Prime Highlights:
- Prime Minister Mark Carney is visiting the U.A.E. to sign a formal investment agreement aimed at strengthening economic ties.
- The visit focuses on expanding partnerships in key sectors including energy, agriculture, infrastructure, and artificial intelligence.
Key Facts:
- Canada-U.A.E. merchandise trade reached $3.4 billion in 2024, marking 50 years of diplomatic relations between the two countries.
- The agreement, a Foreign Investment Promotion and Protection Agreement (FIPA), establishes rules and protections to encourage predictable and secure investment between Canada and the U.A.E.
Background:
Prime Minister Mark Carney is in the United Arab Emirates this week with the goal of signing a formal investment agreement, officials confirmed. The pact, known as a Foreign Investment Promotion and Protection Agreement (FIPA), is designed to create a stable and predictable investment climate between Canada and the U.A.E.
“There’s a deal ready to go,” said a senior government official who spoke on condition of anonymity. Beyond the FIPA, there are expectations for further announcements outlining the next steps in bilateral economic cooperation.
Carney is scheduled to meet U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan on Thursday in Abu Dhabi to discuss opportunities in sectors such as energy, agriculture, infrastructure, and artificial intelligence. He will also engage with the heads of U.A.E. sovereign wealth funds, which have been major global investors.
This trip is part of Carney’s broader strategy to attract billions in foreign investment to Canada and diversify trade partners, particularly following disruptions in Canada-U.S. trade relations. Trade between Canada and the U.A.E. reached $3.4 billion in 2024, marking a milestone year as both countries celebrated 50 years of diplomatic relations.
While some human rights experts have raised concerns about U.A.E.’s international conduct, government officials emphasize that Canada aims to balance investment opportunities with principled engagement. “Canada does not have the luxury of only trading with countries with whom it agrees on everything,” said a government spokesperson.
Carney’s visit comes after a Canadian delegation traveled to the U.A.E. earlier this year and shows Canada’s ongoing efforts to boost economic ties. Experts say agreements like this can lead to bigger trade partnerships, helping Canadian businesses and making the country an attractive place for investment.
