Canada tells UAE it has no projects ready for billions in pledged investment - report
The gap between promise and delivery highlights the challenges facing Prime Minister Mark Carney's push to diversify Canada's investment base beyond the United States
Canada's Major Projects Office told a United Arab Emirates delegation in mid-June that the country was not yet ready to receive billions of dollars in pledged investment, according to the Financial Times, citing three anonymous officials. The Calgary-based agency turned away Emirati officials seeking investment opportunities during a UAE-Canada Business Council meeting hosted by Prime Minister Mark Carney in Ottawa, citing a lack of projects at a stage where funds could be deployed.
Carney secured a $50 billion commitment from UAE President Sheikh Mohamed bin Zayed al-Nahyan and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed al-Nahyan in November, but officials say none of that funding has been deployed. "The PM keeps talking about the $50bn UAE commitment he secured on his first visit in November. None of that has been deployed," one Canadian official said.
Former Quebec premier Jean Charest, co-chair of the UAE-Canada Business Council, said the Major Projects Office was "only one bucket of potential projects" and that the same answer applied to all investors currently, not just the UAE. He said the delegation had expressed interest in partnering on energy projects, including a proposed pipeline from Alberta to British Columbia.
Since taking office in March last year, Carney has pledged to double trade with non-US partners and has established the Major Projects Office to fast-track more than 20 projects worth a combined $135 billion. He has also ordered staff to finalize a UAE-Canada trade agreement expected to be signed this month, though a critical minerals deal he announced in November has yet to materialize nine months later.
Pressure is mounting on Carney to present "shovel-ready" projects at a Toronto investor summit in September, which aims to generate $1 trillion in investment over five years. Canada is also facing structural obstacles beyond the UAE talks, including regulatory red tape and interprovincial trade barriers, which industry groups say pose a bigger challenge to investment than US tariffs.
The UAE's Ministry of Foreign Affairs did not respond to a request for comment.