By A Reporter

In 2025, the relationship between Nepal and the United Arab Emirates (UAE) has matured into a robust strategic alliance, spanning trade, labor mobility, cultural diplomacy, and infrastructure collaboration. This dynamic partnership continues to evolve, with the UAE leading with a vision of sustainable development, economic resilience, and shared prosperity.

A recent high-level diplomatic mission marked a significant milestone in the Nepal-UAE relations, as Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Foreign Affairs, visited Nepal. During this visit, he met with Ram Chandra Paudel, the President of Nepal, and Prakashman Singh, Deputy Prime Minister and Minister for Urban Development, underscoring the growing diplomatic engagement between the two nations.

Bilateral Trade Relations: 2023 Insights

Trade between the UAE and Nepal has seen steady growth, with the UAE emerging as Nepal's leading trade partner in the Gulf Cooperation Council (GCC). In 2023, bilateral trade reached impressive figures:

UAE → Nepal exports: $265.76 million

Gold: $172 million (≈65% of total exports)

Computers: $28.8 million

Emerging sectors: Copper wire, machinery, and plastics.

Nepal → UAE exports: $4.56 million

Key exports: Handwoven carpets, tea, spices, and medicinal herbs.

This trade growth, with a 7.8% increase in the past two years, highlights the UAE’s central role in Nepal’s global trade network. The Nepalese government is keen to expand its agricultural and natural product exports, particularly in sectors where demand is growing in the UAE market.

Labor Mobility and Economic Impact

Labor mobility has been a cornerstone of UAE-Nepal ties. As of 2024, more than 225,000 Nepalese nationals are employed in the UAE across various sectors:

Construction: 40%

Hospitality: 25%

Retail/Logistics: 20%

Healthcare/Domestic Work: 15%

Remittances from the UAE are crucial to Nepal’s economy, with $7.74 billion in remittances flowing into Nepal by mid-March 2025, accounting for 24% of Nepal’s GDP. These remittances significantly support education, healthcare, and rural infrastructure development in Nepal.

Air Connectivity

Flydubai, a key player in connecting the UAE and Nepal, operates 28 weekly flights between Dubai and Kathmandu. Additionally, the launch of a new daily route to Gautam Buddha International Airport in Bhairahawa, set for November 2024, will enhance connectivity to Lumbini, Nepal’s religious tourism hub.

This boost in air connectivity promises to strengthen two-way tourism flows between the nations, with Nepalese visitors exploring the UAE’s luxury and hospitality sectors, while UAE travelers discover Nepal’s adventure, eco-tourism, and religious destinations.

Strategic Insights and Future Pathways

Looking forward, the UAE-Nepal partnership is poised to expand in several key sectors:

Urban Development: With the UAE’s expertise in smart city infrastructure, there is growing potential to support Nepal’s Vision 2040, which seeks to modernize urban centers.

Renewable Energy: The UAE’s experience in solar energy, coupled with Nepal’s untapped hydropower resources, presents exciting opportunities for investments in green infrastructure and sustainable energy projects.

Technology and Digital Trade: Nepal’s burgeoning tech and e-commerce sectors offer promising avenues for UAE investors seeking to capitalize on digital trade and innovation.

Cultural and Human Bridges

With a significant 225,000+ Nepalese expatriates in the UAE, the people-to-people ties between the two countries have deepened. These Nepalese communities contribute to cultural integration, fostering mutual understanding and respect. Through labor diplomacy, the UAE continues to empower Nepal’s workforce by focusing on labor protection, skills development, and career advancement.

Evolving Partnership

The UAE-Nepal relationship in 2025 has evolved far beyond labor migration and trade. The partnership is now a multidimensional strategic alliance, built on:

  • Economic resilience
  • Human capital empowerment
  • Infrastructure collaboration
  • Cultural diplomacy

The UAE leads with partnership, empowers with purpose, and inspires with vision. Through this collaboration, both nations are advancing shared goals of prosperity, stability, and mutual respect.

In conclusion, the UAE-Nepal alliance is not just about trade or remittances; it’s a testament to the power of collaboration in building a stronger, more connected world. Driven by pride, resilience, and leadership, this partnership represents a promising future for both nations as they work together to achieve shared success on the global stage.

Source: UAE Embassy Media