At a Glance
- Canada and the UAE have finalized significant investment and trade agreements following Prime Minister Mark Carney’s visit to Abu Dhabi.
- The UAE committed to investing up to $50 billion in Canada across key sectors like AI, energy, and mining.
- A Foreign Investment Promotion and Protection Agreement (FIPA) was signed, establishing clear rules for Emirati investors in Canada.
- Discussions have begun for a Comprehensive Economic Partnership Agreement (CEPA) aimed at reducing trade barriers and boosting bilateral trade.
- Key areas of focus for collaboration include AI development, clean energy, infrastructure, and data infrastructure.
Canada Secures Major UAE Investment Commitments
Canada has secured a significant investment commitment of up to $50 billion from the United Arab Emirates, following a pivotal multi-day visit by Prime Minister Mark Carney to Abu Dhabi. The agreements, finalized across crucial sectors such as artificial intelligence, energy, and mining, mark a new chapter in bilateral economic relations.
The UAE’s Ministry of Investment officially announced the substantial commitment on Friday, as detailed in a government statement released during the summit. This landmark trip represents the first official visit by a Canadian prime minister in over four decades. It is understood to be part of Canada’s broader strategy to expand its export markets beyond the United States and attract substantial new investments over the next five to ten years.
Prime Minister Carney, who has prioritized attracting foreign capital since assuming office, successfully gained the support of the UAE leadership. During a bilateral meeting with President Sheikh Mohamed bin Zayed Al Nahyan, both leaders signed the Foreign Investment Promotion and Protection Agreement (FIPA), a key step in solidifying future economic ties.
Canada and UAE Forge Pact, Eyeing Broader Trade Deal
The newly signed FIPA agreement lays down the foundational rules for Emirati investors intending to operate within Canada. Its primary objective is to streamline regulatory processes and provide essential legal clarity for businesses considering long-term ventures. These ventures span a diverse range of industries, including engineering, clean technology, data infrastructure, and artificial intelligence.
“Our agreements with the UAE will attract billions of dollars in investments into Canada, open new markets and opportunities for our workers and businesses, and create high-paying careers across the country,” Prime Minister Carney stated following the announcement.
Beyond the FIPA, Prime Minister Carney and President Al Nahyan have officially initiated negotiations for a Comprehensive Economic Partnership Agreement (CEPA). Such an agreement has the potential to significantly reduce tariffs and dismantle regulatory obstacles between the two nations, paving the way for increased trade volumes.
The UAE, boasting a robust economy and a rapidly growing logistics network, is now positioned as a key alternative export destination for various Canadian industries. Sectors such as aerospace, agri-food, and seafood are expected to benefit from expanded market access.
Canada’s Ministry of Trade projects that a CEPA could potentially double the bilateral trade between Canada and the UAE, from the current $3.4 billion to $7 billion over a ten-year period. Historical data from similar agreements with countries like Chile and South Korea indicate such positive outcomes.
Strategic Partnerships on the Horizon
During his visit, Prime Minister Carney engaged in discussions with prominent UAE business leaders. These included heads of sovereign wealth funds and executives from G42, a significant state-linked artificial intelligence firm in the UAE. Abu Dhabi is currently developing what is anticipated to become one of the world’s largest data center hubs, with the collaboration of American tech suppliers. The UAE is actively investing in AI and clean energy initiatives globally through XRG, the international arm of the state oil company ADNOC.
Following the summit, Prime Minister Carney confirmed that the Minister of International Trade, Maninder Sidhu, will lead a business delegation to the UAE in early 2026. This delegation will concentrate on sectors such as AI, infrastructure, agriculture, and energy, identifying specific opportunities for collaboration and investment.
Furthermore, the delegation will actively encourage UAE sovereign wealth funds to visit Canada. The aim is to foster direct connections with the Major Projects Office, with a particular emphasis on opportunities within liquefied natural gas (LNG), critical minerals, and data infrastructure.
In reciprocal engagement, Canada’s pension funds, which collectively manage over $2 trillion, are scheduled to visit the UAE next year. Their objective will be to explore promising long-term investment opportunities within the UAE market.
An increase in direct commercial flights between Canada and the UAE is also anticipated, which will enhance both passenger and cargo traffic, thereby improving overall business logistics and connectivity.
Innovation and Security Collaborations
Several key partnerships were solidified during the Canada-UAE Investment Summit. The prominent AI research institute Mila is set to collaborate with the UAE’s Technology Innovation Institute to advance the development of novel AI systems. This collaboration underscores a shared commitment to pushing the boundaries of artificial intelligence research and application.
In the cybersecurity domain, BlackBerry has entered into a significant agreement with the UAE’s Cyber Security Council. This partnership will likely focus on enhancing digital defense capabilities and addressing emerging cyber threats.
Invest in Canada will work closely with the UAE’s Ministry of Investment to identify and facilitate more large-scale investment deals. This strategic alignment is expected to streamline the process for major cross-border projects.
Prime Minister Carney also took the opportunity during his visit to reiterate Canada’s steadfast support for long-term peace and stability in the Middle East. He emphasized the importance of joint efforts with international partners to maintain regional security.
Building Economic Strength Through Diversification
“This is about building Canada strong,” Prime Minister Carney remarked as the summit concluded. “We’re diversifying our trade, we’re finding new investors, and we’re doing it on our terms.” This sentiment highlights Canada’s proactive approach to economic growth through strategic international partnerships and market diversification.
