Abu Dhabi (TDI): The United Arab Emirates has agreed on a new investment framework with Canada; committing as much as $50 billion in funding for Canada’s most strategic and rapidly expanding sectors.
The agreement marked one of the largest UAE commitments to a developed economy and is expected to significantly deepen the financial, technological and economic ties between the two countries.
During his visit to Abu Dhabi, Canadian Prime Minister Mark Carney announced the framework, which lays out a long-term plan for significant Emirati investment in Canada.
The targeted sectors include energy, artificial intelligence, logistics, and other high-value industries central to Canada’s growth agenda. Officials from both sides described the development as a natural progression of a relationship built on stability, mutual trust, and shared economic goals.
According to the UAE investment ministry, the 50 million commitment is aimed at expanding bilateral economic cooperation and reinforcing the emirate’s role as a leading global investor.
The UAE has sought to diversify its foreign investment portfolio, particularly through energy-focused entities such as XRG, the new international investment arm of Abu Dhabi National Oil Company (ADNOC).
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At the same time, Abu Dhabi has emerged as a major hub for artificial intelligence, backed by state-linked tech firms like G42, which are investing heavily in advanced data centers and next-generation computing infrastructure.
Prime Minister Carney said that the partnership aligns with Ottawa’s broader goals of expanding critical mineral processing, accelerating clean energy development, and commercializing breakthroughs in emerging technologies such as AI, quantum computing, and life sciences.
PM Carney confirmed that a separate $1billion project is currently being finalized to expand Canada’s capacity in critical minerals processing in an area where both countries see enormous strategic value.
He also noted that the UAE’s broader multi-billion dollar commitment reflects strong confidence in the Canadian economy, despite challenges stemming from the ongoing US trade war and domestic productivity concerns.
During his speech to Canada–United Arab Emirates Business Council, Carney noted that the relationship is entering a new chapter, and invited Emirati investors to visit Canada and explore opportunities linked to what he called the country’s transformative projects.
UAE’s foreign direct investment stock in Canada reached $8.8 billion in 2024, while Canadian investment into the Emirates totaled $242 million. With the new framework now in place, both sides expect these numbers to rise sharply in the coming decade.
Although the UAE Foreign Ministry has not yet released a detailed breakdown of the funding, government sources indicate the investments will span renewable energy, advanced technologies, logistics infrastructure and mining sectors central to both countries’ long-term economic strategies.
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