Manila and Muscat move to cement investment ties with landmark bilateral treaties
The Philippines and the Sultanate of Oman are moving to conclude two far-reaching economic treaties intended to deepen bilateral investment flows and anchor commercial relations within a more robust legal framework, following a high-level diplomatic engagement in Muscat this week.
At the centre of the negotiations are an Investment Promotion and Protection Agreement (IPPA) and a separate treaty aimed at the avoidance of double taxation—two instruments that policymakers on both sides regard as essential for unlocking large-scale, long-term capital commitments. Talks reached a decisive phase during the second Oman–Cebu Investment Forum on February 9, signalling a shift from exploratory dialogue toward the execution of concrete industrial and financial projects.
The discussions were led by Philippine foreign secretary Maria Theresa Lazaro and her Omani counterpart Sayyid Badr bin Hamad Al Busaidi, whose meetings underscored the growing convergence between the two governments’ economic priorities. Officials familiar with the talks said the tone reflected not only diplomatic warmth but also a shared urgency to translate goodwill into enforceable commitments at a time of heightened global uncertainty.
For Manila, the proposed agreements are designed to provide a predictable and transparent pathway for Gulf capital seeking exposure to one of Asia’s faster-growing economies. The Philippines has emerged as an increasingly attractive destination for foreign investment, buoyed by demographic momentum, rising domestic consumption and an aggressive push to modernise infrastructure. Officials see Oman as a strategic partner capable of supplying patient capital for sectors that require long gestation periods, including renewable energy, transport networks and digital infrastructure.
Muscat, for its part, views the partnership as an avenue to diversify investment destinations beyond traditional markets, in line with its long-term economic reform agenda. Oman’s “Vision 2040” programme prioritises reduced dependence on hydrocarbons and a greater outward orientation for state-linked capital and private enterprises alike. Southeast Asia—home to rapidly expanding middle-class populations and deepening regional integration—has become an increasingly compelling target.
Ms Lazaro said during the visit that the Philippine government was prepared to offer a more incentivised and rules-based environment for Omani investors, stressing that clarity and legal certainty would be central to the proposed IPPA. She pointed to opportunities in the digital economy, data infrastructure and the responsible development of critical minerals, areas where Manila is seeking both capital and technical partnerships to support its industrial ambitions.
Her visit also carried a strong political dimension. Ms Lazaro delivered a personal message from President Ferdinand R. Marcos Jr. to Sultan Haitham bin Tarik, reaffirming the strategic importance the Philippine leadership attaches to relations with the Middle East. Diplomats say the communication was intended to elevate economic cooperation to the level of a long-term strategic partnership, rather than a series of ad hoc commercial exchanges.
Beyond investment and taxation, the bilateral agenda has broadened to encompass food security and supply-chain resilience, reflecting shared vulnerabilities to global price shocks and climate-related disruptions. Agriculture, fisheries and logistics have been identified as priority areas for cooperation, with officials exploring institutional partnerships that could stabilise supply and enhance value-chain efficiency. For the Philippines, a major food importer, diversification of sourcing and logistics routes has taken on greater urgency amid volatile global markets.
These initiatives build on a year of intensified diplomatic engagement. In July 2025, the two countries signed a mutual visa exemption agreement for holders of diplomatic and service passports, a move that officials say has facilitated more frequent exchanges between policymakers and business delegations. The latest talks suggest an ambition to move well beyond facilitation measures toward binding economic frameworks.
Labour migration and humanitarian cooperation remain a central pillar of the relationship. Mr Al Busaidi paid tribute to the estimated 50,000 Filipinos living and working in Oman, describing their contribution to the Sultanate’s economy and social life as indispensable. The Filipino workforce spans healthcare, engineering, maritime services and domestic work, and remittances from the Gulf remain a significant source of foreign exchange for Manila.
Recent cooperation during regional crises has further strengthened mutual trust. Ms Lazaro formally thanked the Omani government for its assistance in the repatriation of Filipino seafarers from the vessels MV Galaxy Leader and MV Eternity Sea, an episode that Philippine officials cite as evidence of Oman’s reliability as a partner during emergencies affecting overseas workers.
Working-level officials are now tasked with refining the technical provisions of both treaties, including dispute-resolution mechanisms, tax definitions and investment safeguards. While the negotiations remain complex, diplomats on both sides expressed confidence that the agreements could be signed before the end of the year, subject to domestic approval processes.
If concluded and ratified, the treaties would reposition Oman as a principal gateway for Philippine commercial interests in the Middle East, while reinforcing the Philippines’ role as a strategic entry point for Omani capital into Association of Southeast Asian Nations. In an era marked by geopolitical fragmentation and shifting supply chains, officials in both capitals see the initiative as a calculated effort to lock in stability—and opportunity—through rules-based economic integration. ©️KuryenteNews