After resolving the aviation rights dispute in 2018, the UAE-Canada business relations have witnessed a powerful growth and the upcoming visit of Canadian Prime Minister Mark Carney to the UAE this week is likely to boost the trade relations between the two economic heavyweights.
However, one of the logical questions is whether the meeting between the UAE President Sheikh Mohammed bin Zayed and Carney would result in a Free Trade Agreement between the two liberal and market-driven economies.
Carney is not just a charmer like former Canadian prime minister Justin Trudeau, but the current prime minister knows business and means business. Son of an academic, Mark Carney worked for 13 years with Goldman Sachs after studying economics at Harvard University in the United States and Oxford University in England (UK) and then went on to become the Governor of the Bank of Canada (2008-2013) followed by a seven-year stint as Governor of the Bank of England. Carney’s qualifications and his understanding of the economy and business trump Trudeau’s boyish charm.
Politics aside, with the ongoing foreign trade tariff campaign by the Trump administration in the United States, Mark Carney is the right choice to lead Canada in the current circumstances. While US President Trump unleashed his tariff campaign against the world as part of the Republican Party’s ‘America First’ catchphrase, Canada became the classic case of putting all eggs in one basket.
In 2024, the United States was the destination for 76 percent of all Canadian exports, and Canada imported about 50 percent of its goods and services from the United States, with a total value of the trade between the long-term North American allies reaching more than US$900 billion.
According to Canada’s federal government stats, nearly US$2.6 billion worth of goods and services crossed the border each day in 2024. The traditionally strong trade ties worth hundreds of billions of dollars – year after year – were monumentally disrupted early 2025 when the new Trump administration entered the White House.
While Trump took office in January 2025, Carney entered 22 Sussex Drive (Canadian version of the White House) in March on a promise that he will expand Canadian business relations beyond the United States to spread the risk of the US tariffs and avoid a looming economic slowdown owing to the US tariff uncertainty.
The latest visit of the Canadian Prime Minister to the UAE is a part of Carney’s efforts to find new markets for his nation’s products and forge sustainable trade relations outside of North America.
After a brief lull in 2018, the UAE-Canadian relations have improved substantially. The Canadian government’s economic report says that the UAE is Canada’s largest export destination in the Middle East and ranked 16th globally as of 2024, with Canadian merchandise exports to the UAE growing by nearly 24 percent in a single year, following a 14 percent increase in 2023.
In 2024, Canadian exports to the UAE reached US$1.7 billion, and the bilateral investment relationship exceeded US$72 billion, including energy, infrastructure, financial services, aerospace, education, and tech sectors. More than 60,000 Canadians are residing and working across the seven emirates in the country, said a government document.
The UAE’s sovereign wealth funds play a significant role, channeling investments into Canadian renewable energy, infrastructure, and technology ventures. At the same time, Canadian investment in the UAE is supported by a strategic presence in sectors aligned with the UAE’s long-term diversification agenda.
The leadership of both countries has been pushing for robust business and trade relations underscored by strong economic, diplomatic and people-to-people ties. The opening of the Dubai Chambers office in Toronto in July 2025 and the ongoing dialogue through the Canada-UAE Business Council further reinforce these ambitions.
Chairman of Dubai Chambers Sultan Bin Saeed Al Mansoori said in Toronto in July: “The launch of our new office in Toronto marks a significant milestone in strengthening the economic ties between Dubai and Canada.”
“The office will serve as a strategic platform to connect businesses, facilitate investment flows, and open new channels for bilateral trade. We are committed to helping Canadian businesses leverage Dubai’s strategic location and competitive advantages as a gateway to global growth.”
By the end of 2024, a total of 4,112 Canadian companies were registered as active members of the Dubai Chamber of Commerce, representing an annual growth of 29 percent, said a press statement from Dubai Chambers, adding that this momentum has continued into 2025, with 289 new Canadian companies joining during the first quarter.
Some of the major drivers of the growth between the two economies include strong demand for Canadian agricultural and food products, a significant expansion in trade and investment in technology and automotive sectors, and ongoing diversification initiatives in both economies, according to a government document.
The UAE’s focus on food security and sustainable agriculture led to major imports of Canadian cereals, oilseeds, and pulses, sectors where Canada is globally competitive, it added.
Ongoing collaboration in clean energy and artificial intelligence is likely to further boost the ties between the two countries. A statement from the UAE’s Ministry of Economy reveals that the bilateral ventures and initiatives, such as the Catalytic Transition Fund, launched at COP28 in Dubai, are channeling billions into sustainable technology and decarbonization, aiding global emissions reduction.
[Oil-rich province of] “Alberta and the UAE are linking climate-resilient agriculture solutions, such as smart irrigation and AI-powered farming, positioning both countries as leaders in global food supply chains,” it says.
In October, Canada and the UAE signed an MoU that offers a framework to facilitate and drive investments by the two countries in shared priorities, including in digital infrastructure and AI adoption.
The MoU, signed during a visit to the UAE by Canada’s minister of AI and digital innovation Evan Solomon, also covers the sharing of technical expertise, support for investment in advanced technology, and collaboration on the development and deployment of safe and responsible AI.
Besides holding several meetings with the UAE ministers, Solomon also attended Dubai’s most popular tech show GITEX.
One of the growing areas of cooperation is in the field of investments between the two countries. Direct investments from the UAE in Canada stood at US$8.8 billion in 2024, while Canadian investment in the UAE reached $242 million, reflecting the sustained mutual interest. The two countries have been negotiating a Foreign Investment Promotion and Protection Agreement (FIPA) to provide further institutional security for investors; the 9th round took place last year in March per an update by the UAE Ministry of Foreign Affairs.
Finalizing FIPA is good news for investors, however, a solid free trade agreement between the UAE and Canada would open the golden gates of opportunities for both countries.
An FTA will reduce trade barriers and tariffs and will make the exports of both countries competitive, along with streamlining customs procedures.
For more than 50 years, Canada and the UAE have enjoyed a strong and broad relationship focused on building prosperity through economic cooperation, strengthening regional security, and advancing economic development in third countries, and Prime Minister Carney’s visit is expected to build on the already strong bilateral ties, said the Canadian Prime Minister’s office.
In Abu Dhabi, Prime Minister Carney will meet with the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, to expand the Canada-UAE economic partnership in key sectors such as energy, agriculture, infrastructure, and AI. He will engage with business executives and investors to increase market access for Canadian exporters and attract private capital to build Canada’s export infrastructure, it added.
Enhanced UAE-Canada ties will open an enormous market for Canadian goods, as the UAE is renowned for being a gateway to markets in the Arab world and is also a hub of re-exports with top-class ports and aviation infrastructure.
It remains to be seen how the Canadian Prime Minister will combine his business and diplomatic acumen to turn this important visit into a mutually beneficial long-term partnership and eventually expand his country’s trade beyond the United States.
