MANILA — The Philippines on Tuesday sealed its first free trade agreement with a Gulf state and moved closer to hosting what could be the country’s largest data center, marking a major boost to trade, investment, and digital infrastructure ties with the United Arab Emirates (UAE) during President Ferdinand R. Marcos Jr.’s working visit to Abu Dhabi.
Marcos and UAE President Sheikh Mohamed bin Zayed Al Nahyan witnessed the signing of the Comprehensive Economic Partnership Agreement (CEPA) on the sidelines of the Abu Dhabi Sustainability Week 2026 Summit at the Abu Dhabi National Exhibition Center. Trade Secretary Ma. Cristina Roque signed the agreement on behalf of the Philippine government.
According to the Presidential Communications Office (PCO), the CEPA is the Philippines’ first free trade deal with a Gulf country and is expected to cut tariffs, expand market access, attract investments, and open more opportunities for Filipino professionals and service providers in the UAE.
The agreement covers digital trade, micro, small and medium enterprises, sustainable development, intellectual property, competition and consumer protection, government procurement, and technical cooperation. Philippine exports expected to benefit include bananas, pineapples, canned tuna, electronics, machinery, and other high-demand products.
Bilateral trade between the Philippines and the UAE reached nearly USD 1.83 billion in 2024, with the Emirates accounting for about 39 percent of Philippine exports to the Middle East. Preliminary estimates indicate the CEPA could increase Philippine exports to the UAE by more than nine percent while strengthening links with the wider Gulf market.
The pact also aims to provide a stable and non-discriminatory environment for Filipino firms, including MSMEs, in sectors such as information technology and business process management, tourism, healthcare, education, construction, and professional services.
On the investment front, Marcos met with executives of DAMAC Digital to discuss the company’s planned projects in the Philippines, including a proposed large-scale data center in Laguna.
“We are very excited about DAMAC Digital’s planned investment in the Philippines, including what is set to be the largest data center in the country, with up to 250 MW of capacity,” Marcos said in a Facebook post.
“This positions the Philippines as an emerging data center hub in the region,” he added.
Marcos and DAMAC Digital founder and chairperson Hussain Sajwani discussed collaboration in digital infrastructure, including data centers, cloud services, and artificial intelligence-driven technologies, the PCO said.
DAMAC Digital, the digital infrastructure arm of the DAMAC Group, operates in 11 countries and is targeting a global capacity of 4,000 megawatts by 2025. As part of its Southeast Asia expansion, the company has committed over USD 3 billion in investments and aims to reach 250 MW of operational capacity by 2026.
“The President guaranteed to extend DAMAC Digital high priority as they are investing in a sector the Philippines wants to develop,” the PCO said.
The CEPA signing and the business meeting capped Marcos’ two-day working visit to Abu Dhabi, underscoring Manila’s push to deepen trade, investment, and technology partnerships with the UAE./PN
