Philippines and Saudi Arabia Explore New Avenues for Trade Expansion

The Philippines is on the cusp of a major trade boom with Saudi Arabia, according to a recent statement from the Department of Trade and Industry (DTI). In an interview with Arab News, a DTI representative highlighted several areas where trade between the two countries could be expanded, including halal certification, data processing machines, and Filipino franchise brands.

The 2022 trade figures between the Philippines and Saudi Arabia already point to a growing economic relationship. Total trade between the two countries increased by 2.8% in 2022, compared to 2018. This growth has been driven by several factors, including the increasing number of Filipino workers in Saudi Arabia and the growing demand for Philippine products in the Middle East.

In the interview, the DTI representative emphasized the potential for a mutual recognition agreement (MRA) on halal certification to boost trade between the two countries. Halal certification is a process that ensures that food and other products meet Islamic dietary requirements. An MRA would allow Philippine companies to export halal-certified products to Saudi Arabia without having to undergo separate certification from the Saudi Food and Drug Authority (SFDA).

The DTI representative also pointed to the growing demand for data processing machines in Saudi Arabia as an opportunity for Philippine exporters. Saudi Arabia is in the midst of a major digital transformation, and there is a growing need for data storage and processing solutions. Philippine companies are well-positioned to meet this demand, as they have a strong track record in manufacturing and exporting electronics.

Finally, the DTI representative mentioned the potential for Filipino franchise brands to succeed in Saudi Arabia. There is a large and growing Filipino community in Saudi Arabia, and many of these expatriates are looking for familiar brands from home. Some Filipino franchise brands, such as Jollibee, Chowking, and Potato Corner, have already established a presence in Saudi Arabia and are enjoying strong sales.

Overall, the DTI representative is optimistic about the future of trade between the Philippines and Saudi Arabia. She believes that the two countries have a lot to offer each other and that there is significant potential for growth in the years to come.

In addition to the points mentioned by the DTI representative, there are a few other factors that could contribute to the growth of trade between the Philippines and Saudi Arabia. For example, the two countries are members of the Association of Southeast Asian Nations (ASEAN) and the Gulf Cooperation Council (GCC), which could facilitate trade between them. Additionally, both countries are members of the World Trade Organization (WTO), which provides a framework for trade between them.

With these factors in mind, it is clear that the Philippines and Saudi Arabia are well-positioned to achieve significant trade growth in the years to come.