MINDANAO CLOSE TO THE HEARTS OF MIDDLE EAST

The Mindanao Chambers of Commerce sent a full delegation of businessmen representing all the major cities and provinces of the island to the recently concluded 34th Philippine Business Conference held in Manila Hotel. Perhaps, because of our distance from Manila; it is always with great anticipation that we look forward to hearing Pres. Arroyo’s speech during the closing ceremonies. And we would listen intently whether the President would drop a word or two about Mindanao. And for the past many years ; she never fails to do so.

Shock Absorbers of the Economy

This year her speech focused on the measures being undertaken by the country to cushion the impact of the recession in the United States. She elaborated that the Philippines has a number of shock absorbers. Among them are our solid banking system ; our projected expatriate inflows was 10% growth; but actual growth so far is 18%. Even if the American economy would sink, the expatriates in that part of the world are in sectors that are less sensitive to recession . These are the teachers, nurses, information technology related workers and caregivers.
The Business Process Outsourcing (BPO) sector will balance off the slow growth in merchandise exports. In addition, pump priming will happen in many sectors and industry ; more so in agriculture, housing, infrastructure, lending support to small and medium sized businesses.

Middle East Relationship to Mindanao

Pres. Arroyo said that the “ Arab engine is up due to the past five years of costly oil. This is has led to the construction boom in the Middle East and a surge of remittances.
What really caught our attention was when she said “, In addition, the fact that the Philippines has a Mindanao close to the hearts of the Middle East, opens up opportunities not only for Mindanao but for the entire country.”

One of the markets that Mindanao has not fully developed is the Middle East, with its countries known not only for their “black gold” but also for their modern infrastructure facilities.

Opportunities for Mindanao

In recent years, the Middle East, most notably the Kingdom of Saudi Arabia and Dubai, has risen to greater heights in terms of investments. However, it was only recently though that Mindanao has slowly gained access to the Middle East markets.
Based on the report of the Bureau of Customs in Davao, the Middle East, in September, collectively brought about $5.763 million in goods from the region, the third among the top 10 countries that were destinations of exports from the region, next only to Japan and Malaysia.

For the Middle East, the bulk of its imports from the Davao Region during the period was fresh bananas with a value of $4.893 million with a volume of 17.758 million metric tons. The figure even excluded the banana imported by the United Arab Emirates which had a value of $447,521.

Even the controversial Iran rose to the fifth position with a value of $4.975 million, or 28.625 million metric tons of goods from the Davao Region, particularly fresh fruits like papaya and pineapple.

The figures would have been bigger had the figures from other regions were available. Nevertheless, the figures were already indicative that the Middle East markets have started taking notice of Mindanao as a big producer of products that its people need particularly as a supplier of food and fruits.

POSSIBLE INVESTMENTS FOR PEACE

Another notable development was the visit of a technical team from the Kingdom of Saudi Arabia whose task was to find areas where they can invest. The seven member team, headed by Ahmed M. AlSadhan of the kingdom’s Ministry of Commerce and Industry, arrived in Davao City late last month. They proceeded to Mati City, the capital of Davao Oriental, to discuss with Gov. Corazon N. Malanyaon the possibility of investing in rice and corn production. Gov. Malanyaon and Mati City Mayor Marie Michelle Denise Rabat gladly briefed the visitors about the province.

The development is one good start for people of Mindanao, particularly its leaders, to consider looking into intensifying trade between the island and the Middle East. People in Mindanao, particularly its local government and business leaders, should start discussing with leaders of the countries within the Middle East region on where they can invest to help the island fully develop its potentials..

Known for their help in achieving peace in Mindanao as most of these countries are members of the Organization of Islamic Conference(OIC) . This is the body that has facilitated peace talks between the Moro rebel groups and the government. I believe they are also interested in helping Mindanao develop into one big producer of the products that they will need – from food, hand made toys, gifts and house wares, furniture’s and furnishings and even in the area of medical , cultural adventure and eco-tourism.

Middle East would be one of the best trading partners of Mindanao not only in business but more importantly in peace and development.

(Joji Ilagan Bian is a strong and respected advocate for the development of the region. She is Chair of Joji Ilagan Foundation ( www.jojiilagancareercenter.com) ; President , Phil. Call Centers Alliance and Mindanao Tech Voc Schools Association; Mindanao Rep, Export Development Council. Email comments jojibian2@yahoo.com)