UAE-Canada Trade Agreement Set to Add $8.7 Billion to National GDP

The landmark Comprehensive Economic Partnership Agreement signed this week promises substantial economic gains, with exports to Canada expected to surge by $11.8 billion within the next seven years.

The signing of the UAE-Canada Comprehensive Economic Partnership Agreement marks a defining moment for bilateral economic relations. Dr. Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, outlined the transformative potential of the accord, which will contribute approximately US$8.7 billion to the UAE’s gross domestic product and increase UAE exports to Canada by around US$11.8 billion by 2033.

This agreement represents a watershed for the UAE’s engagement with advanced economies. It stands as the first Comprehensive Economic Partnership Agreement the UAE has concluded with a G7 member nation, signalling the breadth of diplomatic and commercial progress achieved with Canada and laying groundwork for similar accords with other members of the group.

The pact encompasses sweeping trade liberalisation, extending to approximately 99 per cent of the total value of existing bilateral trade and 97 per cent of all tariff lines. Such comprehensive scope reflects the depth of economic integration both nations seek. As we reported in September following the Canada Investment Summit 2026, the UAE delegation pressed for rapid implementation of this framework, and the signing delivers on that momentum.

The agreement builds upon a foundation of remarkable growth. Non-oil trade between the nations reached approximately US$4.2 billion last year, a gain of more than 22 per cent, with trade expanding a further 18 per cent in the first half of this year. UAE exports spanning iron, aluminium, metals, gold, electronic products, pharmaceuticals and food products will benefit substantially from the tariff reductions, whilst Canadian machinery, electronic equipment, spare parts and provisions will similarly enjoy enhanced market access.

Investment considerations hold equal prominence within the accord. The strategic mission that commenced in late October underscored the significance of capital flows between the nations. The UAE has committed US$50 billion in planned investments in Canada, a pledge reinforced by ongoing commercial negotiations valued at US$15 billion. Existing UAE investments concentrate in energy, logistics through DP World’s Canadian operations, and real estate, with data centres emerging as a principal investment focus in the coming phase.

The agreement extends particular attention to small and medium-sized enterprises and entrepreneurs, recognising their role in driving bilateral commercial innovation. Service sectors receive emphasis as facilitators of business operations, whilst safeguarding the legitimate interests of both nations. For the UAE, Canada represents a gateway to North American markets and the United States beyond, whilst Canada views the Emirates as its entry point into the Middle East and African regions.

What it means for Abu Dhabi

The agreement significantly enhances Abu Dhabi’s position as a global trading hub and investment destination. The projected US$8.7 billion contribution to national GDP underscores how advanced trade partnerships amplify economic dynamism across sectors and contributes to the diversification objectives central to the Emirate’s long-term vision. The expansion of non-oil exports, particularly across pharmaceuticals, metals and food products, strengthens the economic foundation beyond hydrocarbon revenues.

For Abu Dhabi’s business community, the accord opens substantial pathways for growth. SMEs and entrepreneurs gain access to a G7 market of considerable scale, whilst major enterprises engaged in energy, logistics and data centre development benefit from clarified trade terms and investment protections. The emphasis on services reflects Abu Dhabi’s evolving economy, where financial services, technology and digital infrastructure increasingly define competitive advantage.

Source: Emirates News Agency (WAM)