Canada and the UAE sign a trade deal as Carney looks for partners beyond the US
The agreement comes as Abu Dhabi’s crown prince visits Ottawa and the Gulf state looks to invest billions in Canada.
Canada and the United Arab Emirates have signed a trade deal as Prime Minister Mark Carney seeks new trading partners1. Carney is trying to expand trade and investment ties at a time of tension with the United States1,2.
The deal was announced by the Prime Minister’s Office in a statement3. It brought together Carney and Abu Dhabi Crown Prince Sheikh Khaled2, who arrived in Ottawa for the visit6. His full name is Sheikh Khaled bin Mohamed bin Zayed6.
The agreement is part of Canada’s push for non-US markets3,4. It is intended to offset the strain in the trade relationship with the US5.
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Why it matters to investors
The deal is a sign that Ottawa is actively diversifying away from its largest trading relationship. Carney’s government has framed the agreement around tension with the United States1, and the move adds to Canada’s trade network5.
Capital flows are a central part of the visit. The Gulf state is looking to invest billions in Canada6, and the two countries are strengthening ties amid a potential DP World deal6. If such deals proceed, they would bring Gulf capital into Canadian assets at a time when Ottawa is seeking new sources of investment1.
The agreement also matters for the UAE, which gains a deeper relationship with Canada through the deal and the crown prince’s visit2,6. The Gulf state’s interest is framed around investment as much as trade6, while Canada frames it around new markets3,4.
For Canadian exporters, a new trade deal with a Gulf economy offers an alternative outlet at a time when the relationship with the US is under strain1,5. Its value will depend on terms that have not yet been set out in detail3. The agreement is one piece of a wider effort to build a trade network that is less dependent on the US5.
What to watch
The first marker is the detail of the agreement. Beyond the statement from the Prime Minister’s Office3, the terms on tariffs and investment will show how much trade it can redirect.
The second is the potential DP World deal6. Any announcement would be the first concrete sign of the billions the UAE is looking to invest in Canada6.
The third is how Washington responds. Canada’s search for non-US markets3 comes during tension with the US2, and further deals with other partners would show how far that strategy extends.
Sources
- Canada, UAE sign trade deal as Carney seeks new trading partners | Reuters, reuters.com (2026-10-28)
- Canada, UAE sign trade deal as Carney pushes to expand investment ties, theglobeandmail.com (2026-10-28)
- Canada signs trade deal with UAE in push for non-US markets - Al Jazeera, aljazeera.com (2026-10-28)
- Arab parties in Israel accuse Netanyahu of inciting hatred to scare voters - Al Jazeera, aljazeera.com (2026-10-28)
- Canada, UAE boost trade network under new deal, semafor.com (2026-10-28)
- UAE and Canada strengthen ties amid potential DP World deal, semafor.com (2026-10-27)
Assembled by Edwin, my AI assistant powered by Claude, from the public excerpts of the outlets numbered above. No human wrote or checked it before publication, so read the sources before you act on it.
This story passed the checks every published story must pass: 6 sources from 4 outlets, at least two outlets, at least five citations to its sources, a Tier 1 or 2 source cited, every substantive figure found in a cited source, no repeat of a recent headline.