Prime Minister Mark Carney says his government is working on a $1 billion project to expand Canada’s critical minerals processing capacity, while the United Arab Emirates (UAE) has agreed to commit the equivalent of $70 billion in Canada.
The announcements come as Carney concluded his week to Abu Dhabi, UAE, this week.
Carney said during a Nov. 21 speech before the Canada-UAE Business Council in Abu Dhabi that he was “pleased that an agreement valued over $1 billion is in the process of being finalized” with the country.
The prime minister said this agreement would expand critical minerals processing capacity in Canada, create jobs, and boost the long-term supply of minerals that are “essential to energy technologies and advanced manufacturing,“ and that there would be ”more on that soon.”
The UAE said in a press release, it was launching an “investment framework” that would see the country commit approximately $70 billion towards projects in “vital” Canadian sectors like energy, AI, logistics, mining, and other “priority national and strategic industries.” The country said that foreign direct investment from the UAE in Canada totalled $12.4 billion in 2024, while Canadian investment in the UAE was $341 million.
Carney said he had personally invited UAE investors to visit Canada and “explore investment in Canada’s transformative projects.” He also said Canada was going to add more direct commercial flights between the two countries, which he said would increase tourism and trade.
The Prime Minister’s Office (PMO) said in a release that International Trade Minister Maninder Sidhu will lead a Canadian business delegation to UAE in early 2026, which will focus on encouraging investors and sovereign wealth funds to work with and invest in the Major Project’s Office. The newly created office works to advance major projects such as those related to LNG, critical minerals, and ports, and streamline federal regulatory project approval.
Canadian pension funds, with $2 trillion in capital, will also visit the UAE next year to develop “opportunities for long-term investment and deepen partnerships in sectors such as energy, infrastructure, and AI,” according to the PMO.
During Carney’s visit to the country, he also signed a new Canada-UAE Foreign Investment Promotion and Protection Agreement (FIPA), which the PMO said “establishes clearer rules and protections for investors and creates a more predictable environment for two-way investment,” and will support long-term partnerships between investors in Canada and the UAE.
Carney and UAE President Sheikh Mohamed bin Zayed Al Nahyan also started negotiations toward a Canada-UAE Comprehensive Economic Partnership Agreement (CEPA) that would reduce tariffs, remove trade barriers, and expand market access for Canadian exporters.
The PMO said the agreement aims to help businesses in the engineering, construction, aerospace, and agriculture sectors expand into the UAE, and that country will in turn make investments in Canadian mines, ports, data centres, critical minerals, and liquid natural gas.
