NEPAL-BAHRAIN RELATIONS

General overview

• Nepal and the Kingdom of Bahrain established diplomatic relations on 13 January 1977. The relations have always remained amicable and cordial driven by mutual trust, respect, understanding and cooperation.
• The Government of Nepal opened its Embassy in Manama on 1 September 2013. The Embassy of the Kingdom of Bahrain in New Delhi is concurrently accredited to Nepal.

Diplomatic and political development

• Political dialogue and communication have remained instrumental in allowing the leadership of both the countries to better understand the areas of mutual benefit for both sides. Exchange of views on bilateral relations existing between the two countries and the ways and means to diversify them often surface during the bilateral meetings at various levels which is the manifestation of the commitment of both the countries to take forward the bilateral relations to a newer height. Growing people-to-people relations due to the presence of a large number of Nepali workers in Bahrain and the number of tourists and businessmen traveling to Nepal have been constantly contributing to strengthen our bilateral relations. 

• There exist ample potentials for cooperation between the two countries in the areas of tourism, trade and investment, labour migration as well as in further expanding employment opportunities for Nepali nationals in Bahrain.

• Hon. Foreign Minister Dr. Narayan Khadka and His Excellency Dr. Abdullatif bin Rashid Al Zayani, Foreign Minister of the Kingdom of Bahrain, had a cordial meeting on the sidelines of Antalya Diplomacy Forum on 12 March 2022. Request for opening Bahraini Embassy in Kathmandu and the need for expanding economic cooperation were shared by Minister Khadka. H.E. Zayani suggested that Bahrain may start with Honorary Consul in Nepal and build on it.

1. High-level visits from Nepal

1. Rt. Hon’ble Mr. Devraj Ghimire, Speaker of the Federal House of Representatives of Nepal visited the Kingdom of Bahrain on 11-15 March 2023 to participate in the 146^th Assembly of the Inter-Parliamentary Union which was held with the theme of “Promoting peaceful coexistence and inclusive societies: Fighting intolerance.”
2. Hon. Mr. Matrika Prasad Yadav, Minister for Industry, Commerce and Supplies, and Trade Secretary Ms. Yam Kumari Khatiwada visited Bahrain on 15 April 2019 to participate in “Start Up Nations Ministerial Conference” organized by the Government of Bahrain.
3. Late King Birendra and Queen Aishwarya visited Bahrain in 1979.
4. The then Crown Prince Dipendra also visited Bahrain in 1997.
5. Foreign Minister Hon. Dr Narayan Khadka extended invitation to Foreign Minister Mr. Zayani to visit Nepal in the sideline of the Antalya Diplomacy Forum 2022. Minister Zayani shared that he would certainly do so during his tour in the region.

2. High-level Visits from Bahrain side

1. Dr. Majeed Bin Muhsin Al Alawi, Labour Minister of the Government of the Kingdom of Bahrain, made a trip to Nepal in order to conclude Labour Agreement between the two countries on 29 April 2008.
2. Prince of Bahrain His Highness Nasser bin Hamad Al-Khalifa, who is also the Patron of Royal Charity Organization, visited Nepal immediately after the devastating earthquake of 2015 with the supply of relief materials.
3. The expedition team of Bahrain Royal Guards led by Sheikh Mohamed Hamad Mohamed Alkhalifa, a member of the Royal family of Bahrain, visited Nepal in 2020 and 2021. Sheikh Mohammed bin Hamad Mohamed Alkhalifa ascended Mt. Lobuche on 2077/6/17 and Mt. Manaslu on 2077/6/29. Later, a team of Bahrain Royal Guards including Sheikh Mohamed Hamad Mohamed Alkhalifa also ascended to Mt. Everest on 11 May 2021.

Labour Migration and Foreign Employment in Bahrain

• Bahrain is a favored destination for Nepali migrant workers. Around 30,000 Nepali nationals are currently working in Bahrain in various occupation groups such as service workers, production and related workers, as well as other sectors like Royal Court, Royal Families, Bahrain National Guard, and domestic helpers.
• To offset the impact of Covid-19 on expat workers, Bahrain government’s provision to grant a nine-month amnesty for thousands of undocumented foreign workers to either legalize their stay or leave the country came as a relief to Nepali workers as well.
• An eight-member joint technical committee (JTC) was formed in 2017 under the Memorandum of Understanding (MoU) in the areas of Labour and Occupational Training (2008) and entrusted to discuss and address the entire gamut of labour issues of both sides that may come up from time to time.
• Bahrain is engaged in diversifying its economy away from its dependence on oil and reducing its reliance on large migrant workforce. The introduction of the Bahrainization target seeking to employ local Bahraini nationals as much as possible reaffirms the same. At present, the Government of the Kingdom of Bahrain faces the challenge of enhancing both technical and vocational qualifications and innovative private-sector careers.
• Nepal has to prioritize on supplying semi-skilled/skilled and professional category of human resources which demands devising a strategic plan to provide professionals, especially from management, social science and technology backgrounds to pursue white-collar jobs mainly in areas of construction, services, security and hospitality.

Trade

Nepal’s Trade Figures in FY 2022/23 (2079/80)

Amount in ‘000’

The trade between Nepal and Bahrain remains quite insignificant. The major export articles are textile articles, carpet, and other textile floor coverings, printed books, newspaper etc. The import articles consist of aluminum articles, fuel oil, petroleum, tubes, copper articles, dairy products and confectionary items, etc. Nepal should, therefore, explore the possibilities of expanding trade and reduce trade deficit by enhancing exports to Bahrain and, to this end, mutual exchange and interaction of business delegations from both countries are pertinent.

Investment

There is a very minimum amount of FDI inflow from Bahrain in Nepal. However, the Government of Nepal is working towards timely adjustment in various rules, regulations, policies, procedures and laws relating to foreign investment and FDI. There are no legal and practical barriers to make and repatriate investment and profits arising there from. With improvement in business climate, reflected in terms of indicators such as the doing business ranking by the World Bank Group, Nepal can be a destination of choice to investors from Bahrain. Lately, MoFA, Nepal has shared with all Nepali Missions including EoN, Manama the model text of the Bilateral Investment Agreement (BIA) approved by the Government of Nepal for proposing it to the host Government.

Tourism

• After the successful ascent of the World’s highest peak, Mt. Everest by a group from Bahrain Royal Guard led by Sheikh Mohamed, the interest for visit to Nepal has been on the rise.
•  Nepal could provide best alternative ambience for Bahraini tourists to spend their holidays away from the bustle of modernity. There is indeed a great potential for attracting Bahraini tourists through dissemination and publicity of ecological diversity, natural beauty, vibrant culture and hospitality of Nepal.
• There is a need of collaboration between Nepal Tourism Board and Bahrain Tourism and Exhibition Authority in promoting Culture and Tourism activities in both the countries.

Bilateral Agreements/MOU

• MOU between the Financial Intelligence National Centre of the Kingdom of Bahrain (FINC) and the Financial Intelligence Unit of Nepal concerning cooperation in the exchange of financial intelligence related to money laundering associated predicated offences and terrorist financing.

Nepal-Bahrain Parliamentary Friendship Group

A 7-member Nepal-Bahrain Parliamentary Friendship Group has been formed, with members from both houses of the Parliament in 2024. Hon. Krishna Bahadur Rokaya is current convener of the Friendship Group. Likewise, a 5-member Bahrain-Nepal Friendship Committee was formed in the Council of Representatives of the Kingdom of Bahrain in 2019.

Economic, trade and development cooperation

• The prospect of employment in Bahrain is ever growing following the massive construction of infrastructures and real estates and their modernization in Bahrain.
• There exist good scope and opportunity for further promoting and widening of bilateral cooperation to the mutual benefit of both countries in the fields of human resources, trade, investment and tourism.
• The Bahrain Sovereign Wealth Fund, run by Sovereign Wealth Fund Institute and worth $18 Billion in 2022, actively seeks investment opportunities locally, regionally and internationally. Nepal can approach to the Fund for mobilizing investment in Nepal in sectors of priority to both countries.

Cooperation in multilateral forums

Nepal and Bahrain have been working together in various international forums such as the United Nations, the Non-Aligned Movement (NAM), G77 among others.

Isa Award for Service to Humanity

The Government of the Kingdom of Bahrain awarded 5^th Isa Award for Service to Humanity in 2023 to Nepali ophthalmologist Dr. Sanduk Ruit for his outstanding contribution in the treatment of cataracts not only to Nepali nationals but also the people of different parts of the world through his own-built intraocular lens.

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Ministry of Foreign Affairs, Nepal

Central Asia, West Asia and Africa Division

Kathmandu, March 2025