PH, UAE AI Deal Could Power Luzon’s Next Tech Boom

The Philippines and UAE are deepening cooperation in trade, artificial intelligence, renewable energy, and digital infrastructure. Through CEPA and the Pax Silica framework, both countries aim to support a planned 4,000-acre AI-native industrial hub in Luzon, opening fresh opportunities in technology, investment, and advanced manufacturing.

By Staff Writer
May 12, 2026 12:51 PM
PH, UAE AI Deal Could Power Luzon’s Next Tech Boom

PHILIPPINES: The Philippines and the United Arab Emirates are taking their economic partnership into a new phase, with both countries looking at artificial intelligence, data centers, renewable energy, and advanced manufacturing as future growth areas.

The discussions follow the recently signed Philippines-UAE Comprehensive Economic Partnership Agreement, or CEPA, which is meant to improve trade and investment between the two countries. Now, officials are exploring how that agreement can support the Philippines’ bigger plan to become part of the global AI and semiconductor supply chain.

Image used for illustration purposes only.

CEPA Becomes More Than a Trade Deal

In Abu Dhabi, Department of Trade and Industry Undersecretary and Board of Investments Managing Head Ceferino Rodolfo met with UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi to discuss new areas of cooperation.

The talks focused on how CEPA can go beyond traditional trade. Instead of only looking at goods and services, both sides are now connecting the agreement to technology, energy, and digital infrastructure.

For the Philippines, this could help bring in foreign investment for high-value industries. For the UAE, it opens another route to support AI-linked infrastructure in Asia.

Luzon Hub Seen as a Future AI Zone

A major part of the talks is the planned 4,000-acre AI-native industrial acceleration hub in Luzon. The project is expected to be located near New Clark City and Clark International Airport in Pampanga, making it close to key transport and investment zones.

The hub is linked to Pax Silica, a US-led initiative focused on trusted supply chains for semiconductors, AI infrastructure, critical minerals, computing, and advanced manufacturing. Reuters reported that the Philippines became the 13th country to join the initiative.

UAE Firms Eyed for Energy and Data Support

The Philippines is also courting UAE companies such as Masdar and DAMAC Digital for possible support in renewable energy and data center development. These areas are important because AI systems need large computing power and stable energy supply.

Rodolfo said the Luzon AI-native hub can combine UAE renewable energy expertise with data center capabilities for next-generation manufacturing. This points to a future where factories, digital systems, and energy networks work together.

Gio

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