Canada and the United Arab Emirates have formalized a new trade agreement aimed at expanding commercial exchange and deepening industrial ties. The pact, signed on Tuesday, comes as the UAE continues to position its infrastructure as a vital commercial bridge linking markets across Asia, Africa, and Europe, despite ongoing logistical challenges surrounding the Strait of Hormuz.
The agreement is projected to accelerate Canadian exports to the emirates across key sectors, including aerospace, machinery, vehicles, and agricultural cereals. UAE Foreign Trade Minister Thani bin Ahmed Al Zeyoudi emphasized the strategic advantages of the partnership, noting that the country’s expanding network of Comprehensive Economic Partnership Agreement partners provides Canadian exporters and investors with a business-friendly platform for reaching rapidly growing global markets.
Bilateral non-oil trade between the two nations experienced significant growth last year, rising roughly 20 percent to reach $4.2 billion in 2025. This commercial momentum builds upon a substantial financial commitment made last November, when the UAE pledged $50 billion in investments directed toward Canada.
Emirati capital and operational integration are already visible across several Canadian industries. In Calgary, Nova Chemicals operates as part of Borouge International, an entity co-owned by Abu Dhabi’s XRG, while DP World manages major shipping terminals at the Port of Vancouver. Minister Al Zeyoudi indicated that the newly signed pact is expected to catalyze further industrial capabilities and infrastructure developments across both nations.
For Ottawa, the commercial alignment coincides with efforts under Prime Minister Mark Carney to diversify international trade relationships and mitigate commercial frictions associated with the United States.
