Manila: An official from the Department of Trade and Industry told Arab News that the Philippines expects trade with Saudi Arabia to increase as she outlined potential areas for expansion, including a mutual recognition agreement for halal certification.
The Philippines' total trade with Saudi Arabia increased by 2.8 percent in 2022 compared to 2018. In the same year, the Kingdom was listed as the 16th most important trading partner and 37th export market for the Philippines.
Despite the small number, Filipino officials emphasised the numerous possibilities for expanding trade between the two nations, with goods like bananas, canned tuna, and data storage units having the greatest export potential to Saudi Arabia.
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According to Charmaine Mignon S. Yalong, the DTI's commercial attaché to the Middle East and Africa, the volume of trade with Saudi Arabia will likely continue to rise.
She asserted that data processing equipment is among "the best options for the Philippines' export diversification in Saudi Arabia," pointing to the Kingdom's Vision 2030, which has a significant focus on digital growth, as the main driver of demand for such goods.
Additional avenues for enhancing trade between Saudi Arabia and the Philippines include mutual recognition of each nation's halal certification.
"Signing a mutual recognition agreement on the accreditation of halal certifying bodies could also increase potential trade and investments between the two countries," she added.
"The MRA would streamline the food standards and requirements of both countries while assisting in the development of high-quality Philippine halal exports through capacity building and the expertise of the Saudi Food and Drug Authority."
This year, the Philippine Economic Zone Authority began a promotion campaign for the domestic halal industry as Manila aims to increase the market share of its halal-certified foods, particularly in the Gulf nations.
More than 1.7 million Filipinos reside in the Kingdom, which is also a popular location for Filipino expatriates, according to the Philippines, which sees room for growth for Filipino franchise brands there.
Yalong cited Filipino brands with a presence in Saudi cities, such as fast food joints Jollibee, Chowking, and Potato Corner as examples. "Aside from trade, Filipino franchise brands and companies hold potential for growth due to the large Filipino expatriate community in Saudi Arabia," Yalong said.
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According to John Paolo Rivera, president and chief economist of Oikonomia Advisory and Research in Manila, the Philippines could increase trade with Saudi Arabia beyond its usual trading partners and export of labour.
According to Rivera of Arab News, "this diversifies market opportunities to other trading partners, lowering the risks involved in having just a few major trading partners."