Canada seeks to finalize a landmark investment deal with the U.A.E., aiming to boost trade, attract major capital and expand cooperation in AI and energy.
Carney Pushes for Canada-U.A.E. Investment Pact During Gulf Visit
Bilateral Focus on Economic Expansion
Prime Minister Mark Carney is travelling to the United Arab Emirates this week to finalize a long-anticipated investment agreement, according to a senior government official who says the deal is “ready to go.” The pact, known as a Foreign Investment Promotion and Protection Agreement (FIPA), would outline clear rules for cross-border investments and offer a stable framework for both countries during uncertain global conditions.
Planned Agreements and Broader Ambitions
The visit is expected to produce more than a single investment framework. Ottawa also plans to launch expedited talks toward a targeted free trade agreement with the U.A.E., focusing on artificial intelligence, aerospace development and labour mobility. Business leaders say FIPAs often serve as a foundation for broader trade arrangements—particularly as nations navigate rising global protectionism.
High-Level Meetings in Abu Dhabi
Carney is scheduled to meet U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi on Thursday, with discussions centered on expanding cooperation in energy, infrastructure, agriculture and advanced technologies such as AI. His itinerary also includes meetings with the heads of major Emirati sovereign wealth funds, which continue to invest heavily worldwide.
Strategic Trade Diversification
The UAE stopover comes ahead of the G20 Leaders’ Summit in Johannesburg. Canadian officials say the prime minister will promote Canada as a reliable destination for large-scale investment, part of a broader strategy to diversify trade after years of tensions with the United States under U.S. tariffs. Analysts argue the U.A.E.’s active sovereign wealth funds offer key opportunities for major Canadian infrastructure and energy projects.
Strengthened Relations After Recent Visits
The trip builds on strengthened diplomatic engagement. The U.A.E.’s deputy prime minister visited Canada in June, and the Dubai Chamber of Commerce opened a new office in Toronto. Bilateral trade reached $2.6 billion in Canadian exports and $800 million in imports in 2024, marking 50 years of diplomatic ties and nearly a decade of negotiations behind the now-pending agreement.
Resource Gaps and Delayed Deals
When asked why previous governments failed to complete the pact, International Trade Minister Maninder Sidhu pointed to a shortage of trade-negotiating capacity. Ottawa has since boosted funding for negotiators, as more countries seek formal economic partnerships with Canada.
Human Rights Concerns Enter the Spotlight
Human rights experts warn that closer ties with the U.A.E. require caution due to allegations the Gulf nation is backing Sudan’s Rapid Support Forces, a paramilitary group accused of atrocities in Darfur. The U.A.E. denies the allegations, which Canada says it has formally noted. Ottawa maintains it continues to press international partners to help end the violence and is providing nearly $80 million in humanitarian aid to Sudan this year.
Balancing Principles and Pragmatism
Critics argue any agreement should include conditions prohibiting support for the RSF. But Canadian officials counter that Canada cannot limit its trade to only countries it fully aligns with, especially in a rapidly shifting global landscape. Business groups say the prime minister’s outreach to major players like India, China and the U.A.E. reflects a pragmatic approach to safeguarding Canada’s economic future.
Canada’s Values Still on the Table
Former trade advisers note that while no partner is “perfect,” Canada can still advance human-rights values through engagement. They add that Canadians have given the newly elected prime minister time to develop his global strategy—but expect clear, measurable outcomes from high-level meetings, particularly those involving major investment opportunities.
