The United Arab Emirates’ recently signed Comprehensive Economic Partnership Agreement (CEPA) with Canada is projected to add approximately $8.7 billion to the UAE’s gross domestic product and boost its exports to Canada by around $11.8 billion by 2033, according to Dr. Thani Bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade.
This agreement marks the UAE’s first CEPA with a Group of Seven (G7) nation and follows the completion of similar work with other G7 countries, with Canada becoming the initial partner to reach the signing stage. The agreement was formalized in the presence of Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, and Canadian Prime Minister Mark Carney during Sheikh Khaled’s official visit to Canada. It was signed by Al Zeyoudi and Canada’s Minister of International Trade, Maninder Sidhu.
Once ratified and enacted, the CEPA aims to liberalize trade by covering roughly 99 percent of the current bilateral trade value and 97 percent of tariff lines, which refers to product classifications used in customs tariffs. The agreement is designed to reduce or eliminate tariffs, enhance market access, simplify customs procedures, facilitate trade in services, and improve the investment climate between the two countries.
Key UAE export sectors anticipated to benefit include iron, aluminum, other metals, gold, pharmaceuticals, electronic products, and food items. Canadian exporters are expected to gain increased access for machinery, electronic equipment, spare parts, and food products. Al Zeyoudi also noted potential growth in manufacturing and re-export opportunities through UAE-based hubs.
Bilateral non-oil trade between the UAE and Canada reached 5.9 billion Canadian dollars (about $4.2 billion) in 2025 and totaled 2.85 billion Canadian dollars (approximately $2.03 billion) in the first half of 2026. Canada is currently the UAE’s third-largest trading partner in the Americas, while the UAE holds the position as Canada’s largest Arab trading partner.
Additionally, Emirati firms are engaged in ongoing trade and investment discussions with Canadian counterparts representing transactions valued up to 21.1 billion Canadian dollars (around $15 billion). These negotiations encompass sectors such as mining, logistics, energy, and investments in sovereign wealth funds, underscoring the growing economic relationship between the two countries.