KATHMANDU: Nepal and Saudi Arabia are set to sign their first-ever labor agreement regarding the recruitment of Nepali workers on Sunday evening in Riyadh, the capital of Saudi Arabia.

Rajendra Singh Bhandari, Minister for Labor, Employment, and Social Security, is leading a three-member delegation to finalize the deal with his Saudi counterpart, Ahmad bin Sulaiman Al-Rajhi.

While this general agreement proceeds, a separate pact for domestic workers requires further homework.

The agreement, drafted over a decade, aligns with International Labour Organization (ILO) standards to ensure transparent recruitment and protect workers from human trafficking.

Key provisions include wage security under Saudi labor law, ending “double contracts,” controlling excessive recruitment costs, and preventing fraud by manpower agencies.

Currently, 400,000 Nepalis work in Saudi Arabia, primarily in construction and services. Over the last 10 years, 1,352,800 Nepalis, including 111,000 women, have worked there.

In fiscal year 2024/2025, 152,000 individuals received labor permits. However, safety remains a concern, as 684 Nepali workers died in Saudi Arabia over the past two fiscal years.