The UAE and Canada have closed the text of a Comprehensive Economic Partnership Agreement — the 38th CEPA in Abu Dhabi's programme and the first with a G7 economy. Announced on 24 July 2026 at a joint press conference in Canada, the deal cuts barriers on goods, services and investment, and lands on top of a $50 billion UAE investment commitment to Canadian priority sectors.
What was agreed, who signed, and when
Negotiations wrapped in 47 days — one of the fastest rounds among the 38 finalised CEPAs, according to Global Affairs Canada. Dr Thani Al Zeyoudi, UAE Minister of Foreign Trade, and Maninder Sidhu, Canadian Minister of International Trade, announced completion of the negotiating text on Friday, 24 July 2026. Formal signing and ratification come next. Bilateral trade sat at $2.48 billion in 2025, with Canadian exports up 10% year-on-year. Iron and steel products (16%) and aluminium (12%) lead Canada's inbound shipments from the UAE.
Context: why the UAE, why Canada, why now
The UAE Canada trade agreement fits a bigger push. Abu Dhabi is aiming for $1.089 trillion in non-oil foreign trade by 2031, and CEPAs are the main lever — see the UAE 2026 economic outlook for the wider diversification picture. Talks launched in November 2025 during PM Mark Carney's visit to Abu Dhabi, when the $50 billion UAE commitment to Canadian LNG, ports, mines, AI and infrastructure was announced alongside meetings with President Sheikh Mohamed bin Zayed Al Nahyan and Deputy PM Sheikh Abdullah bin Zayed at Al Shati Palace.
On the Canadian side, timing does the talking. The Trump administration announced fresh 50% tariffs on roughly $20 billion of Canadian exports on 20 July 2026 — dairy, alcohol, cement, plywood. The US still absorbs over 70% of Canadian exports. Ottawa wants to double non-US exports to $300 billion by 2035 and unlock $1 trillion of new investment. The UAE 38th CEPA is a clean, fast entry into that plan.
What it means for UAE-based businesses and exporters
For manufacturers and traders operating out of the UAE, the Comprehensive Economic Partnership Canada UAE opens a large, procurement-heavy market with fewer duties on the categories that already dominate exports — iron, steel, aluminium. Free-zone exporters gain a cleaner route into Canadian federal, provincial and infrastructure tenders. Services firms — logistics, engineering consultancy, tech — get certainty on cross-border delivery and investor protections.
Practically: expect faster trade-visa processing on Canada-linked routes, adjustments to export-licensing frameworks, and fresh openings in LNG project supply, port operations and AI verticals under the $50 billion umbrella. For a working look at how CEPAs work for UAE business, the framework mechanics matter more than the headline number.
What it means for Canadian investors and companies eyeing the UAE
The UAE is Canada's largest trading partner in the Middle East — the pact turns that position from statistic into operating advantage. Canadian companies setting up in the UAE gain reduced tariffs, streamlined licensing, and a legal framework for repatriating profits and protecting IP. Free zones in Dubai and Abu Dhabi become an obvious MENA hub for exporters redirecting volume away from a tariff-loaded US market.
The signal matters as much as the paperwork. Canada is the first G7 country in the UAE 38th CEPA portfolio, which already includes India, Turkey, Vietnam, Ukraine, Jordan and Serbia. For Western investors watching from London, Frankfurt or Tokyo, the message is that a G7 economy has stress-tested the UAE's CEPA framework — and closed inside seven weeks.
Voices from the negotiating table
Al Zeyoudi framed the speed as a signal: "This agreement is one of the fastest among the 38 Cepas that we have concluded since we launched the programme, and this is a reflection of the strength of the bonds that exist between our two nations." He added: "I'm looking forward to working together in the months and years ahead to deliver the promise of this landmark and strong and long-term partnership between both nations."
Sidhu tied the deal directly to Canada's diversification agenda: "Our investment agreement gives investors the certainty they need to write those cheques." And on the wider mission: "We are building resiliency in our supply chains and in our trading relationships. We set a mission for ourselves: double our non-US exports to the tune of $300 billion by 2035, and unlock a trillion dollars of new investments."
What's next: signing, ratification, and the CEPA pipeline
The negotiating text is agreed. Signing and ratification follow — on timelines both governments will publish separately, as announced by the UAE Ministry of Foreign Trade. The pipeline stays busy: talks continue with the EU, Bangladesh, Peru, Ghana, Rwanda and Zambia, while the India, Jordan, Serbia, Turkey, Ukraine and Vietnam CEPAs are already in force. As reported by The National, the Canada deal is the most Western-facing entry in the programme to date — a working template for how Abu Dhabi plans to bring more G7 economies into its trade architecture.
