Carney Secures UAE Investment Pact, Opens Trade Negotiations Amid Controversy Over Sudan Conflict

A waving Canadian flag against a blue sky.

Prime Minister Mark Carney on Thursday signed an investment-protection agreement with the United Arab Emirates during a tightly controlled visit to Abu Dhabi, where media access has been limited amid rising concern that the UAE is contributing to ethnic violence in Sudan.

Carney Secures UAE Investment Pact, Opens Trade Negotiations Amid Controversy Over Sudan Conflict

The pact was announced after Carney met with UAE President Sheikh Mohamed bin Zayed Al Nahyan. The two leaders also kicked off negotiations toward a broader trade agreement, with the goal of forming a comprehensive economic partnership.

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Earlier in the day, Carney met with Industry Minister Sultan al-Jaber and toured the lavish Sheikh Zayed Grand Mosque. His itinerary also included meetings with major Emirati sovereign wealth funds and investment firms such as Mubadala, MGX, ADQ and ADIC, followed by a dinner hosted by the UAE’s national security adviser.

The trip comes just a month after Canada and the UAE formalized a partnership to strengthen cooperation on artificial intelligence and data-centre development.

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Janice Stein, founding director of the Munk School of Global Affairs at the University of Toronto, said the UAE is emerging as a global AI leader and can offer Canada both capital and innovation. She noted that government officials in the Emirates have been eager for Carney — whose résumé includes central banking and UN diplomacy — to visit.

“It’s very forward-looking for the prime minister to come early,” she said. “They know him well from his prior roles, and this is absolutely the right move.”

Stein highlighted the UAE’s strategy of leveraging cheap energy for data-centre growth — a model similar to what Alberta’s oilsands producers envision — and said the country is becoming a major global AI hub.

The UAE has also received assurances from U.S. President Donald Trump that it will gain access to advanced American chip technology, despite internal U.S. concerns over Emirati ties with China.

Former Quebec premier Jean Charest, co-chair of the Canada-UAE Business Council, said Carney’s visit sets the stage for a full trade pact. He told reporters that investment agreements often precede trade deals, and he expects negotiations with the UAE to be relatively smooth.

“The prime minister has to lead if Canada wants trade agreements with new regions,” Charest said, noting that UAE investors already hold significant stakes in Canadian infrastructure. He added that the Emirates aims to become the financial hub of the Gulf, making its economy a natural partner for Canada.

Carney’s brief comments at the mosque were his only public remarks of the day. Emirati officials barred media from bilateral meetings that are typically open to travelling journalists, and no press conference is planned.

The restricted access coincides with renewed scrutiny of the UAE over allegations it supports the Rapid Support Forces, a militia accused of severe ethnic atrocities in Sudan’s ongoing civil war. The UAE denies the accusations, despite a UN report pointing to “credible” evidence of arms transfers.

A readout of Carney’s meeting with Sheikh Mohamed referenced discussions on Palestine but made no mention of Sudan.

Stein noted that while the UAE plays a significant role in supporting the RSF, it has also been instrumental in encouraging a ceasefire proposal backed by the Trump administration — cooperation not matched by Sudan’s military leadership.

After his meetings in Abu Dhabi, Carney is scheduled to address the Canada-UAE Business Council on Friday before travelling to Johannesburg for the G20 leaders’ summit in South Africa.

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