Reports that the United Arab Emirates is walking away from a planned $70-billion investment in Canada are false, according to Jean Charest, co-chair of the Canada-U.A.E. Business Council. The former Quebec premier said in a phone interview Tuesday that the Emiratis remain determined and eager to invest, contrary to a Financial Times headline suggesting Canada told the UAE it was not ready for the funds.
Origin of the $70-Billion Offer
Prime Minister Mark Carney visited the United Arab Emirates last November seeking to expand trade. During that trip, Emirati officials unexpectedly offered to invest $70 billion in Canada over the coming years. “It wasn’t expected, they hadn’t given us a heads up,” Charest said. The offer covered general areas such as energy, strategic minerals, and infrastructure, without specific project commitments at the time.
“Canada is diversifying our trade and finding new investors to fuel our plans to build Canada strong,” Carney said in November after the trip.
Misinterpretation of Major Projects Office Meeting
A June meeting between UAE officials and Canada’s Major Projects Office sparked headlines that the investment was paused. The office told Emirati officials it had no shovel-ready projects needing immediate funding. However, Charest dismissed any notion that this derailed the broader investment plan. “No one was phased by that,” he said, noting the office is just one avenue for potential projects.
Charest emphasized that many other opportunities exist. “There’s a number of projects in other areas: Energy projects in Alberta, strategic minerals,” he said. He also highlighted the $2.3-billion expansion of the Port of Contrecoeur in Quebec, halfway between Montreal and Trois-Rivières, as a potential investment target. Dubai-based DP World, which handles about 10% of global container traffic, has already signed on to manage container operations at the port. DP World already has facilities in Vancouver, Saint John, Nanaimo, and Prince Rupert.
Existing UAE Investments in Canada
Sovereign wealth funds from the UAE, including the Abu Dhabi Investment Authority and Mubadala Investment Company, already have significant stakes in Canadian firms. Mubadala spent $4.7 billion to take CI Financial private last year and acquired logistics firm Canada Cartage in 2022. Since 2009, Calgary-based Nova Chemicals has been controlled by Mubadala or its predecessors.
Charest noted that Alberta is likely to be a prime destination for UAE investment, given its LNG operations, pipelines, AI data centres, and critical mineral mining, as well as existing ties through the oil industry.
Upcoming Investment Summit
Charest confirmed that UAE investment officials will return to Canada in September for an investment summit hosted by Prime Minister Carney in Toronto on Sept. 14 and 15. Carney has invited top pension funds, private investment companies, and sovereign wealth funds, including UAE vehicles, with an “ambitious plan to catalyze $1 trillion in total investment in Canada over the next five years.”
Whether that target is achievable remains to be seen, but Charest was unequivocal about the UAE’s commitment: “From my experience, they are very determined, very professional, very eager to invest.” He called reports of the UAE walking away “fake news.”
