The United Arab Emirates said on Friday it will invest up to $50 billion in Canada under a framework that includes projects in artificial intelligence, energy, and mining sectors.
The UAE has been looking to expand its energy investments abroad, especially through its recently launched firm XRG, the foreign investment arm of Abu Dhabi’s oil major, ADNOC.
Abu Dhabi is also investing heavily in AI, with plans to build one of the world’s largest data center hubs in the country with U.S. technology.
Emirati state-linked tech firm, G42, is driving the development of its AI industry.
Carney’s Visit
The signing of the framework came at the sidelines of a visit by Canada’s Prime Minister Mark Carney to Abu Dhabi, the UAE investment ministry said in a statement.
A press note by Mark Carney’s office also states that during the meeting, the leaders announced that Canada and the UAE launched negotiations toward a Comprehensive Economic Partnership Agreement (CEPA).
This agreement is likely to cut tariffs, eliminate red tape, and expand market access for Canadian exporters of goods and services. The UAE, a $700 billion economy and one of the world’s fastest-growing logistics hubs, offers vast opportunities for Canadian sectors such as engineering, aerospace, agri-food, and seafood. A CEPA will also facilitate greater collaboration in the digital sectors.
This was Prime Minister Carney’s first official visit to the UAE, and the first by a Canadian Prime Minister since 1983.
“In a more divided and dangerous world, Canada is securing new deals with new partners. Our agreements with the UAE will attract billions of dollars in investments into Canada, open new markets and opportunities for our workers and businesses, and create high-paying careers across the country. Canada is diversifying our trade and finding new investors to fuel our plans to build Canada strong,” said Carney.
Last month, the Canadian Minister of Artificial Intelligence and Digital Innovation, Evan Solomon, also visited the UAE, where he signed a memorandum of understanding to strengthen bilateral collaboration on AI and emerging technologies, further advancing bilateral trade and innovation ties.
(with inputs from Reuters)
