub-Editor at Daily Sun. He can be reached at [email protected]