UAE and Canada sign Comprehensive Economic Partnership Agreement

The UAE and Canada signed a Comprehensive Economic Partnership Agreement (CEPA) in Ottawa on 27 October 2026, during the official visit to Canada of His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. The Government of Canada described it as the first-ever visit to Canada by a Crown Prince of Abu Dhabi.

The agreement was signed by UAE Minister of Foreign Trade Dr Thani bin Ahmed Al Zeyoudi and Canada's Minister of International Trade, Maninder Sidhu, with Prime Minister Mark Carney and the Crown Prince of Abu Dhabi in attendance. The two leaders also launched a new UAE-Canada Strategic Partnership, a long-term framework covering economic ties, energy, technology, education and other areas of cooperation.

The key facts

• Signed: 27 October 2026, in Ottawa.
• Speed: according to the Government of Canada, negotiations took 47 days, the fastest either country has concluded for a free trade agreement.
• Tariffs: once fully implemented, the CEPA will reduce or eliminate tariffs on over 99% of current Canadian exports to the UAE.
• Entry into force: the agreement is expected to enter into force in 2027.
• Investment: the Foreign Investment Promotion and Protection Agreement between the two countries was signed in November 2025, and the visit made progress on the UAE investment commitment in Canada first announced that month.
• Other agreements: the visit also produced arrangements on energy cooperation and trade promotion, including an agreement between Invest in Canada and the Abu Dhabi Chamber of Commerce to share information and coordinate visits.

Why it matters for international clients

For Canadian founders, exporters and investors, the agreement adds lower duties and a formal trade framework to the existing advantages of a UAE base and the existing Canada-UAE tax treaty. It also signals deeper long-term commercial ties between the two countries, which supports cross-border investment in both directions.

Canadians already living in or moving to the UAE should note that a trade agreement does not change personal tax residence rules. Leaving Canada still involves departure tax and severing residential ties, so planning the move and the business structure together remains important.

What to do

• If you sell goods between Canada and the UAE, review which products you trade and follow the publication of the tariff schedules and rules of origin ahead of entry into force.
• If you are planning a UAE trading or holding company, consider whether a free zone or mainland licence fits your business. Our guide on free zone or mainland is a useful starting point.
• Make sure the structure works for UAE corporate tax and VAT, and for Canadian rules on payments from a Canadian company to you in the UAE. See our Canada guide and our international tax, corporate tax and company setup services.

Sources

• Prime Minister of Canada: Prime Minister Carney launches new Strategic Partnership with the UAE, welcoming landmark trade agreement and billions in investment (27 October 2026)
• Abu Dhabi Media Office: Crown Prince of Abu Dhabi arrives in Ottawa on official visit to Canada (26 October 2026)
• Al-Monitor: Canada, UAE sign trade pact (27 October 2026)

This page gives general information as at the date shown and is not advice for your specific situation. Rules in other countries are summarised for orientation; your home-country position should be confirmed before you act.