With $580.5-million investment commitments secured, the Philippines’ participation at the Expo 2020 Dubai over the weekend was highlighted by the signing of two important trade and investment documents with the government of the United Arab Emirates (UAE).
These are the Philippines—UAE Investment Promotion and Protection Agreement and the launch of negotiations for a future Comprehensive Economic Partnership Agreement (CEPA) between the Philippines and UAE.
In his message at the Philippine National Day of the expo on Friday, Lopez reported several UAE companies have signified interest to explore business opportunities in the Philippines by signing letters of intent and memoranda of understanding for an estimated investment of $580.5 million (P29 billion).
Lopez said these would generate 3,920 employment opportunities in the Philippines.
Lopez said the signing of the comprehensive IPPA gives more protection of UAE investments into the Philippines and vice versa. It accords national treatment, most-favored nation treatment, freedom from expropriation, transfers, access to investor-state dispute settlement mechanism, among others.
Lopez said this is a time for UAE companies to invest in the Philippines following the liberalization of public services, retail trade and the foreign investment as well as the improvement in the tax and incentives regime of the country.
He urged the Joint Committee on Investment established under the agreement be called to start investment initiatives.
CEPA once signed will strengthen trade, enhance investment flows, remove unnecessary barriers to trade, and create new business opportunities.
“These bilateral agreements are both important and significant because they denote a commitment from both countries to work together to deepen cooperation and stimulate business initiatives on the basis of mutual benefit,” Lopez said.
The IPPA aims to promote and facilitate UAE investments to the Philippines in key sectors of interest such as agribusiness, energy efficiency technologies and renewable energy, infrastructure, information technology-business process management, oil and gas, and tourism.
Lopez said the Philippines can also be a second home for UAE-based startup firms involved in advanced technology, with a capital requirement of only $100,000 and only 15 employees from the local workforce.
Total trade between the Philippines and Dubai countries rose by 34.7 percent with a value of $951 million in 2021, from $705 million in 2020. Philippine exports stood at $245.1 million while imports doubled to $705.9 million.
The UAE ranked as the 17th top source of approved investments in 2019, valued at $13.24 million.
