KATHMANDU, Jan 5: Nepal is set to finally sign a long-awaited bilateral labour agreement with Saudi Arabia, the country's largest destination for migrant workers. According to the Ministry of Labour, Employment and Social Security (MoLESS), the agreement will be signed in the last week of January.
MoLESS Spokesperson Pitambar Ghimire said the agreement will be inked on January 26 and 27 on the sidelines of the Global Labour Market Conference to be held in Saudi Arabia. Saudi Arabia has already sent an official invitation to Nepal for the conference.
Acting Saudi Ambassador to Nepal Abdul Nasser bin Hussein Al Harthi has personally invited Minister for Labour, Employment and Social Security Rajendra Singh Bhandari to attend the event.
“Saudi Arabia has seen a significant rise in the number of Nepali workers in recent years,” Spokesperson Ghimire said. “With high demand in construction, services, and other employment sectors, Saudi Arabia is increasingly becoming a primary destination for Nepali workers. A labour agreement is therefore essential to safeguard their rights.”
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Ghimire said the agreement would help address many long-standing problems faced by Nepali workers in Saudi Arabia. “The agreement will clearly define workers’ rights, including provisions related to insurance, social security, occupational safety, compensation, and the responsibilities of both governments,” he added.
Despite the absence of a formal labour agreement, Nepali workers have been migrating to Saudi Arabia for decades. A large number are employed in construction, security, cleaning, and other labor-intensive sectors. However, workers have long complained of harsh working conditions, including extreme heat, occupational diseases, workplace accidents, unpaid wages, lack of proper medical care and compensation, undefined working hours, and inadequate food and accommodation facilities.
Although Saudi Arabia has introduced insurance schemes for relief and compensation, most Nepali workers remain outside their coverage. Labour rights activists say the lack of clear provisions on 24-hour insurance, social security, and employer accountability has left workers vulnerable.
After more than a decade of negotiations, Nepal and Saudi Arabia are now close to finalizing the agreement. Nepal first proposed a bilateral labour agreement with Saudi Arabia before 2010, particularly advocating for a zero-cost recruitment system, in which employers bear all recruitment expenses. However, the Saudi side showed limited interest for years. In recent times, Saudi Arabia has insisted on including domestic workers under the same framework, but Nepal’s ban on sending domestic workers to Gulf countries since 2015 stalled the process.
“The fact is that Saudi Arabia has now become Nepal’s main labour destination,” said Tikaram Dhakal, Director at the Department of Foreign Employment (DoFE). “This will be the first labour agreement between Nepal and Saudi Arabia. Nepal has emphasized minimum wages, insurance, health services and social security during negotiations.”
Dhakal noted that Saudi Arabia is larger than Qatar, Kuwait, Bahrain and Oman, and that growing demand for foreign workers has drawn Nepali migrants there. He added that tighter labour policies in the UAE, along with simplified visa procedures, improved payment systems, and better job stability in Saudi Arabia, have contributed to the surge.
Before 2021, migrant workers in Saudi Arabia suffered severely under the Kafala system, which restricted job changes and returns to home countries without employer consent. While reforms now allow workers to change jobs or return home after completing two-year contracts, labour experts say problems persist. Employers often retain passports, wield disproportionate power, and can easily terminate workers, raising questions about whether the new agreement will effectively address these issues.
Data from the DoFE shows a steady rise in labour approvals for Saudi Arabia as migration to the UAE declines. In recent months alone, tens of thousands of Nepalis have received labour approval for Saudi Arabia.
Saudi Arabia’s growing labour demand is also driven by massive infrastructure projects ahead of the 2034 FIFA World Cup, including the construction of stadiums, hotels, roads, railways, and airports.
According to official records, 188,692 Nepalis received labour approval for Saudi Arabia in FY 2021/22, followed by 112,000 in FY 2022/23, 141,000 in FY 2023/24, and 152,000 in FY 2024/25, underscoring Saudi Arabia’s position as Nepal’s top foreign employment destination.
