Manila and Muscat Move to Cement Investment Ties With Landmark Bilateral Treaties
MANILA—The Philippines and the Sultanate of Oman are advancing toward the conclusion of two significant economic accords that officials on both sides say could reshape the trajectory of bilateral trade and investment, following a high-level diplomatic mission to Muscat this week.
Negotiators are seeking to finalize an Investment Promotion and Protection Agreement and a companion treaty to prevent double taxation, instruments designed to provide legal certainty for investors and remove long-standing fiscal frictions. The talks reached a decisive stage during the second Oman–Cebu Investment Forum on February 9, a gathering that senior officials described as marking a shift from exploratory diplomacy to deal-making with tangible commercial consequences.
The discussions were led by Philippine Foreign Affairs Secretary Maria Theresa Lazaro and Oman’s foreign minister, Sayyid Badr bin Hamad Al Busaidi, reflecting a coordinated push by both governments to anchor economic cooperation in binding, rules-based frameworks. Diplomats familiar with the negotiations said the tone of the meetings suggested a shared recognition that geopolitical fragmentation and volatile capital flows have elevated the importance of predictable bilateral arrangements.
For Manila, the proposed treaties are aimed squarely at attracting Gulf capital into priority sectors of the Philippine economy, particularly renewable energy, transport infrastructure and digital services. The country has positioned itself as a growth story in Southeast Asia, supported by a young workforce, rising consumer demand and a reform agenda intended to lower barriers to foreign investment. Officials argue that Oman, with its deep pools of capital and increasing appetite for overseas diversification, represents an underutilized but strategic partner.
Oman’s interest, in turn, is driven by its ambition to reduce reliance on hydrocarbons and expand its economic footprint abroad. The Sultanate’s “Vision 2040” strategy emphasizes outward investment, industrial upgrading and deeper integration with fast-growing regions. Southeast Asia, with its expanding middle class and increasingly interconnected markets, has emerged as a natural destination. Philippine officials say Muscat sees the archipelago not only as a market in its own right but also as a gateway into the broader Asean bloc.
Ms. Lazaro said during her visit that the Philippine government was prepared to offer Omani investors a more predictable and incentive-driven environment, underscoring that legal clarity would be central to the investment protection pact. She identified the digital economy, data infrastructure and the development of critical minerals as areas where cooperation could move quickly from memorandum to execution. Such sectors, she noted, align with Manila’s efforts to climb global value chains and reduce dependence on imported inputs.
The diplomatic mission carried symbolic weight as well. Ms. Lazaro delivered a personal communication from President Ferdinand R. Marcos Jr. to Sultan Haitham bin Tarik, a gesture officials said was intended to elevate the talks beyond routine engagement and signal political commitment at the highest level. Philippine diplomats describe the outreach as part of a broader recalibration of Manila’s Middle East policy, which seeks to balance labor ties with deeper economic partnerships.
The scope of cooperation under discussion extends beyond capital flows. Both governments have identified food security and supply-chain resilience as priority areas, reflecting shared exposure to global price swings and logistical disruptions. Agriculture, fisheries and logistics feature prominently in the agenda, with officials exploring institutional partnerships that could stabilize supply and improve efficiency. For the Philippines, a major food importer, such arrangements carry strategic importance as climate risks and geopolitical tensions complicate sourcing.
These initiatives build on a year of stepped-up engagement. In July 2025, the two countries signed a mutual visa exemption agreement for holders of diplomatic and service passports, easing travel for officials and facilitating more frequent exchanges. Business groups on both sides say the measure has already improved coordination, laying the groundwork for the more ambitious economic frameworks now under negotiation.
Labor migration remains a cornerstone of the relationship. Mr. Al Busaidi praised the estimated 50,000 Filipinos working in Oman, describing them as integral to the Sultanate’s economy and social fabric. Filipino workers are employed across healthcare, engineering, maritime services and domestic sectors, and their remittances form an important pillar of the Philippines’ external accounts. Manila has consistently framed the protection of overseas workers as a key consideration in its foreign policy.
Humanitarian cooperation has further reinforced mutual trust. Ms. Lazaro expressed gratitude for Oman’s recent assistance in the repatriation of Filipino seafarers from the vessels MV Galaxy Leader and MV Eternity Sea, an episode Philippine officials cite as evidence of Muscat’s reliability as a partner during crises affecting migrant workers. Such actions, diplomats say, have added a layer of goodwill that now underpins the economic talks.
Attention is now turning to the technical fine print. Working-level officials are expected to spend the coming months refining provisions on dispute resolution, tax treatment and investment safeguards—areas that often prove contentious but are critical to investor confidence. While the negotiations are complex, officials on both sides said they were cautiously optimistic that the treaties could be signed before year’s end, subject to domestic approval processes.
If ratified, the agreements would position Oman as a key conduit for Philippine commercial interests in the Middle East, while reinforcing the Philippines’ role as a strategic entry point for Omani capital into the Association of Southeast Asian Nations. At a time when companies and governments alike are seeking to hedge against global uncertainty, policymakers in Manila and Muscat are betting that durable bilateral rules can provide a measure of stability—and unlock new avenues for growth. ©️KuryenteNews