KSA Lifts Ban: What Next?

By Dr Mahfuz Kabir
11 February 2015, 00:07 AM
UPDATED 4 March 2015, 22:56 PM
AFTER six 'long' years, manpower market in Saudi Arabia is going to reopen for Bangladesh. It is the biggest ray of hope in the diplomatic front in recent

AFTER six 'long' years, manpower market in Saudi Arabia is going to reopen for Bangladesh. It is the biggest ray of hope in the diplomatic front in recent times despite overshadowing darkness in the polity. Notwithstanding embargo since 2008, Saudi Arabia is the biggest destination of Bangladeshi manpower having about 29 per cent of 9.17 million overseas employment of Bangladeshi as of 1 February 2015 as per BMET database. It is also regarded as the most significant place for Bangladeshi skilled, semi-skilled and less skilled workers, and an important yardstick of the country's image as a labour- exorter.

For long Bangladesh has been pursuing manpower export as an alternative to accommodate its gigantic labour force in suitable domestic sectors. At the advent of the twenty-first century there have been significant changes in sectoral composition of the domestic economy that bears non-trivial ramifications for employment. Agriculture, which has long been providing the largest share of jobs for the entire labour force, has been releasing jobs fast in numbers. Industries, especially manufacturing, continued to perform impressively at a nearly double digit rate in the last three fiscal years.

Since manufacturing, especially small and medium enterprises (SMEs), is likely to determine jobs along with a vibrating service sector, growth of these two sectors is crucial and show positive direction. A majority of manufacturing is accounted for by RMG which is based on semi-skilled and unskilled labour, along with few others like electronics and electrical, leather, food processing, etc. However, they appear to be too feeble to absorb the ever-increasing unemployment and acute under-employment. Services are growing with many structural constraints, and therefore would not be that prospective for rapid job creation as an alternative of manpower export for international labour market.

Bangladesh is now enjoying the celebrated 'demographic dividend' as around one-third of its population is aged 18-40 years as per BBS data of Population and Housing Census 2011. A significant portion of this manpower, with training and skill-development, can be exported to promote external employment and earn foreign currency. Even though there is a debate on whether remittance is being channelled to productive sectors, this magnificent foreign exchange inflow (cumulative 135 billion US dollars since 1976) is contributing significantly to maintain a healthy reserve with a positive impact on balance of payment.

Reinvigorating the Saudi Arabian market was therefore a very high priority for Prime Minister Sheikh Hasina who paid a visit after resuming office and consulted with King Abdullah to relax the moratorium and resolve the issue of 'Akama.' This achievement, owing also to positive efforts by Saudi diplomats, provides fresh impetus to the dynamics of manpower export of the country.     

Middle East is not only the prime destination for Bangladeshi manpower but also hosts majority of the share of short to medium term workers. Continuing good relations with major destinations of Bangladeshi manpower like Saudi Arabia and brightening the country's image are vital for the country's economic diplomacy. Among others, engagement with various unlawful and deceptive activities worked strongly behind the sanction, thereby damaging our country's image as a notable source in the international manpower market. It also paved the way to gain competitive edge for India, Sri Lanka, Pakistan, Myanmar, Cambodia, Vietnam and even Nepal over Bangladesh in the Middle East market for quite some time.

Jobs in Saudi Arabia are mainly short-term with specific contracts with workers returning home after the contract period's expiry. Bangladeshi workers are employed in diverse sectors from less to skilled to professional workers. However, a hefty chunk of Bangladeshi workers is engaged in growing infrastructural development and economic diversification projects.

Since Bangladesh has got the lucrative Saudi market back with a significant reduction in the cost of migration, there is no way to let the opportunity down. Therefore, the government must effectively implement Overseas Employment and Expatriate Welfare Act 2013 to curb rampant unethical practices in the supply side and enhance service provision to workers by the Mission including regular counselling after migration. The Saudi economy is becoming well diversified with manufacturing and construction having gigantic shares in its GDP. Saudi Arabian General Investment Authority (SAGIA) reveals many investment opportunities in transport and logistics among hubs and cities. The country is also eyeing to invest nearly 100 billion dollars by 2022 encompassing rail, road, air and sea port, and supportive logistics with a massive expansion of its transport sector. It is also likely to invest another half a trillion dollars in power, telecommunications and IT, waste management, commercial and residential industries, education and health sectors by this time. Thus, the country is going to offer many opportunities for Bangladeshi workers in the foreseeable days. In addition to jobs in semi-skilled and skilled categories, Bangladesh would be able to send engineers, architects, surveyors, health professionals, accountants, auditors and IT professionals among others which would contribute to remittance.   

To best utilise the unfolding opportunities in Saudi market, both government and private sectors need to undertake rigorous pre-departure training and orientation regarding its law, culture, manner and etiquette, sanitation and hygiene, and Arabic and English for workers. Training should also cover overall and job-specific for semi and less skilled workers who are the overwhelming majority in proportion. Training, motivation and support must also be provided to migrants for networking and nurturing good practices.  

Migrant workers are real envoys of Bangladesh to the world. Backed by mindful and responsible hands of both public and private sectors, they are on a big mission of presenting their graceful root.

The writer is Senior Research Fellow, Bangladesh Institute of International and Strategic Studies (BIISS).