MANILA -The Philippines has signed an agreement with the United Arab Emirates (UAE) on bolstering their economic alliance on digital infrastructure development, a move that will include the development of new high-capacity data centers.
The Department of Trade and Industry (DTI) on Friday said Trade Secretary Alfredo E. Pascual and UAE Minister of Investment Minister of Investment Mohamed Hassan Alsuwaidi signed a Memorandum of Understanding (MOU) last Nov 30.
“This MOU serves as a framework for a stronger alliance of both countries in strengthening bilateral ties, particularly in the digital infrastructure sector,” Pascual said in a statement.
Pascual said the data center projects to be developed under the MOU were expected to have a total capacity of up to 500 megawatts.
“Through the development of these centers, the Philippines is poised to thrive further in the global digital economy as these will be critical for storing essential data and running applications aligned with the country’s vision of a robust growth in the digital ecosystem
He added that another key aspect of the agreement is focused on building relationships among public and private sector organizations in the UAE and in the Philippines.
The agreement will also facilitate knowledge sharing and provide incentives for relevant initiatives, added the DTI chief.
“This transformative alliance exemplifies the country’s unwavering commitment to embracing innovation and fostering sustainable economic growth to facilitate the integration of the Philippines’ digital infrastructure into the global digital economy,” Pascual said.
The announcement of the agreement comes a day after the Swiss-based International Institute for Management Development (IMD) released the results of its annual report measuring the digital competitiveness of 64 countries.
In the said report, the Philippines’ ranking slipped by three place to the 59th spot, falling behind several of its peers in the Association of Southeast Asian Nations (Asean) as it scored lower in areas such as talent, training and education, and regulatory framework, among others.
READ: PH slips 3 places in digital competitiveness ranking
The Philippines saw the biggest declines in the sub-factors included in the future readiness pillar, with its rank in adaptive attitudes falling from the 58th to the 59th place, business agility from the 45th to the 50th place, and information technology integration from 57th to the 60th spot.