Since then, relations between the Philippines and Saudi Arabia have been defined mainly by interests in three O’s — Oil, Overseas Filipino Workers (OFWs) and the Organization of Islamic Conference (OIC).  About 40 percent of Philippine oil demand is still fulfilled by the Kingdom even after Saudi Arabia gave up and sold its 40 percent share in Petron in 2008. Although bilateral trade has grown fourfold in a five-year period between 2003 and 2008, from $1.2 billion to $5 billion, it has always been heavily tilted in favor of the Kingdom because petroleum products comprise more than 90 percent of Philippine imports from Saudi Arabia.

A steady stream of migrant workers from the “Pearl of the Orient Seas” into the Kingdom for almost four decades has become a strong testament to relations between the two countries.

Distractions and minor irritations arising from market dynamics and policy changes have been overcome with an increased level of official consultation and cooperation.  In this regard, problems were turned into opportunities where both sides could work closely together and enhance mutual understanding and friendship. The first-ever state visit by a Philippine head of state in March 1982 and summit talks between President Ferdinand E. Marcos and King Khaled bin Abdulaziz placed high on the agenda the problem of Muslim Filipinos in Mindanao, which had already been internationalized with the involvement of the OIC.

Further developments led to the final peace agreement between the Philippine government and the Moro National Liberation Front (MNLF) with ever-greater cooperation from the OIC.  Support from Saudi Arabia, which hosts OIC headquarters in Jeddah, is thus considered crucial not only for the success of the Philippines’ continuing efforts to win OIC observer status, but also to enhance its engagement with the 57-member organization. Notwithstanding the divide in terms of geography, culture and demographics between the two countries, it became evident that there was a need to expand the existing relations from the “O3” orbit in order to benefit from a greater economic exchange on the level of competitive advantages.

President Fidel V. Ramos came to Riyadh on a working visit on Oct. 17, 1994 and witnessed the signing of the RP-Saudi Bilateral Agreement for Economic, Trade, Investment and Technical Cooperation.

In the years that followed, the relations gradually took a course toward the ambit of enhanced economic cooperation and people-to-people relations. Pursuant to the general framework on economic cooperation, the RP-KSA Joint Commission Meeting was convened in 1999, 2005 and 2008 to identify and discuss new areas of possible cooperation.

In addition, the Philippine-Saudi Joint Business Council was formed in September 2003 to facilitate an exchange of information and visits toward creating more business opportunities between the two private sectors under the umbrella of their respective Chambers of Commerce and Industry.

The RP-KSA Joint Commission Meeting first held in 1999 provided a glimpse into the vast horizon of possibilities for closer cooperation in fields such as agriculture, health, manpower and other technical issues. The second RP-KSA JCM in Riyadh in 2005 produced four signed bilateral agreements on the reciprocal protection and promotion of investments; technical education and vocational training; academic cooperation; and a loan from the Saudi Fund for Development (SFD) for the Mindanao Roads Project.

The third meeting in Manila three years later became a venue for intense discussions on a number of issues of mutual concerns such as customs and trade facilitation, agriculture, fisheries and technical education. It is expected that the fourth meeting in Riyadh this year will see more progress in previous discussions and other pending agreements and have more positive outcome for an expanded bilateral economic relations.

The state visit of President Gloria Macapagal Arroyo to Saudi Arabia on May 7-11, 2006 provided a big boost to the RP-Saudi bilateral relations.

An unprecedented welcome was accorded to her by Saudi officials and leading members of the private business sector in Riyadh, Jeddah and Eastern Province.

Custodian of the Two Holy Mosques King Abdullah, upon Arroyo’s request, ordered the release and repatriation of hundreds of Filipino nationals from various detention centers. The visit also gave an impetus and opened more avenues for bilateral cooperation, trade and investments. The first Mindanao Trade Mission and Philippine Construction Mission to Saudi Arabia as well as several more food-selling missions, followed her lead to promote halal products and raise Philippine export penetration from the ethnic to the mainstream market. In the area of investments, particularly in the hotel and tourism sector, Prince Alwaleed bin Talal, chairman of Kingdom Holding Company, went to Manila in 2007 to witness the signing of a contract between Kingdom Hotels Investment and Ayala Group for $153 million Raffles and Fairmont project in Makati City.

In addition, the embassy was able to position the Philippines as an excellent destination of Saudi overseas investments in accordance with the government’s program to combat persistent inflation and food security issues. For this reason, the Saudi government promptly dispatched a technical team to the Philippines in October 2008. From the World Economic Forum (WEF) in Davos, the president visited Riyadh in February 2009 and met with Minister of Agriculture Fahd Balghunaim and Minister of Commerce Abdullah Zainal Alireza to bolster such efforts and strongly encourage Saudi investments in Philippine agriculture as a form of a strategic cooperation in line with the King’s food security thrust.

She delivered the message further to more Saudi businessmen in the Eastern Region and Jeddah during her second official visit seven months later when she was personally invited by the king to grace the opening of the King Abdullah University of Science and Technology.

As far as tourism is concerned, there has been a notable increase in tourist arrivals from the Kingdom, according to the Department of Tourism, albeit they are not as significant compared with other neighboring Asian countries.

The resumption of Philippine Airlines flights to Riyadh on March 28 this year  after a four-year absence will be a pivotal factor in spurring the growth of tourist arrivals from the Kingdom, which usually generate more income for the local tourism industry than backpackers from Western countries. The Philippine flag carrier’s return also was warmly welcomed by OFWs in the Kingdom who often had to bear the inconvenience brought about by the lack of competitors providing direct flights along the route.

Ambassador Antonio P. Villamor, who assumed his duty on Dec. 19, 2006 is carrying on the quest for stronger cooperation at all aspects of the two countries’ long and friendly relations. Having served as special envoy for the state visit in May 2006 and managed two more successful presidential visits in 2009, he envisions the existing relations to be on the sure path to new heights of successful and mutually beneficial cooperation. “Having crossed the speed bump posed by the global financial crisis, all signs point to a stronger future state of affairs in the areas of trade, investments and tourism with official and business relations moving safely and smoothly,” he said.