The United Arab Emirates and Canada have deepened their strategic relationship through a series of significant agreements in trade, investment, and defense. The landmark agreements were signed during the visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to Ottawa, marking a pivotal moment in the bilateral ties between the two nations.
Central to these agreements is the Comprehensive Economic Partnership Agreement (CEPA), which was swiftly negotiated and concluded in just 47 days, a record for both countries. This trade agreement aims to boost economic ties by eliminating or reducing tariffs on over 99 percent of Canadian exports to the UAE, thereby enhancing access to various service sectors, including engineering and environmental industries.
In addition to the CEPA, the two nations updated their defense cooperation agreement and signed a memorandum on diplomatic training. They also committed to begin negotiations on extradition and mutual legal assistance treaties, further solidifying their partnership.
Canada anticipates that the CEPA will enable it to double its bilateral trade with the UAE over the next decade, as part of its strategy to diversify international economic partnerships beyond the U.S. market. Currently, the UAE stands as Canada’s largest export market in the Middle East, highlighting the significance of this cooperation.
The UAE has pledged up to $50 billion in investments in Canada, focusing on sectors such as energy, artificial intelligence, critical minerals, and infrastructure. This investment complements existing Emirati ventures in Canada, particularly in the chemicals and logistics industries.
Both countries have identified key areas for potential collaboration, including critical minerals, food security, artificial intelligence, and infrastructure. The cooperation in critical minerals aims to leverage Canada’s resources with Emirati investments in processing and industrial development, while Canadian agricultural products could enhance the UAE’s food security.
Despite the promising agreements, further steps are needed for full implementation. The trade agreement requires ratification by Canada’s Parliament, and investment commitments must translate into tangible projects. This strengthened partnership reflects a shared interest in economic diversification and reliable supply chains amid global trade uncertainties.