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Advocates Philippines
PH And Saudi Forge $4.26 Billion Investment Agreement
Photo credit: PCO
An investment agreement worth over $4.26 billion was signed by the Philippine business delegation and Saudi business leaders to further grow economic ties between the two countries.
The signing ceremony took place during President Ferdinand R. Marcos Jr.'s participation in the Association of Southeast Asian Nations-Gulf Cooperation Council (ASEAN-GCC) Summit in Saudi Arabia.
The agreement holds the promise of creating employment opportunities for over 15,000 Filipinos, particularly in the construction industry and human resource services. During a roundtable meeting with business leaders, President Marcos expressed his enthusiasm for this partnership.
"With an estimated value of over USD 120 million, the agreements that will be signed today are set to benefit more than 15,000 Filipinos in training and employment opportunities across a wide range of professions in the construction industry," President Marcos remarked in his address.
The Department of Trade and Industry (DTI) revealed that Saudi's Al Rushaid Petroleum Investment Company and Samsung Engineering NEC Co. Ltd. have signed agreements with the Philippines' EEI Corp.
These agreements pertain to construction export services and are valued at $120 million. Furthermore, Saudi's Al-Jeer Human Resources Company-ARCO inked an agreement with the Association of Philippine Licensed Agencies for the Kingdom of Saudi Arabia, with a substantial worth of $3.7 billion, for human resource services.
The DTI further reported that Saudi's Maharah Human Resources Company has entered into investment agreements, each worth $191 million, with the Philippines' Staffhouse International Resources Corporation and E-GMP International Corporation. These agreements revolve around human resource services, emphasizing the depth of cooperation between the two nations.
President Marcos acknowledged the pivotal role of the companies involved in strengthening the bilateral ties between the Philippines and Saudi Arabia, a country that is home to over a million Filipino migrant workers.
"To our current and future business partners, I hope that this meeting has served as an excellent platform for building greater and closer partnerships between the Philippines and the Kingdom of Saudi Arabia," President Marcos emphasized.
During his visit to Saudi Arabia, President Marcos engaged in a roundtable meeting with Arab businessmen, organized by the Department of Trade and Industry (DTI) and led by Minister Khalid Al-Falih of the Saudi Ministry of Investment.
President Marcos noted the timeliness of the meeting as the Philippine economy maintains a high growth trajectory, with a 7.6 percent GDP growth rate in 2022, the fastest since 1976.
He also highlighted that the Philippines received $9.2 billion in net inflows of foreign direct investments in 2022.
"Our financial and banking sectors are healthy and robust. Our credit rating continues to receive stable and positive investment grades," President Marcos stated.
He reassured the business community of the Philippines' commitment to supporting current and prospective Saudi investors, emphasizing that the Philippine government has amended existing laws to further open its economy to foreign investments.
Key initiatives include the Foreign Investments Act, Retail Trade Liberalization Act, Public Service Act, and the Renewable Energy (RE) Act, aimed at attracting foreign investors to telecommunications, port operations, transportation, and clean energy sectors.
"Moreover, foreign investors are able to enjoy fiscal incentives made available through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. I urge you to further engage with my Economic Team to learn more about such benefits," the President added.
President Marcos also highlighted the Maharlika Investment Fund, the Philippines' first sovereign investment fund, designed to drive long-term economic development by increasing investments in high-impact sectors.
He expressed anticipation not only for benefiting from Saudi investments but also for gaining from their experience in managing similar funds. He reaffirmed the country's readiness for deeper economic partnerships within Southeast Asian regions and neighboring Gulf nations.
"We hope that the Philippines will be your chosen gateway to the ASEAN and Regional Comprehensive Economic Partnership, or RCEP, economies," President Marcos stated.
He expressed hope that the meeting would pave the way for renewed partnership and future business exchanges between the Philippines and Saudi Arabia.
Saudi Ministry of Investment Minister Khalid Al-Falih echoed the sentiment of partnership and emphasized the potential in sectors such as finance, energy, petrochemicals, industry, logistics, tourism, real estate development, labor, and agriculture.
"We view the Philippines as not only a critical large company that has grown very fast - a country that has grown very fast, which is important in its own right," Al-Falih said. He also considered the Philippines a bridge to the ASEAN region and the rest of Asia and encouraged President Marcos to see Saudi Arabia as a strategic entry point to the Middle East.
The signing ceremony took place during President Ferdinand R. Marcos Jr.'s participation in the Association of Southeast Asian Nations-Gulf Cooperation Council (ASEAN-GCC) Summit in Saudi Arabia.
The agreement holds the promise of creating employment opportunities for over 15,000 Filipinos, particularly in the construction industry and human resource services. During a roundtable meeting with business leaders, President Marcos expressed his enthusiasm for this partnership.
"With an estimated value of over USD 120 million, the agreements that will be signed today are set to benefit more than 15,000 Filipinos in training and employment opportunities across a wide range of professions in the construction industry," President Marcos remarked in his address.
The Department of Trade and Industry (DTI) revealed that Saudi's Al Rushaid Petroleum Investment Company and Samsung Engineering NEC Co. Ltd. have signed agreements with the Philippines' EEI Corp.
These agreements pertain to construction export services and are valued at $120 million. Furthermore, Saudi's Al-Jeer Human Resources Company-ARCO inked an agreement with the Association of Philippine Licensed Agencies for the Kingdom of Saudi Arabia, with a substantial worth of $3.7 billion, for human resource services.
The DTI further reported that Saudi's Maharah Human Resources Company has entered into investment agreements, each worth $191 million, with the Philippines' Staffhouse International Resources Corporation and E-GMP International Corporation. These agreements revolve around human resource services, emphasizing the depth of cooperation between the two nations.
President Marcos acknowledged the pivotal role of the companies involved in strengthening the bilateral ties between the Philippines and Saudi Arabia, a country that is home to over a million Filipino migrant workers.
"To our current and future business partners, I hope that this meeting has served as an excellent platform for building greater and closer partnerships between the Philippines and the Kingdom of Saudi Arabia," President Marcos emphasized.
During his visit to Saudi Arabia, President Marcos engaged in a roundtable meeting with Arab businessmen, organized by the Department of Trade and Industry (DTI) and led by Minister Khalid Al-Falih of the Saudi Ministry of Investment.
President Marcos noted the timeliness of the meeting as the Philippine economy maintains a high growth trajectory, with a 7.6 percent GDP growth rate in 2022, the fastest since 1976.
He also highlighted that the Philippines received $9.2 billion in net inflows of foreign direct investments in 2022.
"Our financial and banking sectors are healthy and robust. Our credit rating continues to receive stable and positive investment grades," President Marcos stated.
He reassured the business community of the Philippines' commitment to supporting current and prospective Saudi investors, emphasizing that the Philippine government has amended existing laws to further open its economy to foreign investments.
Key initiatives include the Foreign Investments Act, Retail Trade Liberalization Act, Public Service Act, and the Renewable Energy (RE) Act, aimed at attracting foreign investors to telecommunications, port operations, transportation, and clean energy sectors.
"Moreover, foreign investors are able to enjoy fiscal incentives made available through the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. I urge you to further engage with my Economic Team to learn more about such benefits," the President added.
President Marcos also highlighted the Maharlika Investment Fund, the Philippines' first sovereign investment fund, designed to drive long-term economic development by increasing investments in high-impact sectors.
He expressed anticipation not only for benefiting from Saudi investments but also for gaining from their experience in managing similar funds. He reaffirmed the country's readiness for deeper economic partnerships within Southeast Asian regions and neighboring Gulf nations.
"We hope that the Philippines will be your chosen gateway to the ASEAN and Regional Comprehensive Economic Partnership, or RCEP, economies," President Marcos stated.
He expressed hope that the meeting would pave the way for renewed partnership and future business exchanges between the Philippines and Saudi Arabia.
Saudi Ministry of Investment Minister Khalid Al-Falih echoed the sentiment of partnership and emphasized the potential in sectors such as finance, energy, petrochemicals, industry, logistics, tourism, real estate development, labor, and agriculture.
"We view the Philippines as not only a critical large company that has grown very fast - a country that has grown very fast, which is important in its own right," Al-Falih said. He also considered the Philippines a bridge to the ASEAN region and the rest of Asia and encouraged President Marcos to see Saudi Arabia as a strategic entry point to the Middle East.
Oct 20, 2023
