The United Arab Emirates and Philippines have solidified a transformative economic alliance through a Comprehensive Economic Partnership Agreement (CEPA) that establishes a framework for sustained bilateral growth. Announced by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, this agreement represents the fourth such partnership between the UAE and ASEAN nations, following similar pacts with Cambodia, Indonesia, and Vietnam.
The agreement emerges from robust existing economic relations, with non-oil trade reaching approximately $940 million in 2024 and showing a remarkable 22.4% annual growth rate during the first three quarters of 2025. The Philippines, recognized as ASEAN’s second-fastest growing economy with 5.6% growth in 2024 and a nominal GDP of $471.8 billion, presents strategic advantages as a major logistics hub and member of the Regional Comprehensive Economic Partnership.
Economic projections indicate the CEPA will contribute $2.4 billion to the UAE’s GDP by 2032 while boosting UAE exports to the Philippines to $7.62 billion within the same timeframe. The partnership eliminates or reduces customs duties on over 83% of tariff lines, covering key exports including polyethylene, petrochemicals, fertilizers, mechanical equipment, ceramics, glass, and metals.
The agreement facilitates enhanced market access in services—a sector constituting 62% of the Philippine economy—while establishing regulatory frameworks for digital trade and effective dispute resolution mechanisms. Significant existing investments include DP World’s developments in Philippine ports and logistics infrastructure, alongside Masdar’s landmark $15 billion agreement for renewable energy projects targeting one gigawatt of clean energy capacity by 2030.
With over 700,000 Filipinos residing in the UAE—the second-largest Filipino community in the Gulf—the agreement strengthens people-to-people connections while positioning the UAE as a central hub connecting Arab, European, Asian, and African supply chains. Both nations share aligned visions for building resilient, open economies committed to free trade principles and sustainable long-term growth.