Saudi recruits highest from Bangladesh in 34 months

According to the Bureau of Manpower, Employment, and Training (BMET), 104,000 Bangladeshis secured overseas jobs in October, signaling a recovery after a four-month dip. The decline in recruitment since June had been linked to political unrest in Bangladesh and a temporary suspension of the Malaysian labor market. Additionally, in September, only 44,249 Bangladeshis were hired in Saudi Arabia, largely due to a 1.5-month hiatus in visa issuance caused by local political uncertainty.

However, the influx of Bangladeshi workers into Saudi Arabia comes with concerns. Labor migration experts have raised alarms over the growing problem of visa trading and escalating iqama fees, which have led to many workers returning home prematurely.

"Saudi Arabia's large-scale infrastructure projects have boosted demand for foreign labor, but visa trading is rampant, with fake demand letters being issued to push more workers than needed," explained Reaz-ul-Islam, former senior vice president of the Bangladesh Association of International Recruiting Agencies (Baira). "This leads to a mismatch between the number of workers sent and actual job availability."

Indeed, Saudi Arabia is seeing unprecedented construction growth, leading the world in construction activity with a $1.5 trillion pipeline of projects. According to JLL, the Kingdom accounts for 39% of the $3.9 trillion construction market in the Middle East and North Africa, with a substantial portion allocated to transportation, infrastructure, and utilities.

Despite the booming demand for labor, challenges persist. Saudi Arabia hosts around 3 million Bangladeshi workers, primarily in the construction and service sectors. However, high iqama fees—currently set at 11,000 Saudi riyals annually—have become a major burden, especially for employers who manage large teams of migrant workers.

Shamim Ahmed Chowdhury Noman, former Secretary General of Baira, highlighted that the escalating iqama fees contribute to a volatile labor market. "Although there's enough work available, the high cost of iqamas is creating instability. The issue must be addressed by reducing the fees to sustain the workforce," he said.

The rising iqama fees have caused many workers to face early returns. According to Brac Migration Program data, 70% of returnees come from Saudi Arabia, driven home by the soaring costs of work permits. With 350 to 400 Bangladeshi workers returning daily, the situation is unsustainable for many.

"Employers struggle with the burden of such large payments for large groups of workers, and the situation has worsened over the past 18 months," Noman Chowdhury added. A growing number of foreign workers, including Bangladeshis, are now working without valid iqamas, with 60-70% of them reportedly lacking the necessary permits.

To address these challenges, the Baira leader has appealed to renowned economist Professor Muhammad Yunus to use his international influence to urge Saudi authorities to reconsider the iqama fee structure.

In addition to Saudi Arabia, Qatar was the second-largest recruiter of Bangladeshi workers in October, hiring 6,507 migrants, followed by Singapore, Kuwait, and Jordan.

The steady growth in foreign employment has bolstered remittance inflows, which reached $2.39 billion in October, marking a 21.32% increase year-on-year from $1.97 billion in October 2023, according to Bangladesh Bank data. The growth in remittances reflects the ongoing resilience of the labor migration sector, despite challenges like fluctuating dollar exchange rates. Stakeholders attribute this to a growing sense of confidence in the government's economic management, especially as capital flight from Bangladesh decreases.