NUAECCI urges UAE to invest in Nepal’s economic sectors

KATHMANDU: Nepal UAE Chamber of Commerce and Industry (NUAECCI) has urged the government and private sector of the United Arab Emirates (UAE) to invest in Nepal’s potential economic sectors and secure returns.

The NUAECCI called for investment in agriculture, energy, tourism and information technology, arguing that significant returns can be achieved within a short period.

At an event organised by the UAE Embassy in Kathmandu on Thursday, NUAECCI President Pawan Kumar Agrawal urged the UAE ambassador to Nepal, Abdulla Saeed Mubarak Jarwan Alshamsi, to facilitate investment by providing a detailed presentation on opportunities in Nepal.

Agrawal highlighted the potential for exporting organic produce, citing excellent opportunities to export apples, custard apples, strawberries, kiwifruit, cherries and oranges, and noted equivalent potential for organic vegetables.

“Nepali farmers have adopted organic farming methods, making their products competitive in the international market, where there is high demand for organic goods,” Agrawal said. He added that produce grown in Nepal’s higher altitudes is in strong demand, especially in Middle Eastern markets, creating attractive export prospects for farmers and agribusinesses.

The NUAECCI president informed the UAE ambassador that Nepal has abundant water flow across more than 6,000 rivers, with an economically feasible hydropower capacity of 42,000 MW. He mentioned that 2,800 MW has been developed so far—2,100 MW by the private sector—and urged cooperation to develop the remaining 30,200 MW. He said hydropower projects typically yield returns of 12% to 18% with a payback period of six to 10 years, and stressed assured markets in India and Bangladesh. He added that wind energy also offers promise, with plans to generate 20 MW from Kathmandu Valley and the surrounding hills.

He further highlighted investment opportunities in Nepal’s natural beauty and adventure tourism—paragliding, rafting, climbing and ATV riding—and said Nepal’s handcrafted wood, metal and stone products, with their unique designs and spiritual appeal, attract luxury buyers.

Agrawal said the UAE could utilise Nepal’s potential for petroleum refining. “Currently, Nepal imports all petroleum products. If a refinery capable of processing crude oil were established here, import costs would decrease and economic self-reliance would increase,” he added, mentioning that local processing could produce diesel, petrol, jet fuel, gas, wax and bitumen to meet domestic demand.

He pointed out that Nepal’s location between India and China offers strategic advantages for regional exports, and that the country provides cheap labour, favourable trade policies, a one-door system and easy repatriation of profits for multinationals.

On the occasion, the UAE ambassador said relations between the two countries could extend beyond labour ties to encompass mutual investment. He affirmed that he saw numerous opportunities in Nepal and would work to attract investors by utilising detailed data.

Chief guest at the event, Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said Nepal’s 400,000 expatriates in the UAE serve as a bridge between the two nations, and called for training centres in Nepal to produce skilled workers for the UAE. He stressed that cooperation is essential and that the government and FNCCI are working to promote Nepal’s investment prospects through diplomatic channels.