Canada–UAE Trade & Investment: A Strategic Shift with Global Impact

As part of Canada’s ambition to double exports over the next decade and attract $1 trillion in new investment over five years, Canada’s new government has taken concrete steps to deepen economic ties with the UAE.

Canada and the UAE signed a Foreign Investment Promotion and Protection Agreement (FIPA), establishing clear and predictable rules for investors. This agreement reduces risk, strengthens legal protections, and creates conditions for long-term capital flows between the two countries. It is expected to unlock billions in bilateral investment and support Canadian firms expanding abroad, while attracting foreign capital into major Canadian projects.

Canada and the UAE have also launched negotiations toward a Comprehensive Economic Partnership Agreement (CEPA). Once concluded, a CEPA would reduce tariffs, cut red tape, and expand access for Canadian goods and services in a $700-billion UAE economy. Based on Canada’s experience with similar agreements, bilateral trade could double from $3.4 billion to $7 billion over the next decade.

Moreover, the UAE has announced a landmark decision to invest up to $70 billion in Canada, targeting strategic sectors such as energy, critical minerals, infrastructure, ports, AI, and data infrastructure. This represents a strong vote of confidence in Canada’s long-term economic fundamentals and aligns closely with Canada’s nation-building priorities.

So, what does this mean for business? It clearly signals a shift for Canadian and international businesses in:

• Greater certainty for investors through stronger legal protections

• Expanded market access to a fast-growing regional hub connecting Asia, Africa, and Europe

• New funding opportunities for large-scale projects in energy, infrastructure, AI, and advanced technology

With experienced staff at Froese Law and years of on-the-ground experience in the UAE, combined with a strong Canadian and international network of law firms, we support clients in structuring and executing cross-border expansion strategies aligned with their long-term growth objectives. For organizations exploring international expansion or new market entry, we welcome you to reach out to discuss how we can support your plans.

Ultimately, Canada is positioning itself as a trusted destination for global capital and a serious partner in future-focused industries.  Together, these agreements lay the foundation for a long-term Canada–UAE economic partnership, one built on investment, innovation, and shared growth in an increasingly complex global landscape.

Stay tuned for more details to come as the agreement gets formalized for execution.