Brief on Nepal-Qatar Relations

1. Nepal and the State of Qatar established their diplomatic relations on 21 January 1977.  Since that time onwards, bilateral relations between the two countries are cordial and friendly that are based on mutual trust, respect, understanding and cooperation. Nepal opened its Embassy in Doha on 11 July 2000 where as Qatar set up its Embassy in Kathmandu in August 2011. Before that, Qatari Ambassador resident in New Delhi was concurrently accredited to Nepal.

2. As Nepal and Qatar share similar views on many international agenda and issues, both countries at the United Nations, Non-Aligned Movement, and other international forums have been working in tandem and playing active role for the cause of peace, security and development in the world.

3. Exchange of visits at different levels and interactions thereof help promote understanding and good will which in turn also help widen and heighten the subsisting bonds of ties. After the successful people’s revolution II in Nepal in 2006, Right Honourable Dr. Ram Baran Yadav, President of Nepal paid a visit to the State of Qatar on 10-13 October 2011. Earlier on 14-16 March 2009, former Foreign Minister Mr. Upendra Yadav paid an unofficial visit to Qatar. Similarly, the present Prime Minister Dr. Baburam Bhattarai, paid a visit to Qatar from 28 November to 03 December 2008, in the capacity of the Minister for Finance and Leader of Nepalese delegation, to participate in the Follow-up of International Conference on Financing for Development to Review the Implementation of Monterrey Consensus.

4. Since both countries are endowed with natural resources, there is an ample scope of promoting cooperation in the fields of trade, investment, agriculture, and tourism and manpower utilization. Moreover, Nepal is a country of choice as a destination for tourism, trade and investment opportunity. The already adopted liberal economic system needs to be accommodated through timely amendment of related rules and regulations. The Government is under the process of amendment of various rules and regulations to match the current policies and strategies adopted by the Government. Through these amendments, the Government has expected to create an investment friendly atmosphere in the country to expedite the economic revolution together with the political transformation. Amendments were also brought into the foreign direct investment related laws and regulations. Now, there are no legal and practical barriers to repatriate the profits from the investments. In short Nepal is a country of choice as a destination for tourism, trade and investment opportunity and both Nepal and Qatar should boost their economic relations in the domain of having comparative advantage.

5. The trade between Nepal and Qatar are insignificant. However, it is in favor of Qatar. In 2010/11, Nepal exported to Qatar textile fabric and rubberized textile fabric, CD Cassette and vegetables worth of 59 millions. During the same period, Nepal imported from Qatar polyethylene, Colour Television, polypropylene, gold, and VCRs worth of 511 millions. Nepal’s trade deficit stood NRs. 452 millions. Nepal should therefore explore the ways to decrease the gap of trade deficit through enhancement of exports to Qatar. In this context, it is the opportune time to review/amend the Agreement on Economic, Commercial and Technical Cooperation as well as MOU between Chambers of Commerce signed between the two countries.

6. Tourism is an important sector where Nepal and Qatar co-operate to each other. Nepal and Qatar signed the Air Service Agreement in 2002. At present, Qatar Airways is operating daily direct passenger flights to Kathmandu and handling a significant quantity of Nepalese export goods bound for Europe and America. The air connectivity between Kathmandu and Doha has facilitated the movement of the people to either side. Nepal’s most famous Himalayan beauty as well as its rich architecture and hospitable people are receiving worldwide attention and attracting an increasing number of tourists from around the world. Nepal could provide best alternative ambiance for Qatari tourists to spend their holidays away from the bustle of modernity.

7. Till date, there is a small flow of Qatari nationals as well as expatriates to Nepal. There is indeed a great potential to attract them through dissemination and publication of the natural beauty, culture and hospitable Nepalese people.

8. As part of the economic diplomacy, Government of Nepal has taken the policy of sending its nationals abroad for employment with honor and dignity. Pursuant to it, Nepalese people are going abroad for the quest of jobs. Qatar has become one of the most preferred destinations for employment opportunities. The flow of the people is increasing annually. According to a conservative estimate around 350,000 to 400,000 Nepalese people are working in Qatar but most of them are in menial jobs. Dedication to work, loyalty, sincerity and integrity are some of the attributes of the Nepalese workers that have earned trust and goodwill of the people and the Government of Qatar.

9. The prospect of employment in Qatar is ever growing due to the massive construction of infrastructures by the Qatari Government in the context of hosting the World Cup-2018 and implementing the vision 2030 of the Government of the State of Qatar. Qatar has stood the global recession and therefore has a robust economy.