Policy Complexities in Nepal Hinder Nepali Goods from Securing Expected Market in UAE
Nepali entrepreneurs and businesspeople based in the UAE have reported challenges regarding the quality, packaging, labeling, and supply continuity of Nepali products. They have suggested the need for customs policy reform in Nepal, concessions on air cargo charges, and bilateral legal agreements. Ambassador Tej Bahadur Kshetri highlighted extensive potential for trade, investment, energy, agriculture, and tourism cooperation between Nepal and the UAE. Kathmandu, 18 May.
Entrepreneurs and business operators of Nepalese origin residing in the United Arab Emirates expressed that due to issues related to product quality, packaging, labeling, supply reliability, and government policy complexities, Nepali products have not secured a significant share in the vast UAE market. During the interactive session titled “Diaspora Dynamics: Bridging the Borders from Migration to Markets,” organized by the Nepali Embassy in Abu Dhabi, participants emphasized the need for structural reforms to expand Nepali product exports.
The event featured Nepali entrepreneurs, economists, and business researchers from New York University Abu Dhabi, all involved in trade, production, supply, and investment in the UAE. According to the embassy, the discussions covered experiences, challenges, and opportunities faced by Nepali diaspora entrepreneurs as they seek to establish themselves in the UAE market. Counselor and Deputy Head of Mission Ranjita Dahal noted that Nepali entrepreneurs importing and selling primarily agricultural products in the UAE reported problems with product quality, packaging, labeling, and consistent supply.
“Our products find it difficult to compete in the market due to the lack of international standard quality, attractive packaging, and proper labeling,” Dahal stated. “Even after gaining initial recognition, business expansion is hindered by the inability to maintain supply at a large scale.” Business representatives pointed out delays in quarantine procedures and transportation for vegetables and other agricultural products sent from Nepal, resulting in deterioration and spoilage by the time they reach the market.
While halal certification and Arabic labeling are mandatory for selling food products in the UAE and Gulf countries, many Nepali exports lack these features, causing them to miss easy access to Muslim consumer markets. Businesses also reported that many Nepali operators in the UAE face challenges due to insufficient knowledge about the local tax system, value-added tax, and other legal regulations.
They appealed to the embassy to organize programs on financial literacy and legal awareness tailored for entrepreneurs. Participants recommended timely improvements in Nepal’s customs policies, concessions on air cargo fees, establishment of innovation centers at the provincial level, creation of a business-friendly environment, and removal of export barriers through bilateral legal agreements. Emphasizing the need for government attention, they urged for capacity enhancement of Nepali workers and assurance of agricultural product quality. With approximately 600,000 to 700,000 Nepalis working in the UAE, the potential market for Nepali products appears promising. The participants believed that addressing these issues would facilitate smoother business operations in the UAE.
In the program, Ambassador Tej Bahadur Kshetri mentioned the extensive prospects for cooperation between Nepal and the UAE in trade, investment, energy, agriculture, and tourism. He noted that efforts are underway to finalize necessary understandings and agreements between the two countries. The ambassador reaffirmed the embassy’s commitment to facilitating policy and legal reforms in coordination with the Nepalese government to promote economic and trade relations.