Nepal and Saudi Arabia Likely to Sign Labour Agreement Soon

Following Cabinet approval, Nepal and Saudi Arabia are expected to sign a labour agreement soon.

The Gulf nation has long been a major destination for Nepali migrant workers, with an estimated 400,000 currently employed there. In the fiscal year 2024/25, which ended in mid-July, Saudi Arabia ranked second only to the UAE among top overseas destinations for Nepali workers.

According to the Department of Foreign Employment, 77,247 Nepalis received new labour permits for Saudi Arabia in 2024/25, marking a 5.68% increase from the previous year. Meanwhile, 75,310 workers renewed their permits to work in the country, a 10.09% year-on-year rise.

Minister for Labour, Employment and Social Security Sharat Singh Bhandari said the future labour agreements will prioritise the rights and welfare of Nepali migrant workers. Labour Secretary Dr Krishna Hari Pushkar added that the ministry was reviewing previous agreements and maintains a zero-tolerance policy toward labour exploitation and human rights violations in countries where Nepali workers are employed.

Bhuwan Singh Gurung, President of the Nepal Association of Foreign Employment Agencies (NAFEA), welcomed the move and urged the government to sign similar agreements with other countries.

The agreement comes as Saudi Arabia prepares to host the 2034 FIFA World Cup. After global scrutiny of labour conditions during the preparations for 2022 FIFA World Cup in Qatar, Saudi authorities have reportedly placed greater emphasis on workers’ rights and services.

While Nepali workers are employed in over 100 countries, Nepal has formal labour agreements with only about a dozen.