Nepal and Kingdom of Saudi Arabia: Closer friend in the Middle East

Bharat Khanal

Section Officer

Ministry of Foreign Affairs of Nepal

Bilateral Relations:

The Kingdom of Saudi Arabia is one of the oldest friends with whom Nepal established her diplomatic relations in the Middle East. Previously, many countries of the Middle East were accredited to embassy of Nepal in Riyadh. The relationship between Nepal and the Kingdom of Saudi Arabia are marked as bonds of friendship, goodwill, mutual understanding and cooperation ever since the establishment of diplomatic relation on March 15, 1977 AD. The friendly relations between the two countries have been further complemented by growing people to-people contacts, mainly facilitated by the presence of a large number of Nepali migrant workers in the country. The Embassy of Nepal to the Kingdom of Saudi Arabia was established in 1978 in Jeddah the former capital of Saudi Arabia and shifted to Riyadh in 1984. The Embassy has been playing an important role in promoting the bilateral relations mainly based on economic and social cooperation between Nepal and the Kingdom of Saudi Arabia. The Embassy in Riyadhis concurrently accredited to the Republic of Yemen and Republic of Somalia. KSA is spread over 2.15 million square kilometers (two-thirds the size of India), covering 80 per cent of the Arabian Peninsula.
Nepal greatly values the bond of friendship it enjoys with the Saudi Arabia. Our relations have progressively evolved over the years to cover political, economic, social,cultural and educational dimensions. It is a multidimensional partnership. Continued engagements at various levels and mutual cooperation in the areas of common interest have nurtured our friendship. Full spectrum of our friendship is much more than the formal contacts. People-to-people relations has given added value to Nepal-Saudi Arabia relations.

Crossed flags of Nepal and the Kingdom of Saudi Arabia. Official colors. Correct proportion. Vector illustration

Nepal and Saudi Arabia have been enjoying best of relations with each other. Bilateral relations have continued to be strengthened on the basis of the five principles of peaceful co-existence, friendship and cooperation. Both the nations have expressed avowed  commitments and loyalty to the principles of the United Nations Charter and work together in the United Nations as well as other international forum for the common benefit of the humankind. On cultural fronts, every year a large number of people from the Muslim Community pay a visit to the holy sites of Mecca and Medina to perform Hajj. Around 1200 pilgrims visited these places in 2019. Harmony and co-existence make essential ingredients of our culture.

Bilateral Agreements:

We agreed to work together to take our relations to the next level through enhanced political engagement and promotion of mutually beneficial cooperation in diverse fields.

We underlined the importance of exchanging high level visits between the two countries, establishing bilateral political consultation mechanism and concluding a host of agreements and understanding to further cooperative partnership. With the growing importance of the Saudi Arabia in the Gulf region and the world, Nepal looks forward to strengthening its relation with the Saudi Arabia in a newer height in the days to come. An important agreement on trade, investment and tourism is in preparation. Labor agreement between the countries is also in the final phase. Nepal firmly believes that labor agreement should be in the interest of the labor.

Trade and Investment:

A great prospect of economic cooperation exists between the two countries. Saudi Arabia is a country with vast oil and mineral resources and Nepal can explore possible avenues for cooperation in this sector. The trade between Nepal and Saudi Arabia has remained in favor of Saudi Arabia. The major export items included handbags, carpet,CD cassette, and woolen shawls. Major imported items were plastics, mineral fuels and oils, Aluminum, floor covering textile and copper. Nepal should explore the ways and means to bridge the gap by way of increasing its export to Saudi Arabia. We have to increase our export volume so as to reduce the trade deficit.
Production and export of the organic agricultural products can be one of the potentials areas in the development of Nepal-Saudi Arabia relations. The fertile land and suitable climate for the organic products in Nepal could be one of the attractive areas of joint venture for the Saudi Investors. The potential Saudi investment in this sector basically could be mobilized in large scale for the scientific and mass production to fulfill the demand of the Saudi markets.

Other major exports from Nepal to the Saudi Arabia include Woolen shawls, Scarves,Carpets, chewing tobacco etc: whereas Gold, Silver, Petro-bitumen, Lubricating Oiletc. are the major importable items from the KSA. Nepal has been exploring the trademarket in the RSA in recent years and it might be a lucrative market for the Nepalese cereals, food items and herb-products. Trade experts should explore the potential areas by which trade can be promoted for the mutual benefit of both countries.

Tourism Attractions:

Tourism holds great scope for promotion between the two countries. Tourism can be one of the potential areas in the development of Nepal-Saudi Arabia relations. Nepal can become a destination for the Saudi local population who visit abroad during the summer to avoid the adverse climatic conditions. There is a need for increasing direct flights toNepal 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 Saudis because of its climatic conditions. Nepal has been one of the nearest and affordable tourism destinations.

Right from the airport to every touch point that a visitor to Nepal experiences must be converted to the best possible hospitality we as a country offer our guests. Strategically,positioned between two of the world’s largest economies – India and China – Nepal has immense opportunity for growth in the tourism sector. To build the resilience and competitiveness of the tourism industry and grow its economic contribution, the government has identified key areas of focus in all the provinces with emphasis on infrastructure development and connectivity. Primary focus areas are building of roadand rail networks, airports and cable cars, opening of new trekking and mountaineering routes, air safety and aviation expansion, stadiums and convention centers. Operation by Himalayan Airlines since September 2017 has definitely been a boost for promoting tourism in Nepal. Similarly, operation by National Carrier Nepal Airlines and HimalayanAir lines between Kathmandu-Riyadh-Kathmandu is in final phase. Similarly, from the Jan 2021 direct flight between Kathmandu and Riyadh is operated by Himalayan airlines.

Our country is exceptionally gifted in nature, culture and heritage. Many of our beautiful locations are yet to be explored and accessed. Beautiful majestic Himalayas, deep valleys and plains of Terai are so mesmerizing. Even without adequate infrastructure and sophistication, our country is already featured in the top lists of various travel related evaluators. With enhanced publicity, we aimed to host two million tourists in 2020 but this dream was shattered due to Covid -19 pandemic. Similarly, we have very simple visa procedure. Tourists from many countries can get visa on arrival at different points in Nepal. Saudi nationals can also obtain visa on arrival. But Nepal lacks publicity.

Many Saudi tourists are not aware about the beautiful aspects of Nepal. Halal food.security and recreation activities are mostly needed by Saudi tourists. Technology shall he used for the promotion of tourism. Nepal is a prized destination for travelers as well as investors who want to do profitable business in the travel and tourism industry.

High level official and business visits:

High-level visits between the two countries have greatly contributed in enhancing the relations between the two countries. From Nepalese side, late king Birendra and late queen Aishwarya also paid a visit to Saudi Arabia in 1983. Former king Gyanendra visited Saudi Arabia on an official visit in 1983 in his capacity as prince. Similarly,several Ministers and State ministers have visited Nepal on different occasions.

Similarly, From Saudi Arabia His Royal Highness Prince Alwaleed Bin Talal Bin  AbdulazizAl saud visited Nepal in November 2010 and Saudi High-Level delegation arrived in Kathmandu on 24 December 2011 for their three days official visit. Both countries have realized the need of high-level visits at political level for cementing our ever-expanding brotherly relations. We have to initiate high level visits and engagement,youth exchange programs, provide trainings and scholarships in the field of expertise,visa simplification and exemption for the diplomats and government officials etc.

Every year hundreds of people climb Mount Everest. Currently, many climbers from the Gulf region have made their journey to the top of the world successful. Nepali Embassy in the gulf region and my own Embassy in Riyadh we are organizing functions every year to recognize and honor the successful summiteers. Many businessmen visit Nepal to recruit workers for different companies.

Saudi Fund for Development Aid to Nepal:

International development cooperation has an important role to play in Nepal’s development efforts. The financing agreement between Government of Nepal and Saudi Fund for Development (SDF) concluded on October 11, 2019 in Ministry of Finance at Kathmandu with an aim to support the reconstruction of individual houses, health and education facilities that were devastated by the earthquake. The concessional loan of 112.5 million Saudi Riyal (Rs 3.33 billion) will support the “Program for Reconstruction of Houses, Health and Education Facilities in Earthquake Affected Areas.

Nepal had received loan assistance from the Saudi Fund for Development for several hydroelectric projects including Marsyngdi Project. There was also a substantial contribution from Saudi Fund for Development in the construction of East-West Highway of Nepal. Presently there is Saudi cooperation in Bagmati I & II Irrigation Project. The economic cooperation extended by the Saudi Government has been primarily focused towards upliftment of rural community, agricultural development and emergency assistance. Further, there are many possible areas of cooperation in the future.

Nepalese Expats and Remittances:

Saudi Arabia has been one of the popular destinations among Nepali migrant workers over the past two decades. Nepalese have been welcomed by the Saudi people very much due to their dedication to work, loyalty, honesty, sincerity and integrity. The prospect of employment in Saudi Arabia is ever growing due to ongoing development works being undertaken by the Saudi Government.

Nepal is one of the most important sources of labor destination for the KSA as well constituting the fifth largest group of expatriates in this country. Nepalese work in the field of Driving, Sales, Hospitality, Construction, Cleaning etc. Provided that Nepal trains and sends the semi-skilled and skilled labor-force in this country, there is lots of demand for the Nepalese workers for their hard work, sincerity and performance at par-excellence in their fields.
Nepal is a remittance-based economy as it constitutes more one fourth of its total GDP. The contribution of the remitters from the Gulf Countries like the Saudi Arabia for sustaining the economy of the country is praiseworthy. The Saudi Arabia is the second largest source of remittance income for Nepal. The Embassy has been providing itsservices and other required activities to the Nepalese nationals who are nearly four hundred thousand in number working in the Kingdom as well as in other countries to which the Embassy is concurrently accredited.

Priorities and Challenges:

Both Nepal and the Saudi Arabia have shared values and commonalities in their relations and the combined duties towards the world polity. We have been enjoying excellent bilateral relations and this would be at its zenith as the Saudi Arabia has opened their residential mission to Nepal and pave the way for more engagement not only at government level but also at the level of people-to-people relations, business and cultural engagement. The current development pace of the Saudi Arabia would not have been possible unless the contribution made from the Nepalese labors alike. Likewise,the remittance the migrants earned here has significantly contributed in the living standards of their families back in Nepal. Therefore, the relation as a labor sending and receiving countries has to be redefined to the optimum benefit of both the countries and the workers.

Malpractices in recruitment at home to exploitation at the destination country for lack of appropriate and swift legal protection to foreign workers is a big challenge. With limited human and other resources, the Embassy has to handle the ever-growing demands of the citizens abroad. Most of the workers who are unskilled come to the Kingdom without proper training and experience who are prone to face many challenges. Saudi Arabia being a very big country in terms of geography it’s a challenge to meet the consular and other demands of the citizens travelling to their workplace. Similarly, diaspora management and managing ever expanding Nepalese community organizations also requires special craftsmanship for the embassy.

Prospects and Opportunities:

Diverse geography, warmhearted and hospitable people are the hallmark of Saudi Arabia that has similarity with Nepal. Rich history, heritages, historical sites and unique  the peculiar features of Saudi Arabia. The rapid changes and reforms that are taking place in the Saudi Arabia in a breath-taking pace is a great lesson for many countries to learn. Moreover, vibrant and energetic youths are assets of Saudi Arabia. All the way from Eastern to Southern and down the northern many similarities exists in this country.

Moreover, the development activities that are taking place under the current leadership of Saudi Arabia is exemplary.

A new democratic and inclusive Constitution promulgated in September 2015 has settled long-standing political issues. Now the whole state mechanism is focused towards economic growth and development. We are now focused on socio-economic transformation. Many investment and labor related laws have been changed to attract the Foreign Direct Investment in Nepal. During the Covid pandemic Saudi Arabia provided health facilities and other support to Nepalese migrant workers.

In nutshell, the constant engagement in political, cultural and business front, sharing of information in any critical matters and common view on major regional and world issues will make the bilateral relation strong.

# Text courtesy: Nepal Council of World Affairs (NCWA) Journal, 2022’
Thanks to the distinguished author and the NCWA team of editors. Special Thanks to VP of NCWA Shri B. N. Shrestha who provided the journal: : Upadhyaya. N. P.
References:
https://mofa.gov.np/foreign-policy/bilateral-relation/


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