Bangladesh Remittance Growth Under Threat as US and UAE Corridors Decline

Despite Bangladesh achieving a record surge in overall remittance inflows in Fiscal Year 2024-25 (FY25), reaching $30.33 billion (a 26.83% YoY increase), the two major remittance corridors—the United States (US) and the United Arab Emirates (UAE)—have shown concerning year-on-year (YoY) declines in the last two quarters of 2025.

US: Inflows dropped from $920.3 million to $626.45 million, a steep 31.96% decline. UAE: Inflows fell from over $1.03 billion to $884.37 million, a 14.15% decline. Emerging weaknesses were also noted in the previous quarter (Q4FY25), with the US declining by 21.8% YoY and the UAE by 22.15% YoY.

The overall FY25 growth was attributed to a competitive exchange rate and tighter surveillance on unofficial transfer channels. However, analysts point to several factors for the recent downturns, including uncertainty over proposed US remittance tax legislation and stricter regulatory oversight, a gradual decline in overseas employment in the UAE since 2023, rising living costs, and structural/behavioral shifts like the use of Fintech platforms and reduced spending by Non-Resident Bangladeshis (NRBs).