Canada and UAE sign comprehensive economic partnership deal, launch strategic partnership

Prime Minister Mark Carney met Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan in Ottawa on October 27, signing the Canada-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA) and launching a Canada-UAE Strategic Partnership. It was the first-ever visit to Canada by a Crown Prince of Abu Dhabi, on October 26-27.

What the deal does

The Prime Minister's Office said the deal was negotiated in a record 47 days, the fastest free trade agreement either country has negotiated. Once fully implemented, it will reduce or eliminate tariffs on over 99% of current Canadian exports to the UAE, and is expected to enter into force in 2027. Beneficiaries named include farmers growing pulses and canola, makers of industrial machinery and power generation equipment, the aerospace sector, and industrial, agricultural, forestry, fish and seafood, environmental and engineering businesses. The deal also addresses non-tariff barriers and aims to make trade and investment more predictable.

Investment and defence cooperation

The visit advanced the UAE's historic $70-billion investment commitment to Canada, announced in November 2025: DP World signed a memorandum of understanding with the Arctic Gateway Group and CentrePort Canada on an integrated transportation corridor linking the Port of Churchill, the Hudson Bay Railway and CentrePort Canada; Masdar and Natural Resources Canada signed an energy cooperation arrangement; and Invest in Canada and the Abu Dhabi Chamber of Commerce and Industry signed an agreement to help members share information and coordinate visits.

The two countries also signed a defence cooperation memorandum covering military education and training, defence policy dialogue, joint exercises, defence industrial cooperation, cyber security and information exchanges, with a Joint Military Committee to guide implementation. Global Affairs Canada and the Anwar Gargash Diplomatic Academy signed a memorandum on diplomatic training, and the two sides announced they will launch negotiations toward justice and public safety instruments such as an extradition treaty and a mutual legal assistance treaty.

Scale and background

The Prime Minister's Office said the CEPA could double two-way trade from $3.4 billion to $7 billion over the next decade, giving Canadian businesses greater access to the UAE's $700-billion economy and, through it, a Middle East and North Africa market of nearly 500 million people and over $7.2 trillion in GDP. Official figures put 2025 two-way merchandise trade at $3.5 billion, with $2.8 billion in exports and $679.1 million in imports, exports up over 10% on the year; more than 150 Canadian companies operate in the UAE and an estimated 60,000 Canadians live and work there.

The groundwork was laid during Carney's November 2025 visit to the UAE, when the two countries signed a foreign investment promotion and protection agreement (in force since May), launched CEPA negotiations and announced the $70-billion investment commitment. The new Strategic Partnership turns that year of rapid progress into a long-term framework spanning economic ties, energy, technology, education, defence, diplomacy and cultural exchange.