Canada and the United Arab Emirates (UAE) have launched a new Strategic Partnership, with Prime Minister Mark Carney and His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, overseeing agreements on trade, investment, defence and diplomacy during the Crown Prince’s first official visit to Canada.

A key outcome was the signing of the Canada-UAE Comprehensive Economic Partnership Agreement (CEPA), which is expected to enter into force in 2027. The agreement aims to expand bilateral trade, improve market access and reduce tariffs on more than 99% of current Canadian exports to the UAE.

Key developments:

  • CEPA aims to eliminate tariffs on over 99% of current Canadian exports to the UAE.
  • Canada and the UAE signed a Defence Cooperation Memorandum of Understanding covering military training, cyber security and defence industry collaboration.
  • New commercial agreements advanced the UAE’s $70 billion investment commitment in Canada, including projects in logistics, renewable energy and investment promotion.

Both countries also agreed to begin negotiations on an Extradition Treaty and a Mutual Legal Assistance Treaty.

Supporters argue the Strategic Partnership will diversify Canada’s trade beyond traditional markets, strengthen supply chains and attract long-term investment in infrastructure, energy and technology, while enhancing defence and diplomatic cooperation. 

Critics, however, argue that closer ties with the UAE should be accompanied by greater scrutiny of its human rights record, citing concerns raised by international organisations over restrictions on freedom of expression and political dissent, the treatment of migrant workers and labour rights, and allegations relating to the UAE’s role in Sudan’s conflict, which the UAE denies. 

Others caution that the agreement’s projected economic benefits will ultimately depend on parliamentary ratification, implementation and the delivery of planned investment commitments. 

ℹ️   Prime Minister of Canada, CNC

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Canada’s Prime Minister Mark Carney and Abu Dhabi’s Crown Prince Khaled Bin Mohamed Bin Zayed Al-Nahyan leave a welcome ceremony on Parliament Hill in Ottawa, Ontario, Canada, October 27, 2026. REUTERS/Patrick Doyle
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