Overview of PH-UAE CEPA Case Model
- Robust Non-Oil Trade & Economic Diversification
- The Philippines and UAE the have long maintained close and robust bilateral relations. This is evidenced by the rapid growth in non-oil trade, which reached approximately USD 506.1 million in the first half of 2023, a 19.4% increase year-over-year. This trend indicates a significant shift away from traditional oil-oriented commerce toward new industries and goods.
- Deepening Integration Through Human Capital
- The economic ties extend beyond simple trade, highlighted by the presence of over 700,000 Overseas Filipino Workers (OFWs) in the UAE. This significant labor mobility underscores the expanding integration between the two nations in terms of capital, workforce, and technology exchange.
- Future Outlook: The 2025 Comprehensive Economic Partnership Agreement (CEPA)
- The two nations are set to solidify their status as strategic economic partners with the signing of the CEPA in 2025. This landmark agreement aims to reduce trade barriers and enhance cooperation in key areas such as services, investment, and the digital economy, paving the way for a new era of prosperity.
Total Trade Volume Trend (2017-2024)
The total trade volume between the two countries temporarily decreased in 2021 but showed a rapid recovery and growth trend in 2024.
- 2017: $1.348 billion
- 2021: $1.217 billion
- 2024: $1.88 billion
From 2017 to 2024, the total trade volume increased by approximately 39.5%, showing that economic cooperation between the two countries is steadily expanding.
Trade in Services
- Labor-Based Services
- Financial & Fintech
- Digital finance, remittances, microfinance exchanges growing with simplified processes.
- IT & Tourism Services
- Expanded post-pandemic with UAE investments in Philippine BPO and fintech firms.
- Market Access & Protection
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Expansion of market access limits
Guarantee of national treatment
Facilitation of professional movement
- Institutional Cooperation
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Regulatory cooperation in finance
Services modernization
Digital trade expansion
Investment & Cooperation with UAE
UAE sovereign wealth funds manage USD 2.39 trillion as of May 2025, with growing interest in Philippine infrastructure and renewable energy.
Data flows, cybersecurity, and fintech integration with 2025 forums on AI and digital governance.
Reduced barriers for joint ventures in AI, clean energy, and logistics. UAE investments could rise by USD 1-2 billion annually by 2030.
Philippine IT-BPO firms expanding in UAE free zones. Expected 20% growth in digital service exports.
Case models using PH-UAE CEPA
Fresh Mango HS CODE: 0804.50.20
Subject to Wholly Obtained (WO) origin criterion. Exporters issue Certificate of Origin for preferential rates.
Price competitiveness over non-FTA countries
Price competitiveness over non-FTA countries
Electronics HS CODE: 8542.31.00
Subject to Value-Added PSR (40% regional value content). Compliant products qualify for CO and preferential tariffs.
Enhanced access to UAE tech hubs, 15% export growth
Securing a base country for exports to neighboring countries