Lately, the bilateral relationship between the United Arab Emirates (UAE) and Nepal has transformed into a robust, multifaceted strategic alliance, encompassing key areas such as trade, labor mobility, cultural exchange, and infrastructure development. This partnership reflects both nations’ commitment to sustainable development, economic resilience, and mutual prosperity.
A recent milestone in this growing relationship came with the visit of Sheikh Abdullah bin Zayed Al Nahyan, UAE Minister of Foreign Affairs. During his visit, he met with Nepal’s President Ram Chandra Poudel and Deputy Prime Minister Prakash Man Singh, signaling a deepened diplomatic engagement and a forward-looking partnership between the two countries.
Abdulla Saeed Mubarak Jarwan Al Shamsi, UAE Ambassador to Nepal, has led key diplomatic missions, including facilitating the visit of Sheikh Abdullah bin Zayed, strengthening UAE-Nepal relations through mutual understanding and collaboration. The trade between the UAE and Nepal has experienced impressive growth, with the UAE now emerging as Nepal’s primary trade partner within the Gulf Cooperation Council (GCC). In 2023, UAE’s export to Nepal was $265.76m and key products were gold, computers, copper wire, machinery and plastics. Similarly, Nepal’s export to UAE stood at $4.56m and key export items were handwoven carpets, tea, spices and medicinal herbs.
Over the past two years, bilateral trade has grown by 7.8 percent. Nepal continues to focus on expanding its agricultural and natural product exports to meet the rising demand in the UAE market. Labor migration remains a cornerstone of the UAE-Nepal partnership. As of 2024, over 225,000 Nepalese nationals are employed in various sectors across the UAE, contributing significantly to both economies. The breakdown of employment sectors is as follows: construction: 40 percent; hospitality: 25 percent; retail/logistics: 20 percent and healthcare/domestic work: 15 percent. In 2025, remittances from the UAE to Nepal reached $7.74bn, accounting for 24 percent of Nepal’s GDP. These funds play a crucial role in supporting education, healthcare, and rural infrastructure development across Nepal.
Air connectivity between the UAE and Nepal continues to strengthen. Flydubai operates 28 weekly flights between Dubai and Kathmandu, facilitating robust travel links. Additionally, a new daily route to Gautam Buddha International Airport in Bhairahawa, set to launch in Nov 2024, will enhance access to Lumbini, Nepal’s religious tourism hub, further strengthening bilateral tourism ties. The future of UAE-Nepal relations holds immense potential, particularly in the following sectors such as urban development, renewable energy, and technology and digital trade.
The UAE’s expertise in smart city projects complements Nepal’s Vision 2040, aimed at modernizing urban infrastructure. There is significant potential for collaboration between the UAE’s solar energy initiatives and Nepal’s untapped hydropower resources. Nepal’s rapidly growing tech and e-commerce sectors present new opportunities for UAE investors seeking to explore digital trade and innovation.
The UAE is home to over 225,000 Nepali expatriates, whose presence strengthens cultural ties between the two nations. The UAE’s labor diplomacy initiatives have focused on protecting workers' rights and promoting skills development, allowing Nepalese nationals to build sustainable careers and contribute to both the UAE and Nepal’s economic growth.
The UAE-Nepal relationship has evolved into a multifaceted partnership based on economic resilience, human capital empowerment, infrastructure development, cultural exchange and diplomacy. This evolving alliance embodies the shared vision of both countries for a brighter, more prosperous future. Through their continued collaboration, the UAE and Nepal are paving the way for long-term success and setting an example of mutual respect, cooperation, and a shared commitment to global prosperity.
