Canada eager to get UAE investment in energy and logistics as CEPA talks loom

Negotiations between the United Arab Emirates (UAE) and Canada over a comprehensive economic partnership agreement (CEPA) are set to start next month, as Ottawa seeks to bolster ties with the Gulf country and attract investment.

Canada has been trying to shift exports away from its main market, the United States due to tariffs imposed by US President Donald Trump.

The efforts include strengthening trade and investment ties with Gulf countries Saudi Arabia, Qatar and the UAE, which have gained momentum in recent months, including with an up to US$50 billion investment commitment by Abu Dhabi in areas including energy.

Energy ties in focus

Canada wants to attract investment in liquefied natural gas (LNG) and Abu Dhabi’s state energy group ADNOC, which has been looking to expand in North America through its international investment arm XRG, is looking at Canadian natural gas projects, Canadian Trade Minister Maninder Sidhu told Reuters in an interview in Dubai.

“Naturally, right now in Canada, we have seven LNG projects in development. And so, there’s going to be opportunities there that we hope that they explore, but also in green energy,” Sidhu said.

Ottawa is also looking to add port capacity to boost exports to non-US markets, he said.

“We see a lot of potential in the Indo-Pacific and in the European markets. And so that’s the focus,” Sidhu said.

As part of the push to diversify away from the US, Sidhu will also travel with Prime Minister Mark Carney to China this week for the first official visit of a Canadian prime minister to the country in eight years. Ottawa is aiming to rebuild ties with its second-biggest trading partner after years of friction.

“There are many things that we can collaborate on, and that’s what we’re going to go and explore and have those conversations,” Sidhu said, mentioning battery storage, energy and education.