Canada’s efforts to attract billions of dollars in investment from the United Arab Emirates have encountered an unexpected obstacle: a shortage of projects ready to receive funding.
According to reporting by the Financial Times, officials from Prime Minister Mark Carney’s flagship investment agency told a UAE delegation in June that it was too early to deploy capital in Canada because suitable projects were not yet available.
Three Canadian officials, speaking anonymously, said the Calgary-based Major Projects Office (MPO) informed UAE representatives that investment opportunities were still at an early stage and not ready for immediate funding.
“The PM keeps talking about the C$70bn [US$49bn] UAE commitment he secured on his first visit in November. None of that has been deployed,” one Canadian official said.
Carney secured the investment commitment during his November visit to the UAE, where it was announced by UAE President Sheikh Mohamed bin Zayed al-Nahyan and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed al-Nahyan. The UAE, one of the world’s largest holders of sovereign wealth, manages almost $2tn through its investment funds.
However, after Carney hosted a UAE-Canada Business Council meeting in Ottawa in mid-June, members of the Emirati delegation seeking investment opportunities were directed away from the MPO because projects had not yet reached a stage where capital could be committed, according to the officials.
Jean Charest, former premier of Quebec and co-chair of the business council, said the MPO represented only one source of potential projects and that the agency had provided the only answer available under the circumstances.
“They gave them the only answer they could give them, at this point, we’re not ready. But that is the same answer for everyone,” Charest said.
Despite the delay, Charest said Carney had begun changing perceptions that Canada was difficult for major projects to move forward because of regulatory and administrative challenges.
The issue comes as pressure grows on the Canadian government to present investment-ready projects ahead of a Toronto investor summit scheduled for September. The summit aims to generate $1tn in total investment over five years.
A UAE official said proposed investments were naturally progressing through the standard process for foreign investment, including reviews of opportunities, planning and preparation.
“We continue to work closely with Canada on all levels — federal, provincial, and with the private sector,” the official said, describing the Canada-UAE relationship as one of the country’s most important global partnerships.
Since taking office in March last year, Carney has pledged to increase trade with countries outside the United States and transform Canada’s economy into the strongest in the G7. As part of that effort, he created the MPO to accelerate more than 20 major projects valued at approximately C$135bn.
The projects currently being discussed with the UAE remain in the pre-deployment phase, requiring further regulatory approvals, legal reviews, consultations and financing arrangements before investment can proceed.
Carney has also instructed officials to complete a UAE-Canada trade agreement expected to be signed this month. During his November UAE visit, he said a critical minerals agreement worth more than $1bn was close to completion, but nine months later it has not been finalised.
The Canadian Privy Council Office and the MPO did not respond to requests for comment. A spokesperson for International Trade Minister Maninder Sidhu said the government valued its “strong and growing relationship with the UAE”.
The government is continuing to promote large-scale projects as part of its investment strategy. On Thursday, Carney announced a series of initiatives expected to generate more than C$200bn in new direct investment, including a proposed one-million-barrel-per-day oil pipeline from Alberta to British Columbia’s west coast.
Alberta Premier Danielle Smith said private investors remained cautious after three previous pipeline proposals failed to proceed. She said companies had spent billions of dollars navigating unsuccessful regulatory approval processes, creating uncertainty for future investment.
Charest said UAE officials had expressed interest in partnering on the pipeline proposal and were particularly focused on Canada’s energy sector.
Canada’s investment challenges extend beyond individual projects. Industry groups have pointed to regulatory delays, internal trade barriers and competitiveness concerns as obstacles to attracting foreign capital, particularly as trade tensions with the United States continue to affect the economy.
The Canadian Association of Petroleum Producers has called for faster regulatory processes, a more competitive tax system and expanded export infrastructure to encourage investment.
Among the projects being accelerated by the MPO is the Contrecoeur container terminal at the Port of Montreal, which Dubai-based DP World plans to build by 2030. DP World Canada chief operating officer Joel Werner told the Financial Times that the company’s goal was to secure investment approval by the first half of 2027.
Royal Bank of Canada chief executive David McKay said the private sector was waiting for better alignment between governments, Indigenous groups and other stakeholders after years of delays.
As Canada seeks to attract global capital, the government faces the challenge of turning investment commitments into operational projects capable of receiving funds. The UAE commitments remain active, but major deployment decisions depend on Canada’s ability to prepare and advance viable projects.
