Prime Minister Mark Carney ended a high-stakes visit to Abu Dhabi after signing a major investment-protection deal with the UAE.
The Deal and Its Scope
During the visit, Carney and UAE leaders signed a Foreign Investment Promotion and Protection Agreement. The pact creates predictable rules for investors and encourages long-term capital flows. Moreover, Ottawa says the UAE will commit up to US$50 billion, or about CA$70 billion, in strategic investments.
Strategic Sectors Targeted
These investments will focus on critical minerals, energy, artificial intelligence, and port infrastructure. Carney stressed that these sectors support Canada’s green-technology shift and long-term economic transformation.
Trade Talks Launched
Alongside the investment pact, Canada and the UAE launched negotiations for a Comprehensive Economic Partnership Agreement. If completed, the pact will reduce tariffs, simplify trade rules, and open new markets for Canadian exports. These include agri-food, aerospace, seafood, and technology.
Carney’s Vision for Economic Diversification
Carney described the visit as a turning point for Canada. He aims to deepen ties with non-U.S. partners like the UAE and reduce Canada’s economic dependence on the United States. He also emphasized building a new chapter in Canada’s economic diplomacy.
Political and Ethical Concerns
However, the trip sparked criticism. Media access to key meetings remained tightly controlled. Critics also raised concerns about the UAE’s human rights record, especially regarding alleged support for militias in Sudan.
Long-Term Impact
If successful, the pact could double Canada–UAE trade from about $3.4 billion to $7 billion within a decade. It could also boost Canadian investment in technology and infrastructure, supported by UAE sovereign wealth funds.
