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Nepal-United Arab Emirates Relations
Political
Diplomatic relations between Nepal and the 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 in major international issues. While Nepal has maintained the Royal Nepalese Embassy in Abu Dhabi since April 2004, the Embassy in New Delhi is accredited to Nepal.
Nepal looks forward for further strengthening its relations with the UAE. Nepal opened its Mission in view of the increasing importance of UAE in the region. Another important reason is a large community of Nepalese expatriates working in the Emirates.
Bilateral Visits
- His Majesty King Gyanendra and Her Majesty Queen Komal paid a friendly visit to the United Arab Emirates from June 18-22, 2005. Their Majesties' visit to the UAE has further consolidated the cordial and friendly relations between two countries.
- His Royal Highness Crown Prince Paras and Her Royal Highness Crown Princess Himani visited United Arab Emirates in April 2006.
- Hon. Ramesh Nath Panday, Minister for Foreign Affairs visited United Arab Emirates in March 2005.
- Then Minister for Information and Communication Dr. Mohmad Mohsin visited United Arab Emirates in 2004. The delegation included then Minister of State for Foreign Affairs Dr. Prakash Sharan Mahat and then Minister of State for Labour and Transport Management Mr. Urba Dutt Pant.
- Earlier Dr. Prakash Sharan Mahat, then Minister of State for Foreign Affairs visited United Arab Emirates in 2004 representing 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.
Royal 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 Qatar Airways and the Gulf Air are catering to the needs of the travelers. There are now 20 scheduled weekly flights from the UAE to Nepal.
Tourism can be one of the potential areas in the development of Nepal-UAE relations. Nepal can become a destination for the local population who visit abroad during the summer. There is a need for increasing direct flights to Nepal keeping in view the increasing traffic. Similarly, Nepal has tremendous scope for eco-tourism. Family tourism for a longer duration is another way to attract the Emirates because of its climate. Nepal took part in the ATM in May last year and Dubai Shopping Festival this year in 2005.
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. Nepal imported copper scraps, machinery, electronic goods, transport equipment, imitation jewellery, industrial raw materials and some quantity of fertilizer and exported garments, black cardamom and refined copper wire. According to the Trade Promotion Center, in 2003/04 Nepal exported items of Rs 81,296,812 and imported of Rs 407,933,164, the trade deficit stood at Rs 326,636,352 in favour of the UAE.
With the industrial development of especially in the Dubai Emirate, there is a scope for increase in the imports from the UAE. Similarly, Nepal is exploring market for export of organic vegetables. The Salt Trading Corporation has recently opened its branch office in Dubai to expand its vegetable market in UAE. The Federation of Nepal Chamber of Commerce and Industry is also active in promoting trade relations with UAE. As Nepal has become a member of WTO recently there are possibilities to broaden the scope of imports from this country.
Remittance from the workers in UAE, estimated to be over 90,000, 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.
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