BILATERAL RELATIONS

Political Relations
Nepal and the Kingdom of Saudi Arabia established diplomatic relations on March 15, 1977. After the establishment of the Diplomatic relations, Nepal opened its Embassy in Saudi Arabia in 1978. Saudi Arabia opened its Embassy in Kathmandu, Nepal in 2012. Ever since the establishment of diplomatic relations, Nepal and Saudi Arabia have been enjoying relations based on friendship, goodwill and mutual understanding. Bilateral relations have continued to grow to date. Both countries have expressed strong commitments to the principles of the United Nations Charter and work together in the United Nations as well as other international fora for mutual benefit.

Opening of Saudi Embassy in Kathmandu has been, among other things, helpful to facilitate the visa process and other arrangements of Nepalese workers willing to take up employment in Saudi Arabia as well as Nepali Hajj pilgrims.

Foreign Employment
Nepali people working in the Kingdom of Saudi Arabia have played an important role to promote bilateral relations between the two countries. Currently, more than 400 thousand Nepali nationals are working in the Kingdom in various professions. However, number of unskilled labour represents more than two third of the total Nepali work force in the Kingdom. The prospect of employment in Saudi Arabia is growing due to ongoing massive development works being undertaken by the Saudi Government under Saudi Development Vision 2030. However, there are also complex issues related to the proper management of the various problems faced by the Nepali migrant workers - ranging from malpractices in recruitment at home, exploitation at the destination country by the employers themselves and by middlemen, for lack of appropriate and swift legal protection to foreign workers. Saudi Arabia has remained among top destination countries to send remittance.

Development Cooperation
Nepal received loan assistance from the Saudi Fund for Development for several hydroelectric projects including Marsyangdi Project and the Budhi Ganga Hydro-Electric Power Plant Project in Nepal. There was also a substantial contribution from Saudi Fund for Development in the construction of East-West Highway of Nepal. Presently Bagmati I & II Irrigation Project have received fund from the Saudi Fund.

Economic Relation
Economic cooperation between the two countries began in 1978 when Nepal opened its Embassy in Saudi Arabia. The economic cooperation extended by the Saudi Government has been primarily focused towards upliftment of Muslim community, agricultural development and emergency assistance.

Trade and Business
The trade between Nepal and Saudi Arabia has remained in favor of Saudi Arabia. Nepal exported items of around $385,000 to Saudi Arabia. The main products that Nepal exported to Saudi Arabia were Knotted Carpets ($83.4k), Scarves ($6.69k), and Mattresses ($850). Over the past 5 years the exports of Nepal to Saudi Arabia have increased at an annualized rate of 80.7%, from $20k in 2017 to $385k in 2022.

In 2022, Saudi Arabia exported products worth $51.7 million to Nepal. The main products that Saudi Arabia exported to Nepal were Ethylene Polymers ($35.5M), Gold ($24M), and Propylene Polymers ($19.8M). Over the past 5 years the exports of Saudi Arabia to Nepal have increased at an annualized rate of 96.1%, from $1.79M in 2017 to $51.7M in 2022.

Nepal should explore the ways and means to bridge the gap by way of increasing its export to Saudi Arabia.

Tourism
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. Himalaya Airlines is operating direct flights to Riyadh and Dammam. Nepal Airlines is at the final stage of starting its flights to Riyadh. Family tourism for a longer duration is another way to attract the Saudis because of its climate.

Agriculture
Saudi Arabia has been importing agricultural consumable food items from the different countries to fulfill the demand of the markets. Production and export of the organic agricultural products can be one of the potential areas to bridge the gap of trade deficit with the Kingdom. 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

Cultural Cooperation
Every year, a number of people from the Muslim Community from Nepal pay a visit to the holy sites of Mecca and Medina to perform Hajj pilgrimage. Around 1200 pilgrims visit these holy places every year. The Government of the Kingdom had suspended Hajj for 2020 and 2021 due to Covid 19 pandemic. The Government of Nepal has been providing all possible assistance to the Community so that Nepali Muslims could perform their pilgrimage without any hindrance. The support and cooperation received from the Saudi Government to Nepali pilgrims has greatly contributed in further cementing the bonds of friendly relations existing between the two countries and the people. As the number of Hajj pilgrims has grown over the years, Nepal Government has officially requested the Government of the Kingdom to increase the quota for Nepali Muslims. Saudi Arabia has also been supporting various Madrasas in some districts of Terai. The King Salman Relief Centre has sent 50 thousand Kg of dates as a gift to Nepal in 2020.

Agreements

1. General Cooperation Agreement between the Foreign Ministries of the two countries was signed during the visit of His Highness Prince Faisal bin Fahran Al Saud, Minister for Foreign Affairs of the Kingdom of Nepal in 2022.
2. Bilateral Labour Agreement (Draft is under discussion)
3. Bilateral Consultation Mechanism (in the process of first meeting)

Major Bilateral Visits

Visits from Nepal

1. Late King Birendra and late queen Aishwarya paid a visit to Saudi Arabia in 1983.
2. Former King Gyanendra visited Saudi Arabia on an official visit in 1983 in his capacity as Prince.
3. The then Minister for Labour Mr. Bal Bahadur K.C. paid an official visit to Saudi Arabia in 1999.
4. After the killing of 12 Nepalese nationals by terrorists in Iraq, a high-level delegation headed by then Minister for Information and Communication Dr. Mohmad Mohsin visited Saudi Arabia 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.
5. Representing the then King, former crown prince Paras visited Riyadh to express condolences on the sad demise of His Majesty King Fahd Bin Abdul Aziz al-Saud in August, 2005.
6. Minister for Labour, Employment and Social Security Hon. Mr. Sharat Singh Bhandari represented Nepal in the Ministerial Roundtable and shared Nepal"s perspectives on the important theme of “Tomorrow"s Labour Market: Fit for Growth” on 13 December 2023.
7. Minister for Physical Infrastructure and Transport, Hon. Mr. Devendra Dahal, represented Nepal at the Ministerial-Level Road Safety and Sustainability Conference and Exhibition under the theme “Innovating for Tomorrow” on November 3-4, 2024 and shared Nepal"s perspectives on road safety and sustainable infrastructure development, aligning with global innovation goals.

Visits From Saudi Arabia

1. His Highness Prince Faisal bin Farhan Al Saud, Minister of Foreign Affairs of the Kingdom of Saudi Arabia visited Nepal on 14-15 March 2022.
2. His Highness Prince Alwaleed Bin Talal Bin Abdulaziz Al-Saud visited Nepal in November 2010. Saudi High-Level delegation arrived in Kathmandu on 24 December 2011 for their three days official visit.
3. Vice Chairman of Saudi Fund for Development visited Nepal in October 2019 to sign documents of Saudi loan assistance of NRS 3. 3 billion.

Since the exchange of high-level visits have played important role in promoting bilateral relations between nations, there is more need of exchange of high-level visits than ever.

Embassy of Nepal
Riyadh
November 2024