Prime Minister Mark Carney is set to finalize an investment agreement with the United Arab Emirates during his upcoming trip, as revealed by a government official speaking to CBC News. The agreement, known as the foreign investment, promotion, and protection agreement (FIPA), aims to facilitate investments between Canada and the U.A.E. by establishing guidelines and a dispute resolution mechanism.
Additionally, Canada is expected to kickstart discussions for a streamlined free trade agreement with the U.A.E., focusing on sectors such as artificial intelligence, aerospace, and labor mobility. This move is seen as a strategic step amid global uncertainties surrounding globalization and free trade, according to Goldy Hyder, the president and CEO of the Business Council of Canada.
Carney’s meeting with U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan will concentrate on enhancing economic collaboration in vital areas like energy, agriculture, infrastructure, and AI. The visit to the U.A.E. precedes Carney’s attendance at the G20 summit in Johannesburg, South Africa.
The U.A.E.’s significant investment potential and Canada’s aim to attract foreign capital are driving forces behind the agreement. Roland Paris, from the University of Ottawa, highlighted the opportunities for investment, particularly in energy projects, emphasizing the importance of the trip’s engagements.
Moreover, recent diplomatic activities between Canada and the U.A.E., including the visit of Sheikh Abdullah bin Zayed Al Nahyan to Canada and the opening of a Dubai Chamber of Commerce office in Toronto, have strengthened bilateral ties. Trade between the two countries totaled $2.6 billion in exports and $800 million in imports in 2024, coinciding with the 50th anniversary of diplomatic relations.
While concerns regarding human rights issues in the U.A.E. persist, the Canadian government aims to address these matters through ongoing discussions. Despite criticisms, the need for pragmatic engagement and economic diversification remains a priority for Canada in today’s evolving global landscape.
Carney’s approach to recalibrating Canada’s international relations reflects a pragmatic stance, emphasizing the need for adaptable and strategic partnerships. As Canada navigates its trade and investment landscape, the focus remains on exporting Canadian values while pursuing economic growth and stability.