Political Relations

Diplomatic relations between Nepal and the United Arab Emirates (UAE) were established in January 1977. The two countries maintain friendly and cordial relations. As members of the UN and Non-aligned movement, both countries share common views on major international issues. Nepal looks forward to strengthening its relations with the UAE. Both countries have contributed to peacekeeping forces under the United Nations.

While Nepal has maintained its residential Embassy in Abu Dhabi since April 2004, the Embassy of UAE in New Delhi is accredited to Nepal. Nepal opened its Mission in view of the increasing importance of UAE in the region. Another important reason is the presence of a large community of Nepalese expatriates working in the Emirates.

Bilateral Visits
  1. The Prime Minister of Nepal Rt. Hon. Sushil Koirala and Minister for Foreign Affairs of Nepal Hon. Mahendra Bahadur Pandey visited UAE from 19-20 October 2014 (enroute of New Your following their participation in the 69th UNGA).
  2. The Honourable Deputy Prime Minister and Minister for Foreign Affairs Narayan Kaji Shrestha visited UAE from 3 - 4 October, 2012, (enroute to Nepal from New York, following his participation at the 67th UNGA).
  3. Minister for Labor Mr. Lekh Raj Bhatta visited UAE in 2009.
  4. Prime Minister Madhav Kumar Nepal paid a visit to the UAE in transit on his way to and back from Almaty (To participate in the international Conference of Asian Political parties in March 2009).
  5. Prime Minister Madhav Kumar Nepal paid a visit to the UAE in transit ( on his way to and back from Sao Paolo in July 2008)
  6. Then Crown Prince Paras and then Crown Princess Himani visited the United Arab Emirates in April 2006.
  7. Former Foreign Minister Mr. Ramesh Nath Pandey paid an official visit to the United Arab Emirates in April 2006. Earlier he visited UAE in March 2005. Then King Gyanendra and then Queen Komal paid a friendly visit to the United Arab Emirates from June 18-22, 2005.
  8. Then Minister for Information and Communication Dr. Mohmad Mohsin, Minister of State for Foreign Affairs Dr. Prakash Sharan Mahat and Minister for Labour and Transport Management Mr. UrbaDutt Pant visited UAE in 2004.
  9. Dr. Prakash Sharan Mahat, then Minister of State for Foreign Affairs visited United Arab Emirates in Nov. 2004 representing the Government of Nepal in the funeral of the Late President of the United Arab Emirates, His Highness Sheikh Zayed bin Sultan Al Nahyan, who died on November 2, 2004.
  10. Late Queen Aishwarya and late prince Nirajan paid an official visit to the UAE in 1995.

 

Visit From United Arab Emirates
  1. His Highness Sheikh Abdullah bin Zayed al Nahyan, Minister for Foreign Affairs of the United Arab Emirates, paid a one-day visit of Nepal on11 June 2009.
Economic Cooperation Trade

There are ample opportunities for economic cooperation between Nepal and UAE. Formation of bilateral agreements (Agreement on economic cooperation, Agreement on Protection and Promotion of Investment, Agreement on Avoidance of Double Taxation, Labour Agreement, Air service agreement etc.) can contribute to enhance economic cooperation between the two countries.

Aviation

Nepal Airlines started its flight to Dubai in 1985 in transit to its European destinations. It is one of the oldest foreign airlines operating in the region. At present, the Gulf Air and other airlines are catering to the needs of the travelers. There are now about 20 scheduled weekly flights from the UAE to Nepal.

Tourism

Tourism can be one of the potential areas in the development of Nepal-UAE relations. Nepal can become an attractive tourist destination for the people of UAE who go abroad during summer holidays. Similarly, Nepal has tremendous scope for eco-tourism. Nepal can offer attractive packages for the visitors from UAE

Investment and Trade

Nepal offers a very conducive and favorable environment for foreign investment with comparatively cheaper cost of production and low labour cost. As Nepal is located between the two big emerging economies, China and India, it could play an important role as a transit country, thereby making investment more attractive and profitable.  Considering that re-export trade forms a substantial one-third of the entire trading sector in the UAE, it can be quite useful for Nepal to share and learn from the experiences of the UAE. It is believed that re-export strength of the UAE lies in bulk purchases, low taxes, good infrastructure and an historical concentration of traders. Reduced delivery lead times are also a major reason for the success of the trade.

The initiative of the UAE for a zero carbon city is an opportunity for the two governments to work together in the sector of renewable energy. In this context, the Masdar city in the UAE could be a model city for many countries including Nepal.

Trade

Trade between the two countries is negligible and is in favour of the UAE.  There is a need for enhancing trade relations in the interest of both the countries. Major imports from UAE include edible oil, beverage, fuel oil, petroleum bitumen, polyethylene, and unwrought gold, among others, and export item cardamom (large), woolen shawls, scarves, mufflers, pachak and similar items.

With the industrial development of especially the Dubai Emirate, there is a scope for increase in the imports from the UAE although the ongoing global recession will adversely affect the trend of demand for some time. Similarly, Nepal is exploring market in the UAE for export of organic vegetables.  The Salt Trading Corporation has opened its branch office in Dubai to expand its vegetable market in UAE. The Federation of Nepalese Chamber of Commerce and Industry is also active in promoting trade relations with UAE.

Foreign Employment and Remittance 

UAE is still one of the attractive destinations for Nepalese migrant workers. The number of Nepalese nationals working in UAE is increasing day by day and according to a conservative estimate the current figure stands at more than 200,000. The goodwill and friendly behaviour towards Nepalese nationals in UAE has contributed to the flow of Nepalese nationals to work. The remittance received from Nepalese nationals working in UAE contributes substantially to the economy of Nepal. The new measures taken by the Nepal Rastra Bank to stop the illegal inflow of funds through Hawala/Hundi system has encouraged the Nepalese workers to remit their earnings through banks and legalized money exchange companies. There are ample opportunities to send skilled manpower as well to UAE.

- See more at: https://www.mofa.gov.np/foreign-policy/bilateral-relation/