Despite escalating tensions in the Middle East, the Board of Investments (BOI) is pressing ahead with investor engagements in the region, as firms signal continued interest in Philippine projects and new opportunities emerge from the country’s inclusion in the United States (US)-led Pax Silica Initiative.

Department of Trade and Industry (DTI) Undersecretary and BOI Managing Head Ceferino S. Rodolfo told reporters last Friday, April 24, that he will visit the United Arab Emirates (UAE), Qatar, and Tel Aviv in Israel, next week to maintain close coordination with investors who are proceeding with their planned investments here despite geopolitical risks.

Rodolfo said that while there were initial concerns that Middle Eastern investors might pull back, the BOI sees continued opportunity as some capital may be redirected or expanded into the Philippines amid regional uncertainty.

He cited Masdar as an example, noting that the UAE state-owned firm is maintaining its commitment to two solar projects in the country. These projects were previously held by French giant TotalEnergies, which last year exited its local renewable energy (RE) portfolio.

Still, Rodolfo acknowledged that the broader investment climate remains cautious, with potential investors adopting a wait-and-see stance amid global uncertainty. “In general, the environment is that investors are slightly pausing,” he said.

However, Rodolfo said interest remains strong in what he described as “transformative” sectors, such as RE and electric vehicles (EVs).

The BOI chief said investments in these industries are being fast-tracked as countries and firms position themselves for long-term resilience.

Rodolfo also disclosed that two countries—one in East Asia and another in the Americas—as well as five companies involved in artificial intelligence (AI) manufacturing, transition energy, and infrastructure have reached out to the BOI, citing the significance of Pax Silica in shaping their investment plans.

Pax Silica aims to strengthen secure and resilient supply chains for critical technologies, particularly semiconductors and advanced manufacturing inputs, by deepening cooperation among allied economies. The Philippines’ participation is seen as a potential gateway to higher-value investments in electronics, industrial manufacturing, and digital infrastructure.

In a presentation before investors in San Francisco in the US last April 20, Rodolfo highlighted that the Philippines and the US are set to launch the nearly 1,619-hectare (ha), first-of-its-kind AI-native industrial acceleration hub at New Clark City in Tarlac province.

The planned industrial hub is expected to facilitate coordination for critical mineral supply chain initiatives; facilitate joint strategic industrial planning and infrastructure development within the Luzon Economic Corridor (LEC); coordinate investment and private capital mobilization for projects; as well as support workforce development, technology transfer, and capacity-building activities.

Rodolfo told US investors that the soon-to-rise economic security zone is expected to host a range of high-value activities, including critical mineral extraction and processing of cobalt, copper, nickel, and zinc; semiconductor design, fabrication, and advanced packaging; AI infrastructure and high-performance computing centers; as well as energy and data infrastructure, including power systems and fiber-optic connectivity. The hub is also expected to support logistics and supply chain security systems to ensure the resilient movement of critical technology components.

Earlier this month, DTI Secretary Ma. Cristina A. Roque said the government is prepared to recalibrate its investment target for this year as the Middle East conflict weighs on global investor sentiment.

Roque had cautioned that while BOI approvals surged in the first two months of the year, growth may moderate in the coming months. The latest BOI data showed that its approved projects jumped 338 percent year-on-year to 35 projects worth ₱47 billion from January to February.

Rodolfo said March figures are not yet available as of Friday.

For 2026, the BOI is targeting ₱1 trillion in investment approvals, significantly lower than the ₱1.56 trillion recorded in 2025. The reduced goal reflects earlier expectations of a slowdown in RE investments, although Roque still expects the sector to remain a major contributor to this year’s pipeline.