RIYADH, 12 June 2008 — The Philippines and Saudi Arabia are bound by strong bilateral ties which have grown from strong to stronger over the years.
“Philippine-Saudi political relations remain friendly and strong. This was proven when President Gloria Macapagal Arroyo was well-received by the royal family led by Custodian of the Two Holy Mosques King Abdullah in May 2006,” Philippine Ambassador to the Kingdom Antonio P. Villamor said as the Philippine Embassy and the 1.3-million-strong Overseas Filipino Workers (OFWs) mark their 110th Independence Day anniversary.
Villamor said that the good relationship between the two countries is manifested in three important areas, namely: the peace process in southern Philippines, the Organization of Islamic Conference (OIC) and candidatures to the United Nations and other international bodies.
The Philippines and Saudi Arabia also exchange mutual support for each other’s candidates in the UN and other international and intergovernmental bodies.
On trade, Kingdom is also the leading trading partner of the Philippines in the Middle East.
Total two-way volume of trade registered a remarkable growth in 2007, posting $3.6 billion as compared with $1.19 billion in 2003. The balance of trade has been, however, always in favor of the Kingdom. This is due to Philippines’ huge dependence on oil from the Kingdom. Philippines buys 60 percent of its total needs from Saudi Arabia and the remaining 40 percent from various market sources.
Similarly, Philippine exports to the Kingdom have been gradually gaining ground. From a low of $39.3 million in 2003, it increased to $66.69 million in 2007. Top Philippine export products to the Saudi market include food and food preparation, garments, furniture and home décor, fashion accessories, marine products, agri-products, cosmetics and health care products, industrial manufacturers, specifically machineries, transport equipment, among others.
The Philippines’ recent bright trade and investment performance in the Saudi market went up with Arroyo’s successful visit to the Kingdom in May 2006. Employing highest personal diplomacy, the president was able to drum up trade and investment opportunities in the Philippines. 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 Philippine Embassy.
Saudi buyers and consumers have become discernible about their preferences for goods and are influenced not much by price but greatly consider quality and designs.
Philippine export products to the Kingdom are not only selling well to the estimated 1.3 million OFWs but have started creating market niche among locals.
