Canada and UAE partner on critical minerals, secure supply chains

Prime Minister Mark Carney concluded a two-day visit to the United Arab Emirates (UAE), securing promises of substantial investment into Canada and setting the stage for increased collaboration. He announced an agreement exceeding CDN$1 billion, nearing finalization, to expand critical mineral processing in Canada, with more details to follow. Carney hailed this nascent deal as a direct benefit of his trade mission to the Gulf region.

Speaking to a business audience in Abu Dhabi, the UAE capital, Carney also revealed the Emirates' pledge to invest $70 billion in Canada. Speaking in an interview with the Globe and Mail, he characterized this as a “powerful vote of confidence in our economy” and a significant step forward in a new strategic partnership. A senior official, who spoke anonymously to the Globe, indicated this $70 billion investment would occur over approximately one year.

Carney’s trip aimed to diversify Canada's trade relationships, moving away from reliance on the U.S. under President Donald Trump. The Gulf region, alongside Europe and Asia, represents a priority for attracting foreign investment in key sectors like energy, infrastructure, artificial intelligence, and resources. Carney explicitly sought to reframe Canada as an investment destination in its own right, not merely as an extension of the U.S.-dominated North American economy.

His bilateral meetings in the Emirates, where he had cultivated high-level relationships previously, were choreographed to usher in a new era of regional engagement, bringing Canadian business leaders and investors along.

Carney emphasized that the critical-minerals deal would bolster the long-term supply of minerals vital for energy technologies and advanced manufacturing, reflecting a deeper investment partnership between the two nations. He has set an ambitious goal of doubling non-U.S. exports within a decade, translating to an additional $300 billion in annual overseas sales. He also stated Canada would attract $500 billion in new private-sector investment over five years.

The prime minister’s delegation included a number of prominent Canadian companies: AI startup Cohere Inc., software services firms BlackBerry Ltd. and Open Text Corp., aviation technology provider CAE Inc., construction giant EllisDon Corp., and Air Canada. Canadian investment bankers and lawyers, with representatives from TD Securities, Power Sustainable, and Inovia, also participated.

Carney confirmed Canada would support a delegation of Canadian pension funds, collectively managing over $2 trillion, to visit the UAE next year. This initiative seeks to forge deeper ties and identify new investment opportunities. Additionally, International Trade Minister Maninder Sidhu will lead a Canadian business delegation to the UAE in January, focusing on energy, artificial intelligence, infrastructure, and agriculture.

The Canada-UAE Business Council, co-chaired by former Quebec premier Jean Charest and ADNOC CEO Musabbeh Al Kaabi, shaped the priorities for these formal and informal meetings. Speaking in Abu Dhabi, Carney highlighted shared values between the UAE and Canada, including their mutual support for Palestinian aid. He also underscored his government’s commitment to major new infrastructure and resource projects in Canada, encompassing ports, mines, energy transportation corridors, and critical-minerals extraction.

Carney told the Canada-UAE Investment Business Summit, hosted by the Canada-UAE Business Council: “At our core, we are both trading nations: hubs for merchant traders for generations, and home to builders who challenge the scale of ambition.”

He added, “We are both energy superpowers, who can lead in all aspects of the energy transition.” He also proclaimed, “We can both lead the AI revolution through infrastructure, applications and diffusion.” Earlier in the week, Carney pitched Canada to heavyweight investors in the UAE and initiated negotiations on a free-trade agreement.