Philippines, UAE Seal First Free Trade Agreement in Middle East

The Philippines and the United Arab Emirates (UAE) have formalized a landmark free trade agreement aimed at expanding market access, boosting exports, and creating more opportunities for Filipino workers and professionals in the Middle East.

The signing of the Comprehensive Economic Partnership Agreement (CEPA) marks the Philippines’ first free trade deal with a Middle Eastern country and was one of the highlights of President Ferdinand Marcos Jr.’s two-day working visit to the UAE.

President Marcos and UAE President Sheikh Mohamed bin Zayed Al Nahyan witnessed the signing on the sidelines of the Abu Dhabi Sustainability Week 2026 Summit at the Abu Dhabi National Exhibition Center. Trade Secretary Ma. Cristina Roque and UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi signed the agreement on behalf of their respective governments.

In a statement, the Presidential Communications Office (PCO) said CEPA seeks to reduce tariffs, expand market access for goods and services, increase investment flows, and generate new opportunities for Filipino professionals and service providers in the UAE.

The agreement covers key sectors including digital trade, micro, small and medium enterprises (MSMEs), sustainable development, intellectual property, competition and consumer protection, government procurement, and technical cooperation.

According to the PCO, the deal is expected to benefit Philippine exports such as bananas, pineapples, canned tuna, electronics, machinery, and other high-demand products. Preliminary studies cited by the PCO indicate that the agreement could increase Philippine exports to the UAE by 9.13 percent, while also generating consumer savings and strengthening trade linkages with the Gulf region.

The PCO added that CEPA will ensure a stable and non-discriminatory environment for Filipino firms, including MSMEs, across sectors such as information technology-business process management, tourism, healthcare, education, construction, and professional services.

“The CEPA is also expected to further complement the Philippines’ network of FTAs (free trade agreements) with Japan, South Korea, European Free Trade Agreement and regional agreements within the Association of Southeast Asian Nations and trade partners, including the Regional Comprehensive Economic Partnership Agreement,” the PCO said.

The Philippines and the UAE already maintain several bilateral agreements, including the Investment Promotion and Protection Agreement, as well as cooperation frameworks covering trade, energy, logistics, innovation, and tourism.

Also present at the signing ceremony were First Lady Liza Marcos, Foreign Affairs Secretary Ma. Theresa Lazaro, Finance Secretary Frederick Go, and Special Envoy to the UAE for Trade and Investment Kathryna Yu-Pimentel. The event was followed by a brief meeting between President Marcos and Sheikh Mohamed, where discussions were expected to cover trade, defense, and sustainable development.

The two leaders last met in November 2024, during which they discussed ways to further strengthen bilateral relations.

Marcos’ working visit to the UAE is his 40th overseas trip since assuming the presidency in 2022.