Canada and the United Arab Emirates launched a new strategic partnership on October 27 and signed a Comprehensive Economic Partnership Agreement, capping a two-day visit to Ottawa by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi. According to the Prime Minister’s Office, it was the first visit to Canada by a Crown Prince of Abu Dhabi, and the trade deal was concluded in a record 47 days — the fastest either country has negotiated a free trade agreement.
Once fully implemented, the agreement is expected to reduce or eliminate tariffs on more than 99 per cent of current Canadian exports to the UAE. Ottawa highlighted pulses and canola, industrial machinery, power-generation equipment and aerospace as likely beneficiaries, along with forestry, seafood, environmental and engineering services. The deal also addresses non-tariff barriers and is expected to enter into force in 2027.
The partnership extends well beyond trade. The two countries signed a memorandum of understanding on defence co-operation that modernizes an existing arrangement and creates a Joint Military Committee to oversee training, joint exercises, defence-industrial work and cyber security. Global Affairs Canada also signed an agreement with the Anwar Gargash Diplomatic Academy on diplomatic training, including the effect of artificial intelligence on diplomacy.
Investment was the other headline. The UAE had committed in November 2025 to invest $70 billion in Canada, and the visit produced several commercial agreements under that umbrella. DP World signed a memorandum with the Arctic Gateway Group and CentrePort Canada to develop a transportation corridor linking the Port of Churchill and the Hudson Bay Railway to its global network, and Masdar reached an energy co-operation arrangement with Natural Resources Canada.
The agreement fits the government’s broader push to diversify trade away from the United States, following recent partnerships with Türkiye and closer ties with the European Union. Speed will draw scrutiny: a 47-day negotiation leaves little time for public consultation, and critics of Gulf states’ human-rights records are likely to question the defence elements. The details of the text, and how Parliament reviews it before ratification, will determine whether the deal is seen as a model or a shortcut.
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