KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepal’s economy and labor landscape are witnessing notable shifts shaped by both domestic development efforts and global trends. While the country issued 500 work permits to mostly Chinese experts involved in major infrastructure projects, reflecting continued foreign engagement in national development, outbound labor migration remains strong, particularly to the UAE despite visa restrictions.
At the same time, Saudi Arabia’s abolition of the 70-year-old Kafala system and introduction of new labor laws mark a significant improvement in migrant worker rights, directly impacting millions of Nepalis abroad.
Domestically, investment in irrigation and landslide control projects signals a focus on rural infrastructure, while record passenger traffic through Tribhuvan International Airport highlights vibrant mobility during the festival season. However, the global plunge in gold prices has dampened festive spending, underscoring Nepal’s sensitivity to international market fluctuations.
500 foreign nationals receive work permits in Nepal
In the first quarter of fiscal year 2025/26, 500 foreign nationals were granted new or renewed work permits in Nepal. Most are Chinese technical experts working on large infrastructure projects, including hydropower, road, and airport construction. Last year, 1,667 foreigners renewed permits, while 165 received new ones. The department also monitored five companies employing foreign workers.
Global gold prices plunge, dampening Nepali festival sales
Gold prices recorded their steepest fall in 12 years, dropping nearly 6 percent to around USD 4,000 per ounce. In Nepal, gold declined by more than Rs 3,800 per tola this week, slowing Tihar and Chhath sales. Traders said buyers were cautious despite the festive period. The decline is linked to a stronger U.S. dollar and optimism over U.S.-China trade talks. Analysts expect short-term volatility before a potential rebound next year.
Global gold market shaken by sharp price drop
Gold prices fell by over 5 percent on Wednesday, sliding from USD 4,381 to about USD 4,080 per ounce and erasing recent gains. Analysts attribute the decline to profit-taking, easing geopolitical tensions, and a stronger U.S. dollar. Experts say the USD 4,000 mark is a crucial support level—if breached, prices could fall to around USD 3,850.
Tribhuvan airport serves over 760,000 passengers in October
Tribhuvan International Airport handled 761,414 passengers from mid-September to mid-October 2025, making it one of the busiest months due to festive travel. Of the total, 323,012 were domestic travelers, while 438,406 flew internationally. The airport recorded 8,417 flights and landings, with 31 international airlines operating. Officials said the facility operated at near full capacity throughout the month.
Irrigation projects worth Rs 157.5 million launched in Tanahun
The Irrigation and Water Resources Management Project, Bhanu Tanahun, has initiated projects totaling Rs 157.5 million for irrigation and landslide control this fiscal year. Each of the five major projects has received Rs 30 million, including large lift irrigation in Devghat and Shishaghat, slope protection in Shuklagandaki, and landslide control in Galeshwor. The office oversees works in Tanahun, Lamjung, Manang, and Gorkha districts.
Saudi Arabia ends 70-year-old kafala system
Saudi Arabia has officially abolished its 70-year-old Kafala (sponsorship) system, a reform first announced in June 2025. The change benefits more than 13 million migrant workers, mainly from India, Bangladesh, Nepal, and the Philippines. Workers can now change jobs and leave the country without employer consent. Human rights groups had condemned the system as exploitative, while Saudi authorities said the reform aligns with Vision 2030.
Nepali labor migration to UAE rises despite visa curbs
Despite tighter visa rules, the number of Nepalis heading to the UAE continues to grow. Last fiscal year, 274,590 workers obtained labor permits—double the previous year’s total. Around 90 percent traveled through institutional channels. Employers report more visa rejections following recent incidents in Nepal, though Abu Dhabi has yet to issue an official statement. The UAE currently hosts over 800,000 Nepalis.
Nepal records rise in licensed labor supply companies
The Department of Labor and Occupational Safety reported 437 registered labor supply companies in Nepal for FY 2025/26. These firms, either newly licensed or renewed, mainly provide security, household, and support staff. The department warned employers not to hire unregistered agencies and has begun imposing fines on violators. Officials said the increase reflects stronger enforcement measures.
New Saudi labor rules expand worker rights
Following the abolition of the Kafala system, Saudi Arabia introduced new labor laws that give migrant workers greater freedom to change employers, travel, and seek legal aid without sponsor approval. Employment contracts will now be mandatory and written, specifying wages, benefits, and duration. The move supports Crown Prince Mohammed bin Salman’s Vision 2030, aimed at improving labor rights and attracting foreign investment.
UAE tightens visit visa rules for families and friends
The United Arab Emirates has introduced new requirements for sponsoring family and friends under visit visas. Sponsors must now meet higher income thresholds, with monthly salaries ranging from AED 4,000 to AED 15,000, depending on the relationship. Proof of kinship and valid travel documents are also required. The move aims to improve transparency in visa processing after recent regulatory changes.
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