UAE–Canada Trade Deal Signed: What the First G7 CEPA Means for Dubai Founders and SMEs

DUBAI — The UAE has signed its first trade agreement with a G7 country. On October 27, Canada’s Minister of International Trade, Maninder Sidhu, and UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi signed the Canada–UAE Comprehensive Economic Partnership Agreement (CEPA) in Ottawa, according to Global Affairs Canada. The signing took place during the first-ever visit to Canada by a Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

The deal is signed but not yet in force. Canada’s Prime Minister’s Office says it is expected to take effect in 2027. Negotiations wrapped up in a record 47 days, which the Canadian government calls the fastest either country has ever negotiated a free trade agreement.

The Headline Numbers

Al Zeyoudi told WAM, via Zawya, that the UAE expects the agreement to:

• Add about US$8.7 billion to UAE GDP by 2033.
• Raise UAE exports to Canada by around US$11.8 billion by 2033.
• Cover about 99% of existing bilateral trade by value and 97% of tariff lines.

He said non-oil trade between the two countries reached about US$4.2 billion last year, up more than 22%, and grew another 18% in the first half of this year. Emirati and Canadian companies are also negotiating trade and investment deals worth about US$15 billion. ARN News Centre reports that those talks cover mining, logistics, energy and sovereign wealth fund investment.

What’s Actually in the Deal

Canada’s summary of negotiated outcomes covers more than goods. For founders, these chapters stand out:

• Tariffs. Once fully implemented, the agreement removes duties on over 97% of tariff lines, covering more than 99% of current Canadian exports to the UAE. When it takes effect, the UAE will give preferential access on 93.4% of tariff lines, with more phased in over three to five years in some categories.
• Services. A chapter on cross-border trade in services includes market access and national treatment commitments in areas such as professional services, environmental services and R&D. A review to deepen services liberalisation is set to begin three years after the deal takes effect.
• Digital trade. Commitments cover cross-border data flows, a ban on data localisation requirements, no customs duties on electronic transmissions, personal data protection and online consumer protection.
• Business travel. A chapter on temporary entry covers short-term business visitors, intra-company transferees and their spouses, and service suppliers in sectors such as engineering and ICT.
• SMEs. A dedicated chapter sets up information sharing, cooperation and official contact points to help smaller firms use the agreement.
• Financial services. An annex creates a framework for the fair and transparent treatment of financial service providers.

Al Zeyoudi pointed to opportunities for SMEs and entrepreneurs and to the focus on services. He said Canada sees the UAE as a gateway to the Middle East and Africa, and the UAE sees Canada as a route to expand investment there and reach the US market.

Which Goods Benefit

According to WAM, UAE exports to Canada that stand to benefit include iron, aluminium, metals, gold, some electronics, pharmaceuticals and food products. On the Canadian side, the Canadian government highlights pulses, canola, industrial machinery, power generation equipment and aerospace. Al Zeyoudi said Canadian goods such as machinery and spare parts could also be processed or manufactured further in the UAE and re-exported.

Data centres are expected to be a major investment priority in the next phase, he said.

What Dubai Founders Should Do Now

This is our editorial reading.

• Use the run-up to 2027. Nothing changes at the border until the deal takes effect. That gives exporters time to check whether their products qualify under the agreement’s rules of origin and to line up Canadian distributors.
• Watch the digital chapter. For software, fintech and AI companies, the commitments on data flows and against data localisation may matter more than tariffs. Once in force, they make it easier to serve Canadian customers from Dubai.
• Look at the talent route. The business travel provisions could make it simpler to send engineers or ICT specialists to Canadian clients. Check the eligibility criteria before planning around them.
• Expect more deals. ARN reports Al Zeyoudi expects other trade agreements to be fast-tracked, and he told WAM that negotiations with other G7 countries have been completed. Founders selling across borders should watch for new announcements. Canada tracks the agreement’s status on its official CEPA page.

Figures come from Global Affairs Canada, the Prime Minister of Canada’s office, WAM via Zawya and ARN News Centre as of October 29, 2026. Tariff schedules and implementation dates depend on ratification.