Carney’s UAE Partnership Targets Energy, Critical Minerals and Canadian Industry

October 28, 2026 | News

Canada has launched a strategic partnership with the United Arab Emirates that combines a new free trade agreement, renewable energy cooperation and infrastructure proposals

The agreements, announced Tuesday following a visit to Ottawa by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, could open new markets for Canadian power-generation equipment, industrial machinery and other manufactured goods. But the extent to which they produce new Canadian processing capacity, clean energy projects and jobs will depend on investments still to be finalized.

Canada and the UAE signed a Comprehensive Economic Partnership Agreement after 47 days of negotiations. Once fully implemented, it will reduce or eliminate tariffs on more than 99 per cent of current Canadian exports to the UAE. Ottawa expects the agreement to take effect in 2027.

International Trade Minister Maninder Sidhu said the government expects the agreement to double two-way trade from roughly $3.4 billion to $7 billion over the next decade. That is a government projection, not a guaranteed outcome. Canadian government figures put 2025 merchandise trade at $3.5 billion, including $2.8 billion in Canadian exports.

Renewable energy investment in focus

Of particular importance to Canada’s energy transition is a new Energy Cooperation Arrangement between Natural Resources Canada and Masdar, the UAE-based renewable energy company.

According to the Prime Minister’s Office, the arrangement establishes a framework bringing together UAE renewable energy companies’ investment and operating experience with Canadian partners and government facilitation. The announcement did not identify a specific Canadian renewable project, investment amount or construction timetable under the arrangement.

That distinction matters. A framework for cooperation can help companies develop projects, but it is not the same as financing a power plant, expanding an electricity grid or bringing new industrial capacity into operation.

The partnership also identifies opportunities in critical minerals, technology and energy-related manufacturing. For Canada, a key economic question is whether foreign capital will support domestic processing and manufacturing, rather than primarily increasing exports of unprocessed commodities.

Churchill trade corridor proposed

In a separate development, global logistics company DP World signed a memorandum of understanding with Arctic Gateway Group and CentrePort Canada to explore an integrated trade corridor connecting the Port of Churchill, the Hudson Bay Railway, CentrePort Canada and DP World’s international logistics network.

The proposal could offer another route for Canadian commodities and manufactured products to reach overseas markets. The memorandum, however, is an agreement to advance opportunities, not a final construction or financing decision.

Ottawa described the announcements as progress toward the UAE’s $70 billion investment commitment, first announced during Carney’s November 2025 visit to Abu Dhabi. The government did not provide a project-by-project accounting of how much of that commitment has been invested, legally committed or remains under discussion.

“In less than a year, we have put an investment protection agreement in force, negotiated and signed a trade agreement in record time, and turned a historic $70 billion commitment into real investments in Canadian energy, infrastructure, and technology,” Carney said.

The broader strategic partnership also covers defence, education, technology and diplomacy, alongside negotiations toward justice and public-safety agreements.

For Canadian industry, the test will come after the signing ceremonies: whether the trade and investment arrangements translate into operating renewable energy projects, expanded electricity infrastructure, higher-value minerals processing and competitive manufacturing in Canada.

End Note

Related Energi Media YouTube Interviews

«