Prime Minister Pushpa Kamal Dahal ‘Prachanda’ has said that Nepal required a huge investment in infrastructure, human resources, and technology to graduate from the LDC category by 2026.
Addressing the Nepal-Business Forum entitled ‘Investment Potential in Nepal: An Interaction with Dubai Business Communities’ on Thursday in the United Arab Emirates, the PM invited the vibrant business community of the UAE to invest in Nepal. PM Prachanda said we have many opportunities where the UAE and Nepal can forge partnerships for mutual interests and added that we have still not realized our full potential despite direct air connectivity and frequent flights. Sharing that Nepal has made remarkable progress in the fields of science and technology, including ICT, in recent days, the PM invited investors and the business community from the UAE to explore avenues to work together in these fields.
Saying that Nepal has decided to host the third investment summit in April 2024, PM Prachanda invited potential investors in areas of comparative and competitive advantage, especially in hydropower, tourism, agriculture, and ICT sectors. He said, ‘We will come up with the key policy reforms and incentives that will be instrumental in attracting private investment. I take this opportunity to extend an invitation to the distinguished investors and business community in the UAE for their valuable participation in the event.’
In his speech, the PM said that the UAE is the second-largest economy in the Gulf region and an emerging global economic power. Nepal considers that strengthened economic ties between the two countries will provide enormous opportunities for mutual benefit. ‘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 attain middle-income country status as well as achieve the SDGs by 2030. For this, we require huge investments in infrastructure, human resources, and technology,’the PM urged.
Asking the business community from the UAE to invest in Nepal, the PM shared that 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.
‘We have enacted the Foreign Investment and Technology Transfer Act, the Public-Private Partnership and Investment Act, the Industrial Enterprises Act, and the Special Economic Zones Act, among others. These laws have been reviewed regularly to promote and accelerate investments in Nepal,’ according to the PM.
On the occasion, PM Prachanda said we have a one-stop service at the Department of Industries for procedural simplification for investment, and the Investment Board of Nepal is committed to promoting large investments in sectors prioritized by the government. The PM reiterated that Nepal stands ready to protect and promote the interests of investors. Likewise, the PM said that Nepal is in the process of concluding a bilateral investment agreement with many countries, including the UAE, to address the interests of investors.
PM Prachanda assured the business community in the UAE, stating that Nepal’s policies regarding repatriation of capital and income from investments are liberal, and the laws and rules pertaining to land acquisition, company registration, and infrastructure development have been simplified and relaxed. ‘It has the lowest corporate tax rate in the entire region. With all these initiatives, the business environment in Nepal has been improving significantly, and I invite investors from the UAE to explore the boundless opportunities,’ he added.
On a separate note, PM Prachanda said Nepal highly appreciates the government of the UAE for being a kind host for Nepali migrant workers. He stated that the knowledge, skills, and capital acquired by the migrant workers in the UAE can be capitalized on in the socio-economic transformation of the home country. ‘Moreover, the returnee Nepali migrant workers are yet another source that can be effectively utilized in future investment projects by the UAE in Nepal.’
‘Investment in the training of migrant workers to enhance their knowledge and skills for the host country will further add value to their productivity. For this, the bilateral labor agreement between the two countries has been instrumental. These migrant workers are, in the true sense, goodwill ambassadors and vibrant bridges between the two countries and the people,’ the PM viewed.
On the occasion, the PM said both Nepal and the UAE share common views on many global and regional issues, and the two countries have been cooperating with each other in many forums. As shared by the Ministry of Foreign Affairs, Under Secretary of the Ministry of Economy of the UAE Abdullah Ahmed Mohammed Al Saleh, President of the Dubai Chamber of Commerce Mohammad Ali bin Rashed Lootah, Ambassador of the UAE to Nepal Abdullah Al Shamshi, President of the Federation of Nepalese Chamber of Commerce and Industries Chandra Prasad Dhakal, and representatives from the business community were present at the Nepal-Dubai Business Forum. According to the Ministry, the Nepal-Dubai Business Forum was organized in Abu Dhabi by FNCCI, Dubai Chambers, and the Embassy of Nepal in Abu Dhabi.