From CEPA to ‘Pax Silica’: Philippines, UAE drive AI alliance to power Luzon’s 4,000-acre tech hub

Manila: The Philippines and the United Arab Emirates (UAE) are moving beyond traditional trade ties and into what officials describe as a strategic technology partnership, aligning their recently-signed Comprehensive Economic Partnership Agreement (CEPA) with artificial intelligence (AI) development under the emerging “Pax Silica” framework.

During meetings in Abu Dhabi, Ceferino Rodolfo, Undersecretary of the Department of Trade and Industry and managing head of the Board of Investments, met Thani bin Ahmed Al Zeyoudi, the UAE’s Minister for Foreign Trade, to explore how CEPA can support the Philippines’ ambition to build a 4,000-acre AI-native industrial acceleration hub in Luzon in partnership with the US.

New AI-native hub

The planned new hub is near the New Clark City, served by the Clark International Airport, in Pampanga, about an hour by car north of Manila.

The talks follow Manila’s recent accession to the Pax Silica alliance, a US-led initiative aimed at coordinating trusted supply chains for semiconductors, critical minerals and AI infrastructure among partner countries.

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Infrastructure

Both sides highlighted that AI growth depends not only on software and talent, but on hard infrastructure — reliable power, water resources and advanced data processing capacity.

UAE officials shared how the country’s capital-intensive AI and energy systems could complement the Philippines’ strengths in mineral resources, semiconductor manufacturing and a skilled technology workforce.

'AI-native hub'

“There is strong complementarity between Philippine mineral resources, skilled workforce, strong semiconductor and chip manufacturing sector and UAE’s capital-intensive AI infrastructure,” Rodolfo said.

“As we build the Luzon AI-native hub, our partnership under CEPA and the Pax Silica framework ensures that both nations remain at the forefront of the global digital economy.”

Philippine Ambassador Alfonso Ver said joint participation in Pax Silica "strengthens existing agreements, including CEPA and the Investment Promotion and Protection Agreement, effectively elevating the relationship from trade partners to “strategic tech-allies.”

The New Clark City is set to be linked to Manila via a $15.4-billion North-South Commuter Railway, due in December 2027. CRK forms part of the New Clark City (NCC) designed as an alternative to Manila;'s NAIA. NCC focuses on green and smart city, services, high-tech and renewables, with government centres and economic hubs to facilitate long-term investments.

Trade Secretary Cristina Roque said sustained engagement with the UAE reflects Manila’s push under President Ferdinand Marcos Jr. to position the country as a regional hub for AI and advanced technologies.

Rodolfo’s visit also included meetings with UAE energy and high-tech firms and participation in discussions linked to the OECD Critical Minerals Forum, underscoring how minerals, chips and AI are increasingly intertwined in the Philippines’ economic strategy.