The United Arab Emirates and Canada have taken significant steps to enhance their bilateral relations through a series of trade, investment, and defense agreements. This development aims to bolster economic cooperation and fortify strategic ties between the two nations.
During the historic visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to Ottawa, both countries signed a Comprehensive Economic Partnership Agreement (CEPA), an updated defense cooperation agreement, and a memorandum focused on diplomatic training. Additionally, they agreed to initiate negotiations on extradition and mutual legal assistance treaties. These agreements mark a transformative phase in their relationship, establishing a more structured strategic partnership.
The negotiations for the CEPA, which began in November 2025 and concluded in July 2026, were notably swift, wrapping up in just 47 days. Once fully implemented, the agreement is expected to eliminate or reduce tariffs on more than 99 percent of Canada’s current exports to the UAE. It aims to address trade barriers and expand access to services, including engineering and environmental industries. Canada anticipates that this agreement will help double bilateral trade within the next decade as it seeks to diversify its international economic partnerships.
The UAE is already Canada’s largest export market in the Middle East, with more than 150 Canadian companies operating in the Emirates. The UAE has committed up to $50 billion in investments in Canada, targeting sectors such as energy, artificial intelligence, critical minerals, and infrastructure. This partnership builds on existing investments by Emirati companies in Canada, including activities in the chemicals and logistics industries.
For the UAE, strengthening ties with Canada supports its broader strategy to expand international trade networks and diversify supply chains. Canada offers substantial natural resources, agricultural production, advanced engineering capabilities, and access to major international markets, making it a valuable partner for the UAE.
Several sectors have been identified for potential future cooperation, including critical minerals, food security, artificial intelligence, and infrastructure. Collaboration in critical minerals could leverage Canada’s natural resources alongside Emirati investment in processing and industrial development. Additionally, Canadian grains, pulses, and seafood could play a crucial role in enhancing the UAE’s food security.
Despite the progress, these agreements will require further implementation steps. Canada’s Parliament must ratify the trade agreement, and investment commitments will need to translate into tangible projects. The strengthened partnership underscores a mutual interest in economic diversification, reliable supply chains, and international cooperation amidst growing global trade uncertainties.