DUBAI, (Reuters) – The Philippines and United Arab Emirates were on Tuesday identified as Manila’s most important trade partners in the Middle East. A joint statement by the Philippines government stated that negotiations had begun on a bilateral trade and investment pact.

There are thousands of Filipinos who work in UAE and each year send home over $1 billion in remittances.

The statement stated that Ramon Lopez, Philippines Trade and Industry Secretary, and Thani Al Zeyoudi, Emirati Minister for Foreign Trade signed the joint declaration to begin Comprehensive Economic Partnership Agreement negotiations.

This was in the wake of talks between the sides on an Investment Promotion and Protection Agreement.

“These initiatives are expected to boost trade and investments between two countries, leading to more diversified economic activities, development of new industries, employment generation, and higher consumer spending as we partner for shared prosperity,” Lopez said.

“The Philippines may serve as a UAE’s strategic hub for the Southeast Asian region, as economic activities continue to shift to Asia.”

According to the statement, bilateral trade between these two countries grew by 35.7% last year to $951 millions.

CEPA Agreements are sought by UAE to several countries such as India, Turkey and South Korea.