The Philippines expects to gain greater access to the United Arab Emirates (UAE) sovereign wealth fund with the signing next month of a Comprehensive Economic Partnership Agreement (CEPA) between the two countries, Trade Undersecretary Ceferino Rodolfo said on Tuesday.
Rodolfo said the CEPA will be the first free trade agreement signed between the Philippines and a member of the Gulf Cooperation Council (GCC).
CEPA will also provide the framework for increased trade and investments between the Philippines and UAE, and a link to other GCC countries and onwards to Africa, Rodolfo said on the sidelines of the “Doing Business with the Philippines” forum in Taguig City.
Rodolfo was giving more details about the statement made by Philippine special envoy to the UAE Ma. Anna Kathryna Pimentel in her speech at the forum that the CEPA will be signed next month.
While the Philippines can always tap the UAE’s sovereign fund through private equities globally even without CEPA, the UAE puts high importance on CEPA also as a way of realizing the potential of good investment in a country, Rodolfo said.
Rodolfo was referring to the Emirates Investment Authority (EIA), whose website says is a custodian of the UAE’s Federal assets, mandated to strategically invest funds allocated
by its government to contribute to the country’s future prosperity.
EIA’s website says it has a “highly diversified investment portfolio, spread across various investments and instruments,” without mentioning any amount.
According to the Global SWF website, about 40 percent of EIA’s portfolio is comprised of stakes in the two telecommunications providers in the Emirates, Etisalat or e& and du. EIA also holds interests in federal assets such as Emirates Post, Emirates Transport, and DIB-ADIB, the UAE’s largest Islamic bank group.
The UAE currently has CEPAs with nine countries, including two from ASEAN, Indonesia and Cambodia.
Rodolfo said that ahead of the CEPA signing, private sector companies from the Philippines and the UAE have been working on commercial deals in renewable energy, infrastructure, logistics, digital infrastructure and high-tech agriculture.
In the same forum, Philippine Chamber of Commerce and Industry (PCCI) President Enunina Mangio said, “we are optimistic that the proposed Philippines-UAE FTA will unlock wider market access, enhanced export opportunities, and greater investment flows for both economies.”
At the forum, PCCI and the Dubai Chamber of Commerce signed a Memorandum of Understanding (MOU) “creating concrete pathways for trade collaboration, investment opportunities, and joint ventures. It serves as our strategic framework for a deeper economic partnership.”
“Through PCCI’s extensive network of over 35,000 enterprises countrywide, the local chamber is positioned to connect businesses across priority sectors such as renewable energy, innovation, agribusiness, infrastructure, healthcare, and technology startups,” Mangio said.
Citing UN ComTrade data, Mangio said the Philippines’ leading exports to the UAE include electrical equipment, machinery, food products, and steel. At the same time, UAE supplies the Philippines with mineral fuels, plastics, vehicles, and metals.
“The UAE presents promising opportunities for Filipino products, particularly halal goods, tropical fruits, garments, and premium consumer items,” Mangio added.
Salem Al Shamsi, vice president of International Relations at Dubai Chamber, said CEPA will open new doors for trade between the UAE and the Philippines.
In his speech at the forum, Al Shamsi said the MOU with PCCI “embodies our shared vision to enhance collaboration, simplify trade processes, and boost investment flows.”
Al Shamsi said that in 2024, non-oil trade between Dubai and the Philippines reached $837 million.
In 2023, the total trade between the Philippines and the UAE reached $1.88 billion, while exports and imports amounted to $ 341.97 million and $1.54 billion, respectively.
He said areas ripe for collaboration include tourism, agriculture, telecommunications, logistics, and healthcare.
Al Shamsi said the visiting delegation from Dubai featured representatives from 20 private sector companies, spanning a diverse range of sectors including food and beverages, agriculture, automotive, construction, electronics, hospitality, human resources and services.
Dubai Chamber of Commerce has identified several high-potential export sectors from Dubai to the Philippines, including leather, car parts, fertilizers, flat-rolled iron/steel, organic chemicals, and flooring materials. The chamber also highlighted promising sectors for Dubai-based companies to invest in within the Philippines, including tourism, agri-industries, telecommunications, logistics, and healthcare.
