TLDR
- The UAE has committed to investing up to $50 billion in Canada, focusing on AI, energy, and mining.
- The investment agreement follows Prime Minister Mark Carney’s visit to the UAE, marking the first trip by a Canadian prime minister in over 40 years.
- Canada and the UAE signed the Foreign Investment Promotion and Protection Agreement (FIPA) to provide clear rules for Emirati investors in Canada.
- A Comprehensive Economic Partnership Agreement (CEPA) is being negotiated to reduce trade barriers and increase trade between Canada and the UAE.
- Prime Minister Carney met with UAE business leaders, including G42 executives, to discuss opportunities in AI and clean energy.
The UAE has agreed to invest up to $50 billion in Canada following a visit by Prime Minister Mark Carney. The deals finalized during the visit cover sectors such as artificial intelligence (AI), energy, and mining. This marks the first official trip by a Canadian prime minister to the UAE in over 40 years.
The UAE Ministry of Investment announced the investment agreement. The deal is part of Canada’s effort to diversify its exports beyond the U.S. Carney’s focus on attracting foreign capital has led to a strong partnership between Canada and the UAE.
Investment Agreements Secure Long-Term Commitments
Prime Minister Carney and UAE President Sheikh Mohamed bin Zayed Al Nahyan signed a Foreign Investment Promotion and Protection Agreement (FIPA). This agreement sets clear rules for Emirati investors in Canada, eliminating regulatory obstacles. Carney expressed confidence, stating, “Our agreements with the UAE will attract billions of dollars in investments into Canada.”
FIPA aims to provide legal clarity for Emirati companies looking to engage in long-term projects in various sectors. These include engineering, clean technology, AI, and data infrastructure. As part of the deals, Carney and bin Zayed began formal negotiations for a Comprehensive Economic Partnership Agreement (CEPA).
The CEPA could reduce tariffs and regulatory barriers between the two countries. It is expected that Canada-UAE trade will double from $3.4 billion to $7 billion over the next decade. Similar agreements with countries like Chile and South Korea have achieved similar results.
UAE’s Growing Role in Canada’s Trade Plans
The UAE, with its $700 billion economy, is becoming an increasingly important trade partner for Canada. Aerospace, agri-food, and seafood are seen as key export sectors for Canada to target. The UAE is a vital logistics hub, offering new markets for Canadian industries.
During the visit, Carney met with senior UAE business leaders. He discussed future opportunities with executives from firms like G42, a major UAE-based AI company. Canada’s Minister of International Trade, Maninder Sidhu, will lead a business delegation to the UAE in 2026 to focus on AI, infrastructure, and energy.
This collaboration also includes new partnerships such as the one between AI research institute Mila and the UAE’s Technology Innovation Institute. Other deals, including a cybersecurity partnership between BlackBerry and the UAE’s Cyber Security Council, were also finalized. Carney highlighted the importance of these agreements in strengthening Canada’s global position.
