Nepal UAE Chamber of Commerce and Industry recommends signing FIPA with the UAE

KATHMANDU: A delegation from Nepal UAE Chamber of Commerce and Industry met with Foreign Minister NP Saud and submitted a report on the problems and prospects of trade and tourism between Nepal and the United Arab Emirates. The delegation led by President Pawan Kumar Agrawal visited the UAE a few months ago and prepared a report including an on-site study and details that should be carried out to take the economic relations between the two countries to new heights. The delegation has urged the government to sign a foreign investment protection agreement (FIPA) with the UAE. In the meeting with Minister Saud, Chamber President Agrawal opined that investors from the UAE would feel safe to invest in Nepal after the government sign the FIPA. Agrawal said, "The agreement will provide legal protection against discrimination and unfair treatment, and encourage more investments in Nepal."  "This will increase foreign direct investment (FDI), economic growth, job creation and also increase knowledge," he added. With the agreement taking place to protect foreign investment and promote business, businesspersons from the Emirates will bring new technologies, managerial skills and market insight, which will benefit various sectors in Nepal. According to the chamber, around 400,000 Nepali workers are currently employed in the UAE which is the third largest trade partner of Nepal. In the meeting with Minister Saud, the chamber representatives also urged the government to sign a double tax exemption agreement with the UAE. The implementation of this agreement between Nepal and the UAE will benefit Nepalis living in the UAE and paying taxes, they opined. The tax exemption given to individuals with the same income in both countries will encourage Nepalis in the Emirates to invest in Nepal, they said. Other suggestions recommended by the chamber included formation of a friendship committee to strengthen bilateral relations between the two countries. This high-level committee would facilitate cultural exchange, tourism promotion and the development of close relations between people of both countries, according to the chamber. The chamber stressed the need for signing civil aviation agreement citing that the implementation of such an agreement will facilitate and enhance air connectivity and open up new opportunities for travel, trade and tourism. "This will improve flight frequency, more direct routes and accessibility between Nepal and the UAE, resulting in more convenience and efficiency for travellers and businesses," the chamber said. The delegation suggested starting 'Visit Nepal' campaign and taking initiatives to bring tourists from the UAE to Nepal. The chamber suggested signing labour agreement with the Emirates to ensure the protection of the rights and welfare of Nepalis and create clear guidelines and rules regarding working conditions, wages and benefits. Moreover, the chamber suggested an investment agreement, legal agreement and cyber security agreement between the two countries. In the meeting with the representatives of the chamber, Minister Saud said the previous agreements with the UAE will be reviewed and revised. He opined that there should be a detailed agreement acceptable to both countries. He mentioned that the chamber's study report can be a guide for the government and said economic diplomacy is the priority of the government. The delegation of the chamber included Vice-President Jeevan Kumar Bhandari, Mohan Bir Thapa, Chandra Tandan, Anoj Rimal, Binaya Upadhyay and others while Joint Secretary Tej Bahadur Chhetri participated on behalf of the Ministry of Foreign Affairs. READ ALSO:

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