Phl-UAE IPPA enters into force

The Philippines and the United Arab Emirates further strengthened their agreement on investment promotion and protection, according to the Board of Investments.

The BOI said the investment promotion and protection agreement (IPPA) entered into by the two countries in June 2022 took effect yesterday.

The agreement covers a wide range of areas such as protection of investments, national treatment, most favored nations treatment, transfers, expropriation and compensation, and procedures for investor-state dispute settlement.

Trade Secretary Alfredo Pascual said the IPPA is a modern, business-friendly and comprehensive agreement that involves investment protection and facilitation, and features continued cooperation between both countries.

“I look forward to the implementation of the agreement, especially as both sides are exploring other possible investments and cooperation in areas like renewable energy, research and development, and skills development,” Pascual said.

Last Nov. 29, the Department of Trade and Industry (DTI) was able to secure the ratification of the agreement from President Marcos.

Trade Undersecretary and BOI managing head Ceferino Rodolfo said the green light from Malacañang paved the way for the IPPA’s entry into force as soon as the Department of Foreign Affairs (DFA) notifies the UAE side.

“On the part of the UAE, they were able to notify us early part of this year that they have gone through the domestic process. So within 30 days from the issuance of the DFA, the IPPA will be enforced,” Rodolfo said.

With the IPPA, Rodolfo said this would already significantly increase the investments coming from the UAE.

“We will see now that maybe by next year, investments coming from the UAE will double,” Rodolfo said earlier.

“Since both sides have already undertaken their respective internal processes necessary for the effectivity of the agreement, it is now time to establish the joint committee on investment for collaboration on investment areas of mutual interest to realize more UAE investments in the Philippines,” Rodolfo added.

Data from the DTI showed that net foreign direct investments from UAE amounted to $2.64 million in 2022.