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Abstract
This article provides a focused analysis of the economic relations between Bangladesh and the Gulf Cooperation Council (GCC) countries, concentrating on the three key pillars of remittances, overseas employment, and trade. It highlights the paramount importance of this relationship for the Bangladeshi economy. The study provides a detailed analysis of the scale and significance of overseas employment in the Gulf, which hosts the vast majority of Bangladeshi migrant workers. It then examines the crucial role of the remittances sent home by these workers, identifying them as the single largest source of foreign currency earnings for Bangladesh. The research also assesses the bilateral trade relationship, noting that while it is significant, it is largely one-sided, dominated by Bangladesh's imports of oil from the Gulf. The paper explores the potential for expanding and diversifying this economic partnership, particularly in the areas of trade and investment. The analysis concludes that managing and strengthening this vital economic relationship is a top foreign policy priority for Bangladesh.
Full Text
The economic relationship with the Gulf countries is of fundamental and strategic importance to Bangladesh. This paper provides a detailed analysis of this relationship, with a specific focus on its three main components. The first and most critical component is overseas employment. The paper provides data on the vast number of Bangladeshi workers in the GCC states and analyzes the dynamics of this labor migration, including the challenges of worker protection and welfare. The second component is remittances. The study underscores the vital macroeconomic role of the billions of dollars that are sent home by these workers, which are essential for financing the country's trade deficit and for supporting the livelihoods of millions of families. The paper frames remittances as the most important and positive outcome of the bilateral relationship. The third component is trade. The analysis here reveals a more imbalanced picture. It details Bangladesh's heavy dependence on the import of petroleum products from the Gulf, and the very limited nature of its exports to the region. The paper then shifts to a forward-looking perspective, exploring the significant untapped potential for deepening the economic partnership. This includes a discussion of the potential to attract more investment from the wealthy Gulf states into Bangladesh and the need for a more concerted effort to promote Bangladeshi exports to the Gulf market. The paper concludes that while the relationship is currently dominated by the export of labor, a key challenge for the future is to build a more balanced and diversified economic partnership.