The Philippines is keen to attract investments from Arab countries looking for new destinations for their capital, and President Ferdinand Marcos Jr. believes the strong presence of overseas Filipino workers (OFWs) in the Middle East could play a key role in making that happen. During a recent World Economic Forum (WEF) open forum in Davos, Switzerland, President Marcos highlighted that the Philippines welcomes any significant capital-intensive investment, especially now as the country is trying to grow its way out of the debt it has incurred.
Furthermore, President Marcos emphasized that the Philippines was fortunate to have established solid relations with the Middle Eastern countries because of the enormous concentration of OFWs in Gulf states. He also stated that Southeast Asia must regain its pre-pandemic position as a fast-growing economy while retaining the essential elements that brought it to that point before the pandemic.
He also highlighted that “It is up to us as leaders, I think, to be very careful how we direct now the development of the economy because it’s not business as usual. The pandemic changed everything.”
Trade is also an important factor to be considered, especially with the Organization of Petroleum Exporting Countries (OPEC) members’ very expansive and aggressive spending plan for the next few years. President Marcos noted that trade becomes part of the discussion with Arab nations as the Philippines speaks about its planned sovereign wealth fund. The country is looking at the Middle Eastern countries as an example for their success in this area.
According to data from the Philippine Statistics Authority (PSA), Saudi Arabia remained the favorite destination of OFWs in 2020, with around 470,820 OFWs based in the Kingdom. This number was 26.6 percent of the estimated 1.77 million OFWs in 2020. However, the Philippines halted the deployment of new OFWs to KSA in November 2021 due to reported unpaid wages and allegations of abuse.
In September last year, the Department of Migrant Workers (DMW) announced that the Philippines would lift the said year-long ban on November 7, 2022, following bilateral talks on how to improve and protect the welfare of OFWs in KSA. President Marcos highlighted that the Philippines is open to any opportunities that come their way and will take full advantage of them. This includes the potential for increased trade and investments with Arab nations, which could benefit greatly from the Philippines’ large OFW population in the Middle East.
