The UAE finalised a Comprehensive Economic Partnership Agreement (Cepa) with Canada as the Emirates presses ahead with efforts to deepen trade and investment ties.
The trade agreement with Ottawa aims to reduce trade barriers to goods, services and investment, and follows a $50 billion investment commitment from the UAE last November.
"I'm looking forward to working together in the months and years ahead to deliver the promise of this landmark and ... strong and long-term partnership between both nations," Dr Thani Al Zeyoudi, Minister of Foreign Trade, said during a press conference in Canada.
The Cepa agreement gives Canadian companies better access to the UAE, which remains the largest market for Canadian exports in the Middle East, and could help attract capital into energy, mining, artificial intelligence and ports.
"Our investment agreement gives investors the certainty they need to write those cheques," said Maninder Sidhu, Canada's international trade minister.
The UAE's $50 billion investment pledge was expected to focus on liquefied natural gas, ports, mines and other major projects. Dr Al Zeyoudi said he expects those investment announcements to be made soon.
Ottawa said Canada's bilateral trade with the UAE in 2025 was valued at $2.48 billion, with Canadian exports up by 10 per cent year-on-year. Iron and steel products (16 per cent) and aluminium (12 per cent) accounted for Canada's largest imports from the UAE.
Friday's agreement marked the 38th Cepa the UAE has finalised since launching its programme in 2021.
The programme is part of a broader effort by the Emirates to expand its non-oil economic base. The Emirates is aiming to increase non-oil foreign trade to $1.089 trillion by 2031.
Dr Al Zeyoudi said the agreement was reached in 47 days, which he called "record time".
"This agreement is one of the fastest among the 38 Cepas that we have concluded since we launched the programme, and this is a reflection of the strength of the bonds that exist between our two nations," he said.
The trade agreement with Canada was one of up to seven the UAE was expected to conclude this year along with Bangladesh, the EU, Peru, Ghana, Rwanda and Zambia. Cepas with India, Jordan, Serbia, Turkey, Ukraine and Vietnam have already come into force.
Canada-US trade tension
For Canada, the agreement marks the latest effort by Prime Minister Mark Carney's office to deepen investment ties with the Gulf while also reducing reliance on the US market.
"We are building resiliency in our supply chains and in our trading relationships. We set a mission for ourselves: double our non-US exports to the tune of $300 billion by 2035, and unlock a trillion dollars of new investments," Mr Sidhu said.
Canada has been seeking to diversify its trade ties amid continuing tariff rows with President Donald Trump's administration. The White House this week announced a new set of 50 per cent tariffs on Canadian imports.
The US is Canada's largest trading partner, with more than 70 per cent of Canadian exports going to its southern neighbour.
"We need to make sure that we have resilience as a country, and that's exactly what we're doing," Mr Sidhu said.
