UK overtakes Saudi Arabia to become Bangladesh’s top remittance source

Economist Prof Mustafizur says the sudden surge from the UK raises questions that warrant closer scrutiny by the central bank

The United Kingdom overtook Saudi Arabia to become Bangladesh’s largest source of remittances in May, the first time it has topped the monthly rankings on record.

Bangladeshis living in the UK sent $643.57 million home in May, overtaking Saudi Arabia, which has traditionally been the largest remittance source.

The flow of remittances from the European country had been rising for several months before it climbed to the top spot.

Data released by Bangladesh Bank on Sunday showed expatriates sent a total of $3.43 billion in May, up 14.34 percent compared with the same month a year earlier.

The figure was the second-highest monthly remittance inflow on record, behind only $3.75 billion received in March this year.

Analysis of the central bank's data shows remittance inflows increased from nine of the top 10 source countries in May, with only the United States recording a decline.

Remittance inflows by country

Country	April	May
United Kingdom	$521.55 million	$643.57 million
Saudi Arabia	$525.93 million	$546.57 million
United Arab Emirates	$402.74 million	$468.16 million
Malaysia	$217.86 million	$300.02 million
United States	$320.14 million	$261.40 million
Oman	$157.46 million	$209.92 million
Italy	$175.92 million	$167.23 million
Kuwait	$139.26 million	$166.26 million
Singapore	$144.02 million	$141.06 million
Qatar	$136.32 million	$126.89 million
Total	$3.127 billion	$3.425 billion

Source: Bangladesh Bank

During the first 11 months of fiscal year 2025-26 (Jul-May), Saudi Arabia remained the largest source of remittances, contributing $5.28 billion, followed by the United Kingdom with $4.68 billion.

Remittances are currently one of the strongest pillars of Bangladesh's economy and have become a crucial source of support as the country navigates economic challenges.

However, the pattern of remittance sources has shifted significantly. In fiscal year 2024-25, the United States was the largest source country, but inflows from the country have since dropped sharply.

After leading remittance inflows in the previous two fiscal years alongside the UAE, the United States has now slipped to fifth place.

Saudi Arabia has reclaimed the top position, the UK has moved into second, the UAE remains third, while Malaysia has emerged as a surprise fourth-largest source.

Economists say the reasons behind these dramatic shifts remain unclear.

Prof Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), urged Bangladesh Bank to investigate the changing remittance patterns more closely.

“Bangladesh has received more than $3 billion in remittances for six consecutive months, which is very positive for the economy. But I have questions about the fluctuations in source countries. One country suddenly moves to the top and then drops sharply the following year. I do not understand why this is happening.”

“Saudi Arabia has the largest Bangladeshi expatriate population, so higher remittances from there are understandable. But I cannot find a convincing explanation for the sudden surge from the UK. That is why I would urge the central bank to examine the source countries carefully and identify the real reasons.”

He added that authorities should also investigate whether other factors are at play, including the possibility that laundered funds are returning to the country through remittance channels.