The United Arab Emirates and the Philippines have signed a Comprehensive Economic Partnership Agreement (CEPA), marking Manila’s first-ever free trade agreement with a Middle Eastern country and a major milestone in bilateral economic relations.
The agreement was signed in Abu Dhabi in the presence of UAE President Sheikh Mohamed bin Zayed Al Nahyan and Philippine President Ferdinand Marcos Jr., underscoring the strategic importance both nations place on deepening trade and investment ties.
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Strengthening Bilateral Trade and Investment
Bilateral trade between the UAE and the Philippines reached approximately $1.83 billion in 2024, with the UAE accounting for nearly 39% of Philippine exports to the Middle East. Preliminary assessments indicate that the CEPA could boost Philippine exports to the UAE by over 9%, while also generating consumer savings and improving supply chain efficiencies.
The agreement aims to reduce or eliminate tariffs, simplify customs procedures, and enhance market access for businesses on both sides, creating a more predictable and transparent trade environment.
Broad-Based Economic Coverage
Unlike traditional trade agreements focused solely on goods, the UAE–Philippines CEPA adopts a comprehensive approach, covering:
- Trade in goods and services
- Investment promotion and protection
- Digital trade and innovation
- Support for micro, small, and medium enterprises (MSMEs)
- Intellectual property rights
- Government procurement
- Technical and economic cooperation
For service providers, the agreement ensures a stable and non-discriminatory operating environment, benefiting Filipino firms in sectors such as IT and business process management, healthcare, education, tourism, construction, and professional services.
Key Export Opportunities
Philippine exports expected to benefit from enhanced access to the UAE market include:
- Agricultural products such as bananas and pineapples
- Processed foods, including canned tuna
- Electronics and machinery
- High-value professional and technical services
For UAE businesses, the CEPA strengthens access to one of Southeast Asia’s fastest-growing economies, positioning the Philippines as a gateway to the wider ASEAN market.
Strategic Significance
The agreement aligns with the UAE’s broader CEPA strategy to diversify trade partnerships and reinforce its role as a global trade hub. For the Philippines, it complements existing free trade agreements with partners such as Japan, South Korea, the European Union, and ASEAN, while expanding its economic footprint in the Gulf region.
The deal also builds on strong people-to-people ties, supported by a large and skilled Filipino workforce in the UAE, further reinforcing long-term economic collaboration.
As global trade dynamics continue to evolve, the UAE–Philippines CEPA represents a forward-looking partnership focused on sustainable growth, investment-led development, and deeper economic integration between the Middle East and Southeast Asia.
For businesses, the agreement opens new opportunities across sectors, strengthens supply chains, and signals a shared commitment by both governments to foster an open, resilient, and future-ready trade environment.
