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Canada and UAE Sign Exploratory AI Pact Focused on Data Centres and Investment

The non-binding deal frames investment talks with an emphasis on data sovereignty.

Overview

  • Federal AI Minister Evan Solomon and UAE Investment Minister Mohamed Hassan Alsuwaidi signed the memorandum of understanding on Tuesday in Abu Dhabi.
  • The agreement explores collaboration in digital infrastructure, prioritizing Canadian data centres and AI projects, with provisions to exchange technical expertise and support responsible AI development.
  • Ottawa is courting Emirati capital from firms and sovereign funds including MGX, G42, Mubadala and ADQ to build or co-invest in Canadian infrastructure, as Canadian companies such as Cohere, OpenText, Telus Digital and BlackBerry expand regional ties.
  • Canada is stressing sovereign control over data and cloud services, with Solomon acknowledging U.S.-flagged security questions about G42 and saying the government’s “eyes are wide open.”
  • The pact fits a broader push to deepen economic links—two-way trade totals about C$3.4 billion—as Solomon met senior UAE officials at GITEX and said Prime Minister Mark Carney will visit the region to advance ties.