The Philippines is set to clinch its first free trade agreement with a Middle Eastern nation, with the signing of a Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates next week, a move expected to widen Manila’s commercial footprint in the Gulf.
Presidential Communications Office Undersecretary Claire Castro said on Thursday, January 8, that President Ferdinand Marcos Jr. will witness the signing of the CEPA during his working visit to the UAE on the sidelines of Abu Dhabi Sustainability Week.
The agreement will mark the Philippines’ first FTA with a Middle Eastern country and its most ambitious trade pact with the region to date.
Alongside the CEPA, Marcos will also oversee the signing of a memorandum of understanding on defense cooperation, underscoring the expanding scope of bilateral ties beyond trade and investment.
The UAE is currently the Philippines’ 18th largest trading partner and its top export destination within the Gulf Cooperation Council.
In 2023, total bilateral trade reached USD1.88 billion, with Philippine exports valued at USD341.97 million and imports at USD1.54 billion, highlighting both the scale of existing ties and room for growth.
The Gulf state is home to one of the largest Filipino communities in the Middle East and hosts a growing number of Filipino brands, giving Philippine exporters a built-in market and familiarity advantage.
According to the International Trade Centre, unrealized export potential for Philippine food and agri-related products in the UAE stands at USD56.40 million, while personal care products carry an additional USD1.31 million in untapped demand.
Key Philippine exports to the UAE include electronic input or output units, static converters, aircraft parts, pineapples, and bananas.
Beyond trade flows, the CEPA is expected to unlock higher levels of investment into the Philippines, including potential inflows from UAE sovereign wealth funds.
President Marcos is scheduled to depart on January 12 to attend Abu Dhabi Sustainability Week, where global leaders will tackle issues spanning energy, water, finance, food security, and the environment—sectors closely aligned with the pact’s long-term promise.
