Labor Market in the Middle East: What Bangladesh Can Do for Durability and Expansion

 

The Middle East has long been a significant destination for migrant workers, particularly from South Asia.  Bangladesh, one of the largest labor-exporting countries in the region, has a substantial stake in the Middle East labor market. With over 15 million Bangladeshi workers employed abroad, the Middle East accounts for nearly 70% of these overseas employment opportunities. However, the labor market in the Middle East is evolving due to economic diversification, technological advancements, and shifting geopolitical dynamics. For Bangladesh to ensure durability and expansion in this market, it must adopt strategic measures to address challenges and leverage opportunities. So, this article explores how Bangladesh, through various initiatives and strategies, can ensure the durability and expansion of the ongoing demand of the labor market in the Middle East.

The Current State of the Middle Eastern Labor Market

The Middle Eastern labor market highly depends on foreign labor, especially in industries like construction, hospitality, healthcare, and domestic work. Saudi Arabia, the United Arab Emirates (UAE), Qatar, and Oman are among the top destinations for Bangladeshi workers; the Bangladesh Bureau of Manpower, Employment, and Training (BMET) reports that Saudi Arabia alone employs more than 2.2 million Bangladeshi workers, making it the region's largest employer of Bangladeshi labor.

However, there are notable shifts taking place in the Middle Eastern labor market. The economies of the region are diversifying and moving away from reliance on oil through programs like Saudi Arabia's Vision 2030 and the UAE’s Vision 2031. These initiatives focus on industries that need a higher trained workforce, like technology, tourism, renewable energy, and finance. Furthermore, the COVID-19 pandemic has driven up digitization and automation, which has decreased the need for low-skilled workers in traditional sectors.  

Obstructions for Bangladeshi workers

Remittances from the Middle East constitute a vital source of foreign exchange for Bangladesh, with an annual contribution of over $22 billion, which accounts for approximately 6% of the nation's GDP. Any labor market turmoil, like the workers' repatriation brought on by COVID-19, might have serious economic repercussions.

The majority of Bangladeshi laborers in the Middle East are employed in low-skilled jobs. As the region shifts to a knowledge-based economy, the need for qualified workers in IT, engineering, healthcare, and finance is increasing. Conversely, Bangladesh's labor force is largely unprepared for this shift, as only 20% of its migrant workers possess technical or vocational training, which represents a high skill mismatch.  

Another matter of concern is that many Bangladeshi workers face exploitative practices, including wage theft, long working hours, and inadequate living conditions. According to a 2022 report by Human Rights Watch, migrant workers in the Gulf countries often experience labor rights violations, with Bangladeshi workers being particularly vulnerable due to weak legal protections and enforcement. Apart from this, geopolitical and economic uncertainty is another issue for Bangladeshi laborers because the Middle East is a volatile region with ongoing conflicts, fluctuating oil prices, and changing immigration policies. For example, Saudi Arabia's Saudization policy aims to replace foreign workers with Saudi nationals in certain sectors, potentially reducing opportunities for Bangladeshi workers.

Initiatives and Strategies for Durability and Expansion

Bangladesh must adopt a multifaceted approach that addresses these challenges and aligns with the region's evolving economic landscape to ensure the durability and expansion of its labor market presence in the Middle East.

Bangladesh must invest in technical and vocational education and training (TVET) to equip its workforce by upskilling and reskilling with the skills demanded by the Middle Eastern market. The government, in collaboration with private sector stakeholders, should establish training centers that offer courses in IT, healthcare, engineering, and renewable energy. For example, the UAE's demand for skilled professionals in artificial intelligence and robotics presents an opportunity for Bangladesh to train workers in these emerging fields. Additionally, the government might collaborate with nations in the Middle East to create customized training initiatives. To improve the skills of migrant workers, for example, Saudi Arabia's Technical and Vocational Training Corporation (TVTC) has indicated interest in working with nations that export labor. To keep its workers competitive, Bangladesh should take advantage of these opportunities.

Corruption and exploitation are common problems in the hiring process for migrant labor. Many workers are indebted even before they start their careers because they pay middlemen excessive fees. Bangladesh needs to encourage moral behavior and impose stronger rules on employment agencies. To ensure openness and lessen the need for middlemen, the government can set up a centralized online hiring platform.

To protect the rights of its workers, Bangladesh must establish more robust bilateral agreements with Middle Eastern nations. Fair pay, respectable working conditions, and legal remedies in the event of abuse should all be covered by these agreements. To keep an eye on workers' well-being and quickly resolve grievances, the government should also deploy labor attachés in strategic locations. Bangladesh can also take a lesson from the Philippines, which has effectively put in place a thorough system for safeguarding foreign workers. Pre-departure orientation courses are required by the Philippines Overseas Employment Administration (POEA), which also guarantees open hiring procedures and offers strong consular assistance.
Moreover, to represent the interests of its employees, Bangladesh needs to improve its diplomatic relations with the Middle East. Issues like labor quotas, worker welfare, and visa restrictions can be discussed at high levels. One positive step is the recent agreement between Bangladesh and Qatar to improve working conditions and expedite the hiring process.

The drive for digitalization in the Middle East offers Bangladesh a chance to establish itself as a supplier of a tech-savvy workforce. The government should support its employees' acquisition of digital skills, especially in fields like cybersecurity, data analysis, and software development. This change can be facilitated by collaborations with IT firms and academic institutions. Furthermore, Bangladesh can lessen its need for conventional hiring methods by using digital platforms to link employees and employers directly. Bangladeshi workers can demonstrate their abilities and get higher-paying positions by using platforms like LinkedIn and specialist employment portals.

Even though the Middle East is still a crucial market, Bangladesh should look at prospects in other places to lessen its reliance on a particular geographic area. In industries like healthcare, construction, and information technology, countries in Southeast Asia, Europe, and North America are increasingly looking for experienced and semi-skilled people. Bangladesh can lessen the risks brought on by the geopolitical and economic unpredictability in the Middle East by diversifying its manpower export destinations.

The Middle Eastern labor market offers immense opportunities for Bangladesh, but these come with significant challenges. By taking some initiatives and tactics like these, Bangladesh can ensure the durability and expansion of its labor market presence in the region. The government, private sector, and civil society must work together to create a sustainable and inclusive framework for labor migration that benefits both workers and the economy. As the Middle East continues to evolve, Bangladesh must adapt strategically to secure its position as a key player in the global labor market.


Imran Hossain teaches Business Administration in Rabindra
Maitree University, Kushtia.