Why Gulf investors should look to Southeast Asia

Strong growth in recent years has enhanced the profitability of blue-chip companies in the Philippines. Closely controlled family corporations and conglomerates have thrived on the back of robust spending by a 100 million plus consumer market, fuelled by remittances, business process outsourcing and economic growth expansion with a reach well beyond traditional urban areas.
With the easing of monetary policy, Philippine companies continue to march toward expansion and growth aided by domestic liquidity. Catalysed by retained profits and access to capital, they continue to reinforce their position in the market and are actively pursuing international expansion opportunities, primarily in Southeast Asia.
As the country's business landscape evolves to become more global, digital and knowledge centric, companies in the Philippines have realised that adapting to this shift will require them to be more agile and innovative, to successfully compete both nationally and internationally. This provides an unrivalled opportunity for Gulf investors, in particular, to capitalise on the changing economic landscape
With Asia being an emerging haven for foreign direct investment (FDI), the Philippines faces healthy competition amongst other neighbouring countries like Vietnam and Indonesia that rank significantly higher in attracting investment, according to the World Bank Doing Business report, with the Philippines ranking 124th out 190 countries.
Recognising the challenges that foreign investors face, President Rodrigo Duterte has taken 'ease of doing business' as a top priority, offering strong domestic policies and regulations to enhance the competitiveness of new enterprises and industries.
Nevertheless, as with any emerging economy, it will take time for significant improvements to materialise. Gulf investors interested in pursuing opportunities in the Philippines would therefore benefit from teaming up with a Filipino partner, who will be able to help them navigate the risks and challenges involved in entering, identifying and harvesting investment opportunities and create successful synergies between the two countries.
While Gulf investors are not entirely new to the Philippines - Saudi Aramco and Kingdom Holding were once invested in the country, with DP World operating one of Manila's major ports - the potential for enhanced engagement will likely be more compelling this time around, given what Gulf investors can bring to the table.
This approach is best illustrated by two compelling narratives of success that have emanated from here in the region. The first is the story of Emirates Airlines, which His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President & Prime Minister and Ruler of Dubai, wonderfully elucidates in the 37th chapter of his book, Qissati.
His Highness writes: "We had six months to launch the new airline. We rented two planes from Pakistan International Airlines and worked on them. The working team asked me to give them special privileges to protect the airline from competition, but I said the policy of open sky would remain. Today, Emirates Airlines has been recognised as the best airline several times and continues to make profits."
The second is the story of the Abu Dhabi United Group's investment in Manchester City FC, then a modest club acquired by His Highness Sheikh Mansour bin Zayed Al Nahyan. Under the leadership of Chairman H.E. Khaldoon Al Mubarak, the investment by Abu Dhabi transformed Manchester City FC into a multi-titled champion in a relatively short space of time through its vision to install the right team and encourage a winning mindset.
These are sterling examples of how visionary leadership from the Gulf have resulted into world-class outcomes competing not just with the best in their own markets but also with the best of the world.
To achieve these results, Gulf leaders deployed more than just capital to achieve their vision of success. The fundamental driving force is the integration of other factors beyond capital - connections and competencies.
Over the past fifty years, Gulf institutions have built a reputation for bringing more than just their capital - they've become a primary connector in matching international opportunities from both East and West, creating sustained success.
Beyond capital, building and localising competencies has been key to achieving prolonged excellence in the Middle East. Gulf institutions have been able to bring best in class elements from across the world to create an unrivalled set of competencies in people, mindsets, philosophies and ways of working.
For Philippine companies to truly 'go global', having a Gulf-based investor with the 3Cs approach is a compelling value proposition. With the right investment partner, Filipino companies can thrive and transform to world-class standards. As the Philippine business landscape continues to evolve, expect significant opportunities for Gulf investors to participate and team up with local champions.
Mark P Serrano is the founder and managing director of Malia Prime Advisory