PRESIDENT Ferdinand “Bongbong” Marcos Jr. will bring home over $4.26 billion worth of investment agreement with Saudi Arabia business leaders.
Marcos met with Saudi business leaders on Thursday, October 19, 2023, at the sidelines of his attendance at the Association of Southeast Asian Nations-Gulf Cooperation Council (Asean-GCC) Summit.
He said the investment agreements are seen to benefit 15,000 Filipinos in training and employment opportunities across the wide range of professions in the construction industry.
The Department of Trade and Industry (DTI) said the investment pledges include a pact signed between Saudi’s Al Rushaid Petroleum Investment Company and Samsung Engineering NEC Co. Ltd. and the Philippines’ EEI Corp. for construction and export services worth $120 million.
Saudi's Al-Jeer Human Resources Company-ARCO also inked a $3.7 billion agreement for human resource services with the Association of Philippine Licensed Agencies for the Kingdom of Saudi Arabia.
The Philippines’ Staffhouse International Resources Corporation and E-GMP International Corporation also got $191 million investment each from Saudi’s Maharah Human Resources Company for human resource services.
“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,” Marcos said in his speech during the meeting.
He also highlighted the Philippine economy’s continued growth trajectory with gross domestic product at 7.6 percent in 2022, the fastest growth rate recorded since 1976.
The President also emphasized the country’s $9.2 billion 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,” Marcos said.
“Indeed, the Philippines’ economic achievements in the past year reflect the sustained efforts of this administration, supported by the private sector, in fostering an enabling business environment, cutting red tape, lowering the cost of doing business, and improving competitiveness,” he added.
Marcos assured the Saudi investors of continued support from the Philippine government especially by amended existing laws such as the Foreign Investments Act, Retail Trade Liberalization Act, Public Service Act, and the Renewable Energy (RE) Act, which aim to attract more foreign investors particularly for telecommunications, port operations, transportation, and clean energy sectors.
"Marcos assured Saudi investors of continued support from the Philippine government, especially through the amendment of existing laws such as the Foreign Investments Act, Retail Trade Liberalization Act, Public Service Act, and the Renewable Energy (RE) Act. These amendments aim to attract more foreign investors, particularly in the telecommunications, port operations, transportation, and clean energy sectors.
Maharlika fund
The President also brought to discussion the Maharlika Investment Fund (MIF), a brainchild of the administration.
“We hope that the Philippines will be your chosen gateway to the Asean and Regional Comprehensive Economic Partnership, or RCEP, economies, which is earlier spoken about. And, on that note, I hope that the Saudi business leaders present here today will further make it happen in the Philippines,” said Marcos.
In response, Saudi Ministry of Investment Minister Khalid Al-Falih said Saudi investors are eager to learn from the Philippines’ finances, being one of Asean’s most exciting markets, expressing greater interest about the MIF.
“We want to connect you to key Saudi investors with impressive success stories to share and with the desire to continue building with international presence by investing with partners across the globe, the Philippines being a key one,” Al-Falih said.
“I am pleased that we are joined today by leaders and the sector from Saudi Arabia who are eager to learn more about the investment, opportunities and one of Asean’s most exciting markets and learn more about the newly-launched Maharlika Investment Fund that you have launched under your administration,” he added.
Mulhan Albakree, executive general manager of Public Investment Fund of the Kingdom of Saudi Arabia, and Bandar Al Hamali, chief executive officer of Jada, one of Saudi Arabia’s biggest investment companies, both expressed interest in the MIF during the meeting.
Al-Falih said they are looking forward to partnering with the Philippines and boosting the Philippine-Saudi Arabia partnership in terms of finance, energy and petrochemicals, industry and logistics, tourism, real estate development, labor, and agriculture.
“We view the Philippines as not only a critical large company that has grown – very fast country that has grown – very fast, which is important in its own right,” Al-Falih told Marcos.
“We also see the Philippines as a bridge to the Asean region and to the rest of Asia and I trust that you consider Saudi Arabia as well, your excellency, your strategic entry point to the Middle East,” he added. (SunStar Philippines)