Both business chambers from the Philippines and the United Arab Emirates, particularly those from Dubai, are hoping that the Free Trade Agreement (FTA) or the comprehensive economic partnership agreement (CEPA) between the two countries will be signed in June, the country’s first FTA with a Middle Eastern country.

Though no exact date has been provided, Special Envoy of the President to the UAE for Trade and Investments Kathryna Yu-Pimentel revealed in her speech at the ‘New Horizons’ Doing Business with the Philippines, that the FTA of UAE and the Philippines will be signed next month.

Pimentel is banking on the developments in the two countries, in which she said bilateral non-oil trade between the Philippines and UAE reached $1.08 billion in 2023; UAE being the 17th largest trading partner and the top export market among the Gulf Cooperation Council (GCC) states. More than $129.4 million in investments were recorded from 2019 to 2023 from the emirates.

“This upward trend will only continue, especially with the anticipated signing of the CEPA between the Philippines and the UAE, ‘inshallah’. This will be historic in the sense that it will be our first free trade agreement with a Middle Eastern country," she said.

For his part, Salem Al Shamsi, Vice President of International Relations at Dubai Chambers, said the signing of the CEPA, if it pushes through this June, will be beneficial for the UAE and the Philippines.

“This bilateral agreement is promising. We've seen it increase the bilateral trade and flow between other markets that the UAE has already signed. So, hopefully by next month - as was announced today (27 May) - by signing it, it's going to open more doors for Dubai companies to have a look at what the business community and the market in the Philippines offers, and also for Philippine companies to join us in Dubai and take advantage of what we have built in the past,” said Al Shamsi in a press conference.

He also committed his organization to helping the Philippine business community expand their network, taking Dubai as a platform.

In a separate chance interview, Trade Undersecretary Perry Rodolfo said the good thing with the interaction on CEPA is that even before the agreement has been signed and has been enforced, the private sector from both countries are already actively working on deals, which according to him, is very important.

“We are looking for UAE investment in renewable energy, logistics, digital infrastructure, and high-tech agriculture. The access we can get through Dubai is very important to the other GCC countries, and towards Africa, as it can be a good connector to Africa,” said Rodolfo.  

To recall, the UAE and the Philippines jointly announced the FTA negotiations in February 2022, covering various areas of cooperation such as goods and services, investments, small and medium enterprises, digitalization, customs, governance, and sustainability, among others.

Emirati investors bullish on investing

Meanwhile, Dubai Chamber’s Al Shamsi said that with the Philippines’ dynamic economy, skilled workforce, and strategic location, it remains a key market in Southeast Asia and offers a compelling environment for businesses and investors from Dubai.

“During 2024, non-oil trade between Dubai and the Philippines reached a value of $ 837 million, highlighting the strong potential for growth across diverse sectors. Tourism, agriculture, telecommunications, logistics, and healthcare are just some of the areas ripe for collaboration. Our delegation is eager to establish new connections and contribute to shared economic progress,” he said.

He said Dubai’s position as a global hub for trade and investment presents a strong proposition for Philippine companies.(RAFFY AYENG)