Nepal UAE Chamber seeks enhanced trade ties with UAE

 Kathmandu, June 11

Nepal UAE Chamber of Commerce and Industry (NUAECCI) has recommended the government to sign an agreement on foreign investment protection, double taxation avoidance and civil aviation cooperation in order to enhance trade and tourism in Nepal from the United Arab Emirates (UAE).

"Signing the investment protection and double taxation avoidance will create a favourable business environment that fosters trust and confidence. It signals Nepal's commitment to protecting foreign investments and promoting businesses. The UAE individuals will be more inclined to invest when they can receive tax benefits," the bilateral chamber told  Minister for Foreign Affairs NP Saud on Sunday.

A delegation of NUAECCI led by its president Pawan Kumar Agrawal met the Foreign Minster at his office to request to take some concrete measures to attract investment from the UAE to Nepal, promote bilateral trade and attract more tourists from the gulf nation.

Such agreements offer legal protection against discrimination and unfair treatment, encouraging the inflow of foreign investment.

"The businesses from UAE will bring in new technologies, managerial skills, and market insights, benefiting Nepal's various sectors," Agrawal told the Minister.

About 400,000 Nepalis are currently working in the UAE, and the country is the third largest trading partner of Nepal.

Likewise, stating the earlier civil aviation agreement signed between the two countries needs a revisit, the chamber claimed that such an agreement would lead to increased flight frequencies, more direct routes, and improved accessibility between Nepal and the UAE, resulting in greater convenience and efficiency for travellers and businesses.

Furthermore, the civil aviation agreement will promote favourable fuel, landing and ground handling rates for UAE airlines and Nepal Airlines potentially leading to more competitive airfares and better service quality, thus positively impacting the growth of the tourism and hospitality sector in Nepal.

The CCI also requested FM Saud to form a friendship committee between Nepal and the UAE to strengthen bilateral relations, facilitate cultural exchanges, tourism promotion and promote people-to-people ties.

Likewise, it suggested launching a 'Visit Nepal Campaign' in the UAE - including targeted promotional initiatives, marketing campaigns and participation in travel expos, to raise awareness and generate interest among potential UAE tourists. It may attract investment in Nepal's tourism sector as well, read the statement.

Other instruments that need to be implemented between the two countries, according to the CCI, are the signing of manpower agreement to benefit Nepali migrant workers in the UAE, an investment agreement to provide preferential access for Nepali businesses to trade fairs and exhibitions in the UAE, and cyber security agreement to make joint efforts in combating cyber threats and enhance cybersecurity measures.

"The manpower agreement would ensure the protection of their rights and welfare. It will establish clear guidelines and regulations regarding working conditions, wages, and benefits, safeguarding the interests of Nepali workers," read the statement.

Agrawal also urged the government to accept the offer made by the UAE to provide training and skill to government officials of Nepal.

In response, FM Saud stated that the suggestions were practical and expressed his commitment to communicate with the respective ministries and agencies here in Nepal to take actions on the matters.

He also said that he wanted to see some of the suggestions to be implemented at the earliest. 

 Published in The Rising Nepal daily on 12 June 2023.