PM urges UAE business community to invest in Nepal

By A Staff Reporter,Kathmandu, Dec. 2: Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has urged the business community of UAE to invest in Nepal.

“With the successful transition to the Federal Democratic Republic system of governance, Nepal is steadily moving towards the path of peace, prosperity, and development. We aspire to graduate from the LDC category by 2026 and have a plan to become a middle-income country status as well as achieve the Sustainable Development Goals (SDGs) by 2030. For, this we require huge investments in infrastructure, human resources, and technology. So, I invite our trusted friends and the vibrant business community of the UAE to invest in Nepal,” he said while addressing the Nepal-Dubai Business Forum on Thursday. 

In recent times, the government of Nepal has undertaken many policy, legal, procedural, and institutional reforms to create a conducive business environment for attracting FDI in Nepal, he said. 

Prime Minister Prachanda is now in Dubai leading a Nepali delegation to attend the COP 28. 

“We have enacted the Foreign Investment and Technology Transfer Act, Public Private Partnership and Investment Act, Industrial Enterprises Act and Special Economic Zones Act among others. These laws have been reviewed regularly to promote and accelerate investments in Nepal,” the Prime Minister said.

He said that Nepal was in the process of concluding the Bilateral Investment Agreement with many countries including the UAE to address the interests of the investors.

Stating that the business environment in Nepal has been improving significantly, he urged investors from the UAE to explore the boundless opportunities in Nepal.

“Nepal enjoys macroeconomic stability with adequate foreign exchange reserves, contained inflation and favourable balance of payment. The economy is gradually recovering from the adverse impacts of COVID-19 pandemic and other adversities. The opening up of markets presents us with numerous opportunities,” he said. 

The UAE is the second largest economy of the Gulf region and an emerging global economic power, he said, adding that Nepal considers that strengthened economic ties between the two countries would provide enormous opportunities for mutual benefit.

He appreciated the government of the UAE for being a kind host for Nepali migrant workers who have not only supported their families back home but also contributed to the development of the host country. 

“Nepal and the UAE need to further strengthen people-to-people relations. The fact shows the dismal flow of Emirati tourists to Nepal despite the natural beauty, proximity and an arrangement of on-arrival visa,” he said.  

The Prime Minister said that Nepal welcomes the initiatives taken by the government of the UAE for the clean energy transition. 

“Hosting COP 28 and headquarters of the International Renewable Energy Agency in the UAE are the testaments of its commitment to address the adverse impact of climate change and other environmental crisis,” said Prime Minister Prachanda. 

On the occasion, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Chandra Prasad Dhakal extended a warm invitation to UAE investors, urging them to explore lucrative opportunities in Nepal’s burgeoning sectors. 

Dhakal, representing the apex body of Nepal’s private sector, FNCCI, highlighted PM Prachanda’s commitment to economic revival, setting the stage for a thriving business environment. 

Nepal’s external sector stability, coupled with a youthful population, creates a solid foundation for trade and investment, making it an attractive prospect on the global stage, Dhakal said. 

Identifying key sectors for mutual growth, he emphasised four areas with immense investment potential---energy, tourism, agro-processing, and ICT. 

He encouraged the UAE investors to capitalise on Nepal’s promising energy market as regional markets open up, presenting a timely opportunity for impactful investments. 

He invited UAE investors to explore opportunities in agro-processing, leveraging Nepal’s unique climate and the Himalayan region’s agricultural products.