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 it is because of our distance from Manila that we always look forward to hearing President Gloria Macapagal-Arroyo’s speech during the closing ceremonies. And we would listen intently to see whether the President would drop a word or two about Mindanao. And over the past years, she has never failed to do so.

Shock absorbers

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 these are our solid banking system and the projected growth in expatriate inflows. It was said that even if the American economy sinks, 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 also offset the slow growth in merchandise exports. In addition, pump-priming will happen in many sectors and industry; more so in agriculture, housing, infrastructure and lending support to small- and medium-sized businesses.

Relationship with Middle East

President Arroyo also said the “Arab engine is up due to the past five years of costly oil. This has led to the construction boom in the Middle East and a surge of remittances.”

What really caught our attention was her statement: “In addition, the fact that the Philippines has a Mindanao close to the heart 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, countries in the Middle East, most notably the Kingdom of Saudi Arabia and United Arab Emirates, have risen to greater heights in terms of investments. However, it was only recently though that Mindanao has started gaining significant access to the Middle Eastern market.

Based on the report of the Bureau of Customs in Davao, the Middle East was the third leading destination of exports from the Davao region, next only to Japan and Malaysia.

Middle Eastern countries imported mainly fresh bananas from the Davao region in September. The exports were worth about $4.893 million with a volume of 17.758 million metric tons. The figure even excluded the bananas imported by the United Arab Emirates, which were valued at $447,521.

Even controversial Iran imported 28.625 million metric tons of goods worth $4.975 million from the Davao region, particularly fresh fruits like papaya and pineapple.

Possible investments

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

Another notable development was the recent visit of a technical team from the Kingdom of Saudi Arabia whose task was to find areas where the country 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 province, to discuss with Governor Corazon N. Malanyaon the possibility of investing in rice and corn production. Governor Malanyaon and Mati City Mayor Marie Michelle Denise Rabat gladly briefed the visitors about the province.

The development should encourage the 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 where they can invest to help the island fully develop its potential.

These countries are known for their help in achieving peace in Mindanao as most of these countries are members of the Organization of the Islamic Conference. 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, handmade toys, gifts and house wares to furniture and furnishings. Mindanao can also be an alternative for medical tourism, cultural adventure and ecotourism.

If plans push through, the Middle East will become one of the best partners of Mindanao not only in business but more importantly in peace and development.

Joji Ilagan Bian is an advocate of the development of Mindanao. She is chairperson of Joji Ilagan Foundation (www.jojiilagancareercenter.com), president of the Philippine Call Centers Alliance and of the Mindanao Tech Voc Schools Association, and Mindanao representative to the Export Development Council. Email comments jojibian2@yahoo.com.

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