NEPAL – OMAN RELATIONS

Brief on Nepal - Oman Relations

Political Relations

Nepal and the Sultanate of Oman established their diplomatic relations on 21 January, 1977. The relations between the two countries have always remained cordial and friendly. Mutual trust, respect, understanding and cooperation form the strong basis of our bilateral relations.  Prior to the opening of residential Embassy in Muscat in 2013, the Embassy of Nepal in Riyadh was concurrently accredited to the Sultanate. The Embassy of Oman in New Delhi is concurrently accredited to Nepal.

(New Chancery of the Embassy of Nepal in Muscat was formally inaugurated by H. H. Mohammad Salim Ali Al-Said, Chief of Protocol Department on November 20, 2013 and started full-fledged functioning along with Consular services. The then Foreign Secretary of Nepal Mr. Arjun Bahadur Thapa later inaugurated the Embassy at its premises on December 25, 2013.)

There exist ample potentials for cooperation between the two countries in the areas of tourism, trade and investment, as well as in further expanding employment opportunities for Nepali nationals in Oman.

Nepal and the Sultanate of Oman share similar views on several issues of regional and global concern. Both the countries are the members of the United Nations, Non-Aligned Movement (NAM), G-77, Asia Cooperation Dialogue (ACD) and many other international forums. They have been working together and also playing an active role in these forums for the promotion of international peace and security, collective progress, prosperity and wellbeing of global citizens.

Exchange of Visits

Exchange of visits and interactions from time to time and at different levels between the leaders of both the countries have contributed to foster goodwill and understanding between Nepal and Oman. The visits have been great opportunities for productive engagement and have provided avenues to explore further cooperation between the two countries. Some major visits have been enlisted below:

• Hon’ble Foreign Minister Dr. Arzu Rana Deuba paid a visit to Oman to partake in the eighth edition of the Indian Ocean Conference held in Muscat, Oman during which she had wide engagements with her counterparts participating in the same forum. Concomitantly, during the visit the MoU between the Ministry of Culture, Tourism and Civil Aviation of the Government of Nepal and the Ministry of Heritage and Tourism in the Sultanate of Oman in the field of Tourism Cooperation and MoU between the Foreign Ministry of Nepal represented by the IFA and the Foreign Ministry of Sultanate of Oman represented by Diplomatic Academy on cooperation in the Fields of Diplomatic Studies and Training were signed. The visit was realized upon the cordial invitation of H.E. Sayyid Badr bin Hamad bin Hamood Al Busaidi, Minister for Foreign Affairs of the Government of the Sultanate of Oman.
• Ms. Sewa Lamsal, Foreign Secretary, leading a delegation visited Oman from 5 -9 August 2024 to participate in the first meeting of Bilateral Consultation Mechanism between the Ministry of Foreign Affairs of both the countries.

• DPM and Health & Population Minister Mr. Upendra Yadav paid a visit to Oman on 14 April 2019 during his visit to Ethiopia leading a delegation to a participate in a program organized by WTO.

• Dr. Bhim Rawal, former Deputy Prime Minister, Minister of Defence, Home Affairs and vice-chairman of CPN (UML), MP, was in a three-day private visit to Oman from 23 to 25 February 2017.

• The Right Honourable Mr. Sher Bahadur Deuba, Prime Minister of Nepal paid an Official Visit to the Sultanate of Oman between 25-28 September 2017. The Rt. Hon’ble Prime Minister was accompanied by Hon’ble Mr. Krishna Bahadur Mahara, Deputy Prime Minister and Minister for Foreign Affairs; Hon’ble Mr. Farmullah Mansoor, Minister for Labour and Employment; Hon’ble Ms. Asha Koirala, Minister for Women, Children and Social Welfare; and Mr. Shanker Das Bairagi, Foreign Secretary, among others. MOU on Bilateral Consultation Mechanism between the Foreign Ministries of both countries was signed on 27 September 2017 during the visit. The mechanism provides the platform for enhancing bilateral relations and sharing views on way forward for further strengthening bilateral ties.

• Jitendra Narayan Dev, the then Tourism Minister, paid an official visit to the Sultanate of Oman to participate in the second “UNWTO/UNESCO World Conference on Tourism and Culture” organized by the Sultanate on 11-12 December 2017. Hon. Minister was accompanied by the officials from the Ministry of Culture, Tourism and Civil Aviation.

• Hon’ble Mr. Min Bahadur Shrestha, Vice Chairman of National Planning Commission and Mr. Lal Shankar Ghimire, Joint Secretary of NPC were in a three 3 day official visit to Oman from 27- 29 November 2016. They participated in Tanfeed program of the Government of the Sultanate of Oman.

• Suresh Man Shrestha, the then Secretary of the Ministry of Culture, Tourism and Civil Aviation paid a three-day official visit to Oman. During his visit, a Memorandum of Understanding (MOU) on Air services was signed on 28 December 2014 which increased the flight frequency between the two countries up to twenty-one flight a week, which was seven flights a week according to the earlier MOU signed on 2 December 1997.

• Arjun Bahadur Thapa, the then Foreign Secretary, accompanied by Mr. Kali Prasad Pokharel, the then Chief of Protocol and Mr. Buddhi Khadka, Joint Secretary of Labour Ministry paid an official visit to the Sultanate of Oman on 23-26 December 2013. During the visit, Mr. Arjun Bahadur Thapa inaugurated the newly opened Embassy of Nepal in Muscat.

• Late King Birendra and Queen Aishwarya paid a visit to Oman in 1986.
• At the invitation of the Government of the Sultanate of Oman, an official delegation led by the then Minister for Foreign Affairs H.E. Mr. Ranadhir Subba had represented Nepal at the 15th National Day of Oman in November 1985.

     Visit from Oman side:

• H.E. Sayyid Badr bin Hamad bin Hamood Al Busaidi, Minister for Foreign Affairs of the Government of the Sultanate of Oman paid a two-day official visit to Nepal at the invitation of Foreign Minister Dr. Arzu Rana Deuba from 26-27 August 2024.
• His Excellency Jamal al-Moosawi, General Secretary of National Museum of Oman visited Nepal in April 2023.
• E. Abdul Salam M. Al Murshidi, President of State General Reserve Fund of the Sultanate of Oman and some officials from the Oman Chamber of Commerce visited Nepal from 29-30 March 2019 to participate in Nepal Investment Summit 2019.
• A technical team of the Ministry of Manpower of the Sultanate of Oman comprised of H.E. Mr. Salim bin Said Al Badi- Director General of Labour Welfare, Abdullaziz Bin Hamed Al Rawahi- Director of Legal Department; Mr. Abdullah Bin Murad Al Mullahi– Director of International Organizations & Foreign Relations visited Nepal on 01-04 May 2019 to finalize the proposed MOU in the field of labour migration.

Economic Relations

Since both countries are endowed with abundant of natural resources, there exists tremendous scope for further promoting cooperation between the two countries in the fields of investment, trade, tourism and human resource utilization. Nepal could be a destination country for tourism, trade and investment opportunity for Omani nationals. Both Nepal and Oman should further strengthen their economic ties in the domain of their competitive advantage.

Virtually there is no investment in Nepal from Omani nationals. However, Nepal could become a good choice for them to make investment. Nepal has adopted liberal economic policies since the early 1990s. The Government of Nepal is making constant update and adjustment in various policies, rules, procedures, laws and regulations relating to business so as to ensure an investment-friendly environment and attract massive foreign direct investment in the country for accelerating the momentum of economic transformation.

The trade between Nepal and Oman is small, with quite negligible export from Nepal. According to the Trade and Export Promotion Center, Nepal, Nepal exported worth NPR 930103 and imported worth NPR 8,890,336,319 in 2022. The major items of import were uria (95%) and gypsum (4%) and the export from Nepal consisted of woolen shawls and scarves, cotton sacks and bags, among others.

There is a need of enhancing trade relations in the interest of both the countries. If explored and pursued, Nepali tea, yarchagumba, silajit, vegetables, honey, handicrafts, carpet, pashmina seem to be viable and profitable export items to Oman. In order to explore the possibility of trade between the two countries and establish trade linkages, frequent meetings and discussion between the two Chambers of Commerce and Industries as well as between businessmen of the two countries may prove useful.

Oman has one of the largest Sovereign Wealth Fund worth USD 41.5B. It aims to build an investment portfolio centered on a diversified pool of investment tools and assets (including a wide range of geographies and sectors). It also works through Joint Ventures investment, i.e. Oman India Joint Investment Fund I USD 100M and II USD 240M. The 100M Pak Oman Investment Company Limited aims to promote economic growth in Pakistan and Oman through industrial development and agro-based industries. Nepal may also approach for similar fund mobilization from the Sovereign Wealth Fund, Oman.

(Oman is carrying its economic and social development under the framework of Oman Vision 2040. It is the national reference for planning for the period of 2021-2040, and the source of national sector strategies and five-year development plans. It was put in place under the wise guidance of His Majesty the late Sultan Qaboos Bin Said, and carried forward by His Majesty Haitham Bin Tarik.)

Tourism

Tourism is an important area where both countries need to cooperate for mutual benefit. So far, there is a small inflow of Omani nationals and expatriates to Nepal. Nepal could provide best alternative ambience for Omani tourists to spend their holidays away from the bustle of modernity. There is indeed a great potential for attracting Omani tourists through dissemination and publicity of natural beauty, culture and the excellent hospitality of the Nepali people. Nepal can be a destination of choice for Omanis. The embassy needs to be provided with enough resources to effectively play its role in this regard. Production and dissemination of tourism promotion materials in Arabic Language can prove instrumental in promoting Nepal in the entire Arab Region. The MoU on Tourism cooperation signed between the two countries during the visit of the Hon’ble Foreign Minister Dr. Arzu Rana Deuba will provide a framework to work for the mutual benefit of both the countries.

Continuity of stalled direct flight of Salam Air from Oman to Kathmandu would provide opportunity for Nepali migrant workers and the Omani visitors to commute easily which would also be helpful in further enhancing people-to-people relations.

Labour Relations

The Sultanate of Oman is one of the destination countries for migrant Nepali labourers. It is estimated that the Sultanate currently hosts more than 25,000 Nepali workers including some medical practitioners.

Dedication to work, loyalty, sincerity and integrity are some attributes of Nepali workers that have enabled them to earn the trust and goodwill of the people and the Government of the Sultanate of Oman.

MOUs signed between Nepal and Oman

• Agreement on Mutual Visa Exemption for holders of Diplomatic, Special, Service and Official passports (2020)
•  MOU on Bilateral Consultations (2017)
• MoU between Oman Chamber of Commerce and Industry and FNCCI (2010)
• MoU on Air Service Agreement (2014)
• MoU between National Museum of Nepal and the National Museum of Sultanate of Oman in the Cultural and Museum Fields (2019)
• Land Lease Agreement (2020)

Ministry of Foreign Affairs

Central Asia, West Asia and Africa Division

18 March 2025