Canada and UAE Strengthen Strategic Partnership with New Investment and Trade Agreements

Abu Dhabi – November 2025 | EcoPulse24. The Canada-UAE relations have entered a new phase of strategic partnership, celebrating 50 years of diplomatic relations and intensifying cooperation in investment, energy, innovation, food security, and advanced technology.

This political and economic momentum follows the historic visit of Canadian Prime Minister Mark Carney to the UAE in November 2025, the first by a Canadian Prime Minister in over four decades. The two sides issued a joint statement reaffirming their commitment to expanding trade and investment cooperation, enhancing regional stability, and developing partnerships in innovation, energy, and food security.

The economic relations have always been a cornerstone, and the signing of the Joint Cooperation Committee Memorandum in July 2022 established a comprehensive institutional framework for collaboration in trade, investment, defense, energy, and agriculture.

A new memorandum was signed in October 2025 to enhance cooperation in artificial intelligence and data center infrastructure, reflecting a mutual recognition of the importance of technology as a long-term growth driver. The trade volume between the two countries reached CAD 3.4 billion in 2024, with CAD 2.6 billion in Canadian exports, showing a 24% annual increase, indicating a sustainable upward trajectory in trade relations. Key Canadian exports included aerospace products, automobiles and parts, and agricultural products, while Canada’s imports from the UAE mainly comprised iron, steel, and aluminum products.

The UAE’s sovereign funds, managing over USD 2 trillion, play a pivotal role in directing investments towards non-oil sectors, with Canada attracting significant portions in energy, infrastructure, technology, and healthcare. During the Prime Minister's visit, both sides signed the Foreign Investment Promotion and Protection Agreement (FIPA), providing a clearer and more stable legal environment for investors, paving the way for negotiations on the Comprehensive Economic Partnership Agreement (CEPA), which could elevate trade relations to a bilateral free trade agreement. The cooperation extends beyond economics, encompassing joint humanitarian efforts, including the resettlement of Afghan refugees through the UAE Humanitarian City.

The collaboration also spans security, defense, and space, with agreements between law enforcement agencies, space agencies, and public safety institutions. Currently, around 60,000 Canadians live in the UAE, further indicating the depth of community and economic ties.

The recent developments reflect a shift from traditional economic partnership to a multi-dimensional investment and strategic alliance. For the UAE, Canada represents a stable destination for long-term capital and a gateway to North American markets, while Canada views the UAE as a financial and investment hub for the region and a base for its companies to enter the Middle East and Asia. Amid global geopolitical changes and nations' efforts to diversify partnerships beyond singular reliance, this relationship appears poised to play a larger role in the transcontinental investment landscape over the next decade.