Ottawa, Abu Dhabi sign deals with delivery timetable set

Ottawa delivered a working agenda over the past two days, not just ceremony. Prime Minister Mark Carney hosted the Crown Prince of Abu Dhabi, His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, on the first-ever visit to Canada by a Crown Prince of Abu Dhabi, and the visit closed with signed agreements, operational frameworks and an implementation timetable.

The centrepiece is the new Canada-UAE Comprehensive Economic Partnership Agreement, or CEPA, signed as an immediate step under a newly launched Strategic Partnership. Negotiations wrapped in 47 days. That is the fastest either country has ever concluded a free trade agreement, and the deal is expected to enter into force in 2027. Once fully implemented, it will reduce or eliminate tariffs on more than 99% of current Canadian exports to the UAE.

On the ground, the payoff is expanded market access for specific Canadian sectors: farmers growing pulses and canola, manufacturers of industrial machinery and power generation equipment, the aerospace sector and other innovators. The agreement also tackles non-tariff barriers, creates a more predictable environment for trade and investment, and opens doors for Canadian goods and services across the industrial, agricultural, forest, fish and seafood, environmental and engineering sectors. International Trade Minister Maninder Sidhu quantified the operational target: the CEPA will double two-way trade from $3.4 billion to $7 billion over the next decade, giving Canadian businesses in energy, aerospace, critical minerals and agri-food greater access to the UAE’s $700 billion economy, a gateway he described to a Middle East and North African market of nearly 500 million people and over $7.2 trillion in GDP.

The Strategic Partnership itself converts a year of rapid progress into a long-term framework spanning economic ties, energy, technology, education, defence, diplomacy and cultural exchange between the two peoples.

Investment delivery moved in parallel. The visit advanced the UAE’s historic commitment to invest $70 billion in Canada, announced during Carney’s November 2025 trip to Abu Dhabi. Three commercial agreements and investments were announced during the Crown Prince’s stay. DP World signed a new MOU with the Arctic Gateway Group and CentrePort Canada to advance strategic trade opportunities and develop an integrated transportation corridor linking the Port of Churchill, the Hudson Bay Railway, CentrePort Canada and DP World’s global logistics network. Masdar and Natural Resources Canada established an Energy Cooperation Arrangement, a framework combining the investment, development and operational expertise of UAE renewable energy firms and Canadian partners, with policy guidance and facilitation from both governments. Separately, Invest in Canada and the Abu Dhabi Chamber of Commerce and Industry agreed to assist interested members in sharing information, facilitating connections and coordinating visits.

Meanwhile, the security and institutional files moved forward. The two countries signed a Memorandum of Understanding on Defence Cooperation that modernises the existing Canada-UAE Defence Cooperation Arrangement. It covers military education and training, defence policy dialogue, joint exercises, defence industrial cooperation, cyber security and information exchanges, and it establishes a Joint Military Committee to guide implementation. Global Affairs Canada and the Anwar Gargash Diplomatic Academy signed an MOU of their own to deepen cooperation on diplomatic training and education programs, including exchanging best practices and collaborating on emerging issues such as the impact of artificial intelligence and digital tools on diplomacy. Canada and the UAE also announced they will launch negotiations toward justice and public safety instruments, including an Extradition Treaty and a Mutual Legal Assistance Treaty.

The governments frame all of it as part of a deliberate effort to build strength at home and forge reliable partnerships abroad by diversifying trade, catalysing investment and advancing major projects. Carney said the two countries are “building big,” noting that in less than a year they have put an investment protection agreement in force, negotiated and signed a trade agreement in record time, and turned the $70 billion commitment into real investments in Canadian energy, infrastructure and technology. Foreign Affairs Minister Anita Anand said the new Strategic Partnership gives the past year’s progress a long-term direction, deepening relations to advance prosperity, security and resilience for both peoples. National Defence Minister David J. McGuinty called the defence agreement a significant step forward in deepening military cooperation, advancing defence innovation and opening new opportunities for defence industries.

The relationship has deep roots. Canada and the UAE have maintained a broad partnership for over 50 years, focused on prosperity through economic cooperation, regional security and economic development in third countries. In 2025, two-way merchandise trade was valued at $3.5 billion, with $2.8 billion in exports and $679.1 million in imports, and Canadian merchandise exports grew by more than 10% that year. More than 150 Canadian companies operate in the UAE, and an estimated 60,000 Canadians live and work there. Canada positions this within a broader trading network offering preferential access to 1.5 billion consumers across 16 free trade agreements covering 51 countries and roughly two thirds of global GDP. During Carney’s November 2025 visit to the UAE, he joined the President of the UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan, to sign the Canada-UAE Foreign Investment Promotion and Protection Agreement and launch CEPA negotiations alongside the investment commitment.

With frameworks signed, committees mandated and timelines set, the question now shifts from agreement to execution: can both governments turn the 2027 CEPA entry into force and the $70 billion commitment into functioning trade corridors, energy projects and jobs?