Nepal and the State of Kuwait established diplomatic relations on February 25, 1972. Nepal established its Embassy in Kuwait on 21 March 2010. Kuwait’s Embassy in New Delhi is accredited to Nepal. Both Nepal and Kuwait have been enjoying friendly and cordial relationship. The exchange of visits at various levels has strengthened bilateral relations.

The two countries cooperate in the international and regional forums on matters of mutual interests. Nepal has always supported Kuwait’s sovereignty, independence and territorial integrity. Kuwait has been supporting Nepal by providing soft loans for projects, especially in the areas of hydropower generation and irrigation. A considerable number of Nepalese manpower is on employment in Kuwait, both at the company and domestic sectors, earning from the employment and also contributing to Kuwait’s development works.

The trade relationship between Nepal and Kuwait has been growing, though the volume is minimal at present. According to Trade and Export Promotion Centre, Nepal, the total export from Nepal to Kuwait in 2016 was worth NRs. 14.99 million (KD 44,396.42) while the import NRs. 29.66 million (KD 87,815.13) with a trade deficit of NRs. 14.67 million (KD 43,418.71) on Nepal’s side. Nepal exports to Kuwait carpets of wool or fine animal hair, silk, nickel matters, cotton materials, wool or fine animal hair, shawls, other textile materials, antique carpet articles, corrugated paper or paperboard, head scarves, tissues, black tea, turpentine products from wood and paper stationery etc. From Kuwait Nepal imports residues of petroleum oils or mineral materials, low and high density ethylene polymers, freezers, kitchen and other household articles, lubricating oils, dates, textile materials, ovens, cookers, cooking plates etc.

Kuwaiti citizens, especially the youth, have started visiting Nepal as tourists in an increasing number in recent times. Nepal can be a popular tourist destination for Kuwaiti citizens in time to come.

Though there is no direct investment in Nepal from Kuwait now, the potential for such investment exits. Nepal’s national priority sectors, such as hydropower, infrastructure, tourism, agriculture etc. can be suitable areas for Kuwaiti investment.

Nepal and Kuwait have concluded Air Services Agreement on 23 January 2006. However, direct air link between Nepal and Kuwait is yet to commence. Once such flights become operational, the movement of peoples of both the countries for employment, trade, tourism and so on is expected to be eased remarkably.

Nepal and Kuwait have signed a Memorandum of Understanding to establish a Joint Commission at the Level of the Foreign Ministers or their representatives of the two countries, which covers the entire gamut of bilateral relations. Other agreements are also in the pipelines covering the mutually beneficial areas.