The long-awaited free trade agreement (FTA) between the Philippines and the United Arab Emirates (UAE) was signed on Tuesday, its significance underscored by the presence of President Ferdinand Marcos Jr.

Mr. Marcos and his counterpart, UAE President Sheikh Mohamed bin Zayed Al Nahyan, witnessed the signing between Manila and Abu Dhabi on the sidelines of the Abu Dhabi Sustainability Week (ADSW) 2026 Summit held at the Abu Dhabi National Exhibition Center.

The Comprehensive Economic Partnership Agreement (CEPA) is the country’s first free trade agreement with a Middle Eastern country.

The CEPA aims to reduce tariffs, enhance market access for goods and services, increase investment flows, and create new opportunities for Filipino professionals and service providers in the Emirates.

Strategic sectors such as digital trade, micro, small and medium enterprises (MSME), sustainable development, intellectual property, competition and consumer protection, government procurement, and technical cooperation are included in the agreement.

In the countryside, Philippine exports such as bananas, pineapples, canned tuna, electronics, machinery, and other high-demand products are expected to benefit from the CEPA.

Before the signing, preliminary studies indicated the CEPA could boost Philippine exports to the UAE by 9.13 percent. It is also seen to strengthen overall trade linkages with the Gulf region and to generate consumer savings.

In 2024, bilateral trade between the Philippines and the UAE reached nearly $1.83 billion, ranking the UAE as the 18th-largest trading partner, accounting for almost 39 percent of Philippine exports to the Middle East.

Prime benefit for MSMEs

Filipinos will also benefit from CEPA, as it ensures a stable, non-discriminatory environment for Filipino firms, including MSMEs, and for sectors such as IT-BPM, tourism, healthcare, education, construction, and professional services.

Given the FTAs with Japan, South Korea, Europe and the Association of Southeast Asian Nations, as well as other trading partners, including the Regional Comprehensive Economic Partnership Agreement, the CEPA with the UAE is expected to complement these agreements for the country’s benefit.

It is also expected to support existing Philippines-UAE agreements, including the Investment Promotion and Protection Agreement, as well as cooperation in trade, energy, logistics, innovation and tourism.

Marcos arrived in Abu Dhabi at 11:09 p.m., or past 4 a.m. Tuesday, Manila time.

First Lady Liza Araneta-Marcos, Foreign Affairs Secretary Ma. Theresa Lazaro, Finance Acting Secretary Frederick Go, and Special Envoy to the UAE for Trade and Investment Kathryna Yu-Pimentel were with the President.

Marcos also briefly met with President Sheikh Mohamed bin Zayed Al Nahyan, marking their second engagement since November 2024.