Abu dhabi: Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, announced that the Comprehensive Economic Partnership Agreement (CEPA) with the Philippines aligns with the UAE's strategic goal of establishing robust trade and investment partnerships with key global growth regions, particularly within the Association of Southeast Asian Nations (ASEAN), the world's fourth-largest economic bloc.
According to Emirates News Agency, Al Zeyoudi emphasized that the agreement with the Philippines marks the fourth pact in the UAE's CEPA program with ASEAN countries, following agreements with Cambodia, Indonesia, and Viet Nam. This move signifies the UAE's commitment to strengthening its economic ties with ASEAN, a vital economic bloc.
Al Zeyoudi highlighted the significance of the agreement with the Philippines, given the enduring bilateral economic relations and the Philippines' strategic role as a major logistics and trade hub in Asia. The Philippines, a member of the Regional Comprehensive Economic Partnership, the world's largest free trade agreement, officially joined in June 2023, further enhancing its pivotal position.
The minister noted that the Philippines is one of the fastest-growing economies in ASEAN, with a projected growth rate of 5.6 percent in 2024, ranking as the second-fastest in the region. Its nominal gross domestic product stands at approximately US$471.8 billion. Furthermore, the country's ambitious economic expansion plan includes 197 major infrastructure projects valued at around US$155 billion, encompassing key sectors such as digital connectivity, health, energy, agriculture, and water security.
Al Zeyoudi affirmed that the UAE and the Philippines share a common economic vision centered on building resilient, open, and diversified economies committed to free trade principles and sustainable growth. He pointed out the ongoing momentum in bilateral economic relations, with non-oil trade between the two countries reaching approximately US$940 million in 2024 and exceeding US$853.7 million in the first nine months of 2025, reflecting annual growth of 22.4 percent.
He stated that the UAE is the largest market for Philippine exports in the Arab and African regions and the Philippines' seventeenth-largest trading partner globally. The UAE hosts the second-largest Filipino community in the Gulf, with over 700,000 Filipinos residing in the country.
On the investment front, Al Zeyoudi mentioned several significant projects, including DP World's investments in the Port of South Manila, Batangas Port, and the Tanza Container Terminal. Additionally, plans are underway for investment up to $440 million to develop logistics and industrial projects in the Philippines.
He also noted that Abu Dhabi Future Energy Company, Masdar, signed a US$15 billion agreement with the Philippine government in 2024 to develop solar, wind, and energy storage projects, aiming to provide one gigawatt of clean energy by 2030.
The agreement is expected to add US$2.4 billion to the UAE's GDP by 2032 and increase UAE exports to the Philippines to US$7.62 billion over the same period. This will be facilitated through the elimination or reduction of customs duties, removal of unnecessary trade barriers, expanded market access in services, development of a regulatory framework for digital trade, and an effective dispute settlement mechanism.
He stressed that the agreement provides mutual benefits, offering broader access for UAE products to the Philippine market by eliminating or reducing tariffs on more than 83 percent of tariff lines. These include products such as polyethylene, petrochemicals, fertilizers, mechanical equipment, ceramics, glass, iron and steel, and copper. In return, it will enhance the flow of Philippine exports to the UAE market, including electronics, agricultural products, aircraft parts, textiles, jewelry, aluminum, essential oils, and cosmetics.
Al Zeyoudi concluded by stating that the CEPA with the Philippines reinforces the UAE's role as a central hub for global supply chains connecting the Arab region, Europe, Asia, and Africa. It also opens new avenues for cooperation between the private sectors of both countries, especially in services, which constitute the largest segment of the Philippine economy, contributing over 62 percent of its GDP.