Bilateral trade surged to $4.2 billion in 2025; landmark deal set to slash tariffs, eliminate trade barriers, and boost strategic investments
CANADA / ABU DHABI, UAE :The United Arab Emirates and Canada have officially concluded negotiations for a Comprehensive Economic Partnership Agreement (CEPA), marking a major milestone in their expanding bilateral economic ties. The deal represents the fastest negotiation completed in the history of both the UAE’s CEPA initiative (launched in September 2021) and Canada’s international trade framework.
The agreement was jointly announced during an official trade mission to Canada led by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, alongside Maninder Sidhu, Canadian Minister of International Trade.
Economic Impact and Strategic Investments
Building on a robust economic foundation that saw bilateral trade grow by 21% year-on-year to reach $4.2 billion USD in 2025, the CEPA will eliminate non-tariff barriers, reduce duties, and significantly enhance market access for exporters and investors in both nations.
Upon ratification and entry into force, the agreement is projected to unlock billions of dollars in cross-border investments targeting large-scale infrastructure projects, including:
- Infrastructure & Logistics: Ports, supply chain networks, and maritime facilities.
- Energy & Tech Transition: Clean energy initiatives, data centres, and LNG infrastructure.
- Resource Development: Mining ventures and critical minerals processing.
- Food Security & Aviation: Advanced agri-food systems, sustainable seafood, and aerospace tech.
Key Leadership Quotes
“The successful conclusion of CEPA negotiations between the UAE and Canada reflects the depth of the strategic relationship between our two nations. Through this agreement, we are opening new horizons for our business communities, expanding investment opportunities across clean energy, advanced technology, data centres, agri-food, aviation, and critical minerals—sectors where our two economies are genuinely complementary.” — Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade
“The conclusion of negotiations on a CEPA with the UAE is the fastest negotiation ever completed by Canada. This agreement will unlock opportunities for Canadian businesses to utilise the UAE as a regional commercial hub to grow exports while encouraging investment from the UAE in projects that support our long-term economic goals.” — Maninder Sidhu, Canadian Minister of International Trade
Broader Economic Vision
The Canada CEPA complements the existing UAE-Canada Foreign Investment Promotion and Protection Agreement (FIPA), providing elevated legal protections and streamlined entry points for private sector collaboration.
The landmark deal reinforces the UAE’s broader foreign trade roadmap, which has secured 38 CEPAs across high-growth global economies since September 2021. This aggressive trade expansion strategy supports the Emirates’ target of expanding its national GDP to over $800 billion USD by 2031, following its milestone achievement of crossing $1 trillion USD in total trade value six years ahead of schedule.
