Welcome to the Embassy of the Philippines

Philippine-Saudi Arabian political relations remain friendly and strong. This state of political relations was proven during the state visit of President Gloria Macapagal-Arroyo to the Kingdom in May 2006, when the President was well-received by the royal family led by The Custodian of the Two Holy Mosques King Abdullah. These relations are manifested in three (3) important areas, namely:  the Peace Process in southern Philippines, the Organization of Islamic Conference (OIC) and Candidatures to the U.N. and other international bodies.

Saudi Arabia supports the GRP-MNLF peace negotiations. Recently, the Kingdom has supported the tripartite meeting among the Philippine Government, the MNLF and the OIC-Group of 8, and the holding of the tripartite meeting in Indonesia, instead of Jeddah.

As far as the OIC is concerned, the Philippines is still actively seeking an observer status in the Organization. Being an influential member of the OIC, the Philippines hopes for Saudi Arabia’s support in this regard.

With regards to candidatures, the Philippines and Saudi Arabia exchange mutual support for each other’s candidates in the UN and other international, intergovernmental bodies. Most recently, Saudi Arabia supported the Philippine candidature for a seat in the Human Rights Council (HRC) based in Geneva. The Philippines won this candidature, garnering the second highest number of votes among the Asian winners. The Philippines has also been campaigning for the candidatures of Senator Miriam Defensor-Santiago to the International Court of Justice (ICJ), of Education Secretary Jesli Lapuz to the UNESCO Executive Board, and of Ambassador Lilia R. Bautista to the Appellate Body of the World Trade Organization (WTO). The Philippines hopes for Saudi Arabia’s support to these candidatures.

Over the years, Philippine trade relations with the Kingdom of Saudi Arabia have remained strong and steady. The Kingdom is the leading trading partner of the Philippines in the Arab Gulf States and in the entire Middle East. Total two-way volume of trade registered a remarkable growth in 2007, posting US$3.6 billion as compared with US$1.19 billion generated in 2003. The balance of trade has been, however, always in favor of the Kingdom. This is due to Philippines’ huge importation of crude oil from the Kingdom. Philippines buys 60 percent of its total needs from Saudi Arabia and the remaining 40% from various market sources.

Similarly, Philippine exports to the Kingdom has also been gradually gaining ground. From a low of US$39.3 million in 2003, it increased to US$66.69 million in 2007. Top Philippine export products to the Saudi market include: Food & Food preparation, Garments, Furniture and Home Décor, Fashion Accessories, Marine products, Agri-products, Cosmetics and Health care products, Industrial Manufacturers, specifically machineries, transport equipment, apparatus and parts and etc.

The Philippine’s recent bright trade and investment performance in the Saudi market started from the successful visit of President Gloria Macapagal-Arroyo to the Kingdom in the middle of 2006. Employing highest personal diplomacy, the president was able to drumbeat trade and investment opportunities in the Philippines. Some of the President’s meetings with notable personalities in both Government and business sectors that yielded major outputs include:

• Meeting with HRH Prince Al-Waleed Bin Talal that paved the way for a multimillion dollar investment by the Kingdom Hotel Investments into the construction of a 7-stars Hotel in the Philippine in a business tie-up with Ayala Land Inc. The Kingdom Holding Group is also reported to be interested in the development of tourism related projects in Bohol and Palawan.

• Meeting with Chairman and Governor Amr Al-Dabagh, Saudi Arabian General Investment Authority (SAGIA) that opened the doors for business and investment cooperation between construction companies in the Philippines and the Kingdom of Saudi Arabia.

• Meeting with the Council of Saudi Chambers of Commerce and Industry and the Jeddah Chamber of Commerce and Industry that encouraged bilateral business visit exchanges. Since then, business groups from the Philippines have been frequenting the Kingdom.

Taking a cue from the successful presidential visit in 2006 and to sustain its exemplary achievements, the Philippines organized three (3) trade and investment missions into the Kingdom last year, namely: the 1st Mindanao Trade and Investment to KSA in March 2007, the 1st Philippine Construction Mission to KSA in April 2007 and the 2007 IFEX Roadshow and Food Business Mission to Middle East last November 2007. The missions were all successful and expected to push further the strengthening bilateral trade relations between RP & KSA. The following were accomplished during these trade and investment missions:

• In cooperation with the Philippine Embassy in Riyadh and Philippine Consulate General in Jeddah, the Mindanao Trade and Investment mission sought to tap the huge Filipino market in the Kingdom. The “Magic 25” project encourages the estimated 1.2 million OFWs to patronize “Made in the Philippines Products” by spending in the Kingdom at least 25 Riyals per month on Philippine export products. The objective of Magic 25 is to increase Philippine exports to KSA by US$112 million annually.

• The Mindanao Trade and Investment Mission also generated Saudi investment for the establishment of US$30 million Cold Storage Facility in Mindanao. Abbar and Zainy Co. who is the investor in this project is also discussing with Five Star Agri-Aqua Venture, Inc., a US$130 Million joint venture project for the growing of banana in Sudan where the Philippine firm will provide technology expertise and put up a minimum capital share.

• The 1st Philippine Construction Mission to the Kingdom was able to establish linkages with concerned Saudi Government Offices that handle and regulate construction investment projects in the Kingdom such as SAGIA and the Royal Commission of Yanbu and Jubail. The mission also met with the Riyadh Chamber of Commerce and Industry where investment matchings were organized for Saudi construction mission also visited the King Abdullah Economic City Presentation Center in Rabigh. Briefings on various construction investment opportunities were conducted. Currently, project proposals discussions in the Economic City are moving.

Philippine-Saudi bilateral trade relations are seen to further flourish in the coming years. Market access problems of some Philippine export products into the Kingdom such as the ban on Philippine marine products due to alleged cholera infestation and desiccated coconut due to cadang-cadang disease were properly addressed by the sheer efforts of the Philippine Embassy. Saudi buyers/consumers have become discernible that their preferences for goods are influenced not much by price but greatly consider quality and designs. The Philippine has competitive edge on this matter. It is also observed that Philippine export products to the Kingdom are not only selling well to the estimated more than one million OFWs but have started creating market niche among locals. Filipino expatriates are doing excellent trade promotion goodwill.

The following are statistics on the bilateral merchandise trade (FOB Value in US$):