The United Arab Emirates (UAE) and Canada have taken a significant step towards enhancing their bilateral relations by signing a series of trade, investment, and defence agreements. This development occurred during the visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to Ottawa, marking a new chapter in the strategic partnership between the two countries.
A key outcome of this visit is the Comprehensive Economic Partnership Agreement (CEPA), which was finalized in a record 47 days of negotiations. This agreement aims to boost economic cooperation by eliminating or reducing tariffs on over 99 percent of Canada’s current exports to the UAE. It also seeks to address trade barriers and expand access to services, particularly in engineering and environmental industries. Canada anticipates that the CEPA will help double bilateral trade over the next decade as part of its strategy to diversify its international economic partnerships beyond the US market.
The UAE, already Canada’s largest export market in the Middle East, has committed up to $50 billion in investments in Canada. These investments will focus on sectors such as energy, artificial intelligence, critical minerals, and infrastructure. This partnership will build on existing Emirati investments in Canadian industries, including chemicals and logistics, and support the UAE’s broader strategy to expand international trade networks and diversify supply chains.
In addition to the economic agreement, the two countries signed an updated defence cooperation agreement and a memorandum on diplomatic training. They also agreed to begin negotiations on extradition and mutual legal assistance treaties, aiming to transform their relations into a more structured strategic partnership.
Both nations have identified several sectors with strong potential for future cooperation, including critical minerals, food security, artificial intelligence, and infrastructure. Opportunities in critical minerals could see Canada’s natural resources combined with Emirati investment, while Canadian grains, pulses, and seafood may bolster the UAE’s food security. The countries are also exploring collaborations in artificial intelligence, leveraging Canada’s research expertise and energy resources alongside the UAE’s burgeoning technology sector.
Despite these promising developments, further steps are required for full implementation. Canada’s Parliament must ratify the trade agreement, and investment commitments need to be translated into tangible projects. Nevertheless, the strengthened partnership underscores a shared interest in economic diversification, reliable supply chains, and international cooperation amid growing global trade uncertainties.