Prime Minister Mark Carney is set to finalize an investment deal with the United Arab Emirates during his upcoming visit, a government official informed CBC News. The agreement, known as the foreign investment promotion and protection agreement (FIPA), will establish a framework for mutual investments between Canada and the U.A.E., ensuring a stable investment environment amidst uncertain times. Additionally, discussions are expected to commence on a potential free trade agreement focusing on key sectors like artificial intelligence, aerospace, and labor mobility.
During his visit to Abu Dhabi, Carney plans to meet with U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan to enhance economic cooperation between the two countries in sectors such as energy, agriculture, infrastructure, and AI. This initiative aligns with Carney’s broader efforts to attract foreign investment to Canada and diversify trade partnerships, especially following strains in the U.S.-Canada trade relations due to tariffs imposed by former President Donald Trump.
The visit also aims to strengthen bilateral ties, as highlighted by the recent visit of U.A.E.’s deputy prime minister and foreign affairs minister to Canada, and the establishment of a Dubai Chamber of Commerce office in Toronto. Trade between the two nations amounted to $2.6 billion in exports and $800 million in imports in 2024, coinciding with the 50th anniversary of diplomatic relations between Canada and the U.A.E.
While there have been concerns raised by human rights experts regarding the U.A.E.’s alleged support for paramilitary forces involved in Sudan’s civil war, Canadian officials have emphasized the importance of engagement to address such issues. Despite differing views, the focus remains on fostering economic ties and leveraging Canada’s position as a stable investment destination bridging Europe and Asia.
As negotiations progress, the government emphasizes the necessity of pragmatic engagement with global partners, recognizing the evolving geopolitical landscape. While expectations are high for tangible outcomes from Carney’s diplomatic efforts, there is acknowledgment of the complexities involved in balancing economic interests with values such as human rights in international relations.