The UAE signed a USD 50 bn investment framework with Canada, targeting sectors like AI, logistics, and mining, according to a statement. The move was announced during Canadian Prime Minister Mark Carney’s visit to Abu Dhabi.

DATA POINT- The UAE’s foreign direct investments in Canada stood at USD 8.8 bn last year, during which Canada invested USD 242 mn in the Emirates.

ICYMI- Earlier in the visit, the two sides inked an investment protection and promotion agreement, aimed at setting out clear rules for Canadian firms to expand in the UAE. The two countries also launched trade talks during the visit, targeting UAE entry for Canadian firms specializing in engineering, agrifood, aerospace, and seafood, and potentially boosting bilateral trade to USD 7 bn within 10 years — up from USD 3.4 bn currently.

Other agreements inked during the visit:

  • Montreal’s AI research institute Mila partnered with the Technology Innovation Institute to advance research on AI architecture;
  • BlackBerry teamed up with the Cyber Security Council to strengthen cyber cooperation and infrastructure;
  • Invest in Canada and the Investment Ministry agreed to identify and explore large-scale investment windows in Canada.

Next up: Canada’s International Trade Minister Maninder Sidhu will lead a business delegation to the UAE early next year to encourage Emirati investors to explore prospects in Canada through its Major Projects Office, including in LNG, critical minerals, ports, data infrastructure, AI, and agriculture. Canadian pension funds — which manage USD 2 tn — will also travel to the UAE in 2026 to pursue long-term investments and partnerships and Emirati sovereign wealth funds will visit Canada. The two countries are also increasing the number of flights operating between them.

Canada pivots away from US: The Canadian government is aiming to double non-US exports over 10 years and bring in USD 1 tn in new investments in five years. The US is Canada’s largest trading partner, with over USD 909.1 bn traded last year, though trade talks over lowering US-imposed tariffs have stalled after US President Donald Trump took offense to an anti-levy advertisement. Canada isn’t in a rush to restart talks as it pushed ahead with forging new trade alliances.

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