Philippines, UAE Seal First-Ever Free Trade Deal with Middle East
New trade pact promises lower tariffs, cheaper goods, and more opportunities for Filipinos in the UAE
Big trade news just dropped.
The Philippines has officially signed a free trade agreement with the United Arab Emirates, marking its first-ever trade deal with a Middle Eastern country. The agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to make goods cheaper, boost investments, and open more doors for Filipino workers and businesses in the UAE.
The signing was witnessed by President Ferdinand Marcos Jr. and UAE President Sheikh Mohamed bin Zayed Al Nahyan on January 13, during the Abu Dhabi Sustainability Week 2026 summit.
What CEPA Means for Everyday Trade
At its core, CEPA is about cutting trade barriers. This includes reducing or removing tariffs on Philippine exports, which could make Filipino products more affordable and competitive in the UAE market.
Think lower costs, smoother trade, and easier market access for businesses on both sides.
Sectors Set to Benefit
The agreement covers a wide range of industries, not just goods. These include:
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Digital trade
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MSMEs
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Sustainable development
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Intellectual property
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Consumer protection and competition
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Government procurement
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Technical cooperation
Key Philippine exports expected to gain include bananas, pineapples, canned tuna, electronics, and machinery — products already in demand in the UAE.
More Opportunities for Filipino Professionals
CEPA also creates a more stable and fair business environment for Filipino companies, including small and medium enterprises.
Sectors like IT-BPM, tourism, healthcare, education, construction, and professional services are expected to see new opportunities, especially for Filipinos working or planning to work in the UAE.
A Gateway to the Wider Gulf
The UAE isn’t just a market on its own — it’s also a door to the wider Gulf Cooperation Council (GCC), which includes Saudi Arabia, Qatar, Oman, and Kuwait.
In 2024 alone, trade between the Philippines and the UAE reached nearly $1.83 billion, with the UAE accounting for almost 39% of Philippine exports to the Middle East. Early estimates suggest Philippine exports to the UAE could grow by over 9% under the agreement.
Years in the Making
Talks for the deal started back in 2022, with negotiations picking up in 2024 and wrapping up in 2025. CEPA now builds on existing partnerships between the two countries, including agreements on investment protection and cooperation in energy, logistics, innovation, and tourism.
For both countries, the message is clear: trade ties just got a serious upgrade.