The UAE has finalised a Comprehensive Economic Partnership Agreement (Cepa) with Canada, as the Emirates presses ahead with efforts to further strengthen trade and investment ties with Ottawa.

The trade agreement aims to reduce trade barriers to goods, services and investment, and follows a $50 billion investment commitment from the UAE made last November. It marks the latest step in a diplomatic and commercial relationship that both governments describe as accelerating rapidly.

“I’m looking forward to working together in the months and years ahead to deliver the promise of this landmark and … strong and long-term partnership between both nations,” said Dr Thani Al Zeyoudi, the UAE’s Minister of Foreign Trade, speaking at a media conference in Canada.

Wider Market Access, New Investment Pathways

The Cepa grants Canadian companies improved access to the UAE, which remains the largest market for Canadian exports in the Middle East. Officials in both capitals say the agreement could help attract fresh capital into energy, mining, artificial intelligence and ports — sectors identified as priorities for the next phase of bilateral cooperation.

The UAE’s earlier $50 billion investment pledge was expected to focus on liquefied natural gas, ports, mines and other major infrastructure projects. Dr Al Zeyoudi said he expected formal announcements on those investments to follow soon.

According to Ottawa, bilateral trade between Canada and the UAE was valued at $2.48 billion in 2025, with Canadian exports rising 10 per cent year-on-year. Iron and steel products accounted for 16 per cent of Canada’s exports to the UAE, while aluminium made up a further 12 per cent.

Record Pace, and a Trillion-Dollar Ambition

Friday’s agreement marked the 38th Cepa the UAE has finalised since launching its economic partnership programme in 2021, part of a broader drive by the Emirates to expand its non-oil economic base. The country has set a target of increasing non-oil foreign trade to $1.089 trillion by 2031.

Dr Al Zeyoudi said the agreement with Canada was reached in just 47 days — which he called “record time.”

“This agreement is one of the fastest among the 38 Cepas that we have concluded since we launched the programme, and this is a reflection of the strength of the bonds that exist between our two nations,” he added.

The Canada agreement is one of up to seven Cepas the UAE is expected to conclude this year, alongside pacts with Bangladesh, the European Union, Peru, Ghana, Rwanda and Zambia. Cepas with India, Jordan, Serbia, Turkey, Ukraine and Vietnam have already come into force.

Ottawa’s Bid to Diversify Beyond Washington

For Canada, the agreement represents the latest effort by Prime Minister Mark Carney’s government to deepen investment ties with the Gulf while reducing reliance on the United States market.

Canada has been seeking to diversify its trade relationships amid ongoing tariff disputes with the administration of U.S. President Donald Trump. The White House this week announced a fresh round of 50 per cent tariffs on Canadian imports.

The United States remains Canada’s largest trading partner, with more than 70 per cent of Canadian exports going to its southern neighbour. “We need to make sure that we have resilience as a country and that’s exactly what we’re doing,” Mr Sidhu said.

As the UAE continues to widen its network of economic partnerships across four continents, the Canada agreement stands as a marker of how quickly Gulf-North America trade diplomacy is now moving — and of the pressures reshaping Ottawa’s commercial strategy in an increasingly protectionist environment.

Khurram Ali Raza