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Prime Minister Mark Carney’s landmark visit to Saudi Arabia marks a significant step towards revitalising ties between Canada and the kingdom, following years of diplomatic tensions. On Thursday, Carney engaged in high-level discussions with Crown Prince Mohammed bin Salman, seeking to enhance bilateral trade and investment opportunities. This trip is particularly noteworthy as it represents the first visit by a Canadian prime minister to Saudi Arabia in 26 years.
A New Chapter in Bilateral Relations
During his time in Jeddah, Carney highlighted the importance of the private sector in maintaining the relationship between the two nations. At a signing ceremony held at the Saudi Arabia-Canada Investment Forum, he remarked, “The private sector has kept the relationship alive. But we’ve barely scratched the potential of the relationship, and today is part of the next phase of building up.” This assertion underscores his commitment to fostering deeper economic ties, signalling a renewed focus on collaboration.
Jeff Steiner, chair of the Canada-Saudi Arabia Business Council, described Carney’s visit as a “high-water mark” for bilateral relations. The backdrop of this diplomatic thaw stems from a contentious period in 2018 when both countries withdrew their ambassadors following critical remarks from the Canadian government regarding Saudi Arabia’s human rights record. With ambassadors reinstated earlier this year, both nations are now keen to explore new avenues for cooperation.
Expanding Opportunities Beyond Oil
Steiner noted that while many Canadians associate Saudi Arabia primarily with oil, the kingdom is diversifying its economy and presenting new opportunities in various sectors, including healthcare, energy, tourism, and education. He emphasized the potential in mining and critical minerals, stating that Saudi Arabia is developing its mining sector as a second economic pillar.
On Thursday, Carney presided over the signing of multiple agreements involving Canadian and Saudi corporations, including well-known engineering firms Hatch and AtkinsRéalis. According to reports from the Saudi state-owned agency Al-Arabiya, these agreements could reach a value of approximately $1 billion. Although Carney’s office has yet to confirm the total figure, the scale of these agreements suggests a significant commitment to future collaboration.
Investment and Infrastructure: A Shared Vision
Before the signing ceremony, Carney and Saudi Investment Minister Fahad Al-Saif addressed the audience, with Al-Saif inviting Canadian expertise in infrastructure, aviation, and mining. “Canada offers capital, technology, and a trusted long-term partner,” he stated, indicating a strong desire for sustained investment in the kingdom.
Carney praised Saudi Arabia’s Vision 2030 economic growth initiative, drawing parallels with Canada’s own goals of diversifying trade and advancing infrastructure and defence projects. He remarked, “When the world throws you a crisis… you keep focused on your long-term plan,” emphasising the importance of strategic foresight in an unpredictable global landscape.
Additionally, Carney announced that a delegation of Canadian pension funds would soon return to Saudi Arabia to explore investment opportunities. He also acknowledged the kingdom’s rising global presence in culture, sport, and technology, calling it a “nexus of global commerce, culture, and creativity.”
Key Delegates and Ongoing Discussions
The Canadian delegation accompanying Carney includes notable figures such as Finance Minister François-Philippe Champagne and Defence Minister David McGuinty. Steiner indicated that Champagne is actively addressing challenges related to double taxation and foreign investment protection between Canada and Saudi Arabia, which are critical for fostering a conducive investment environment.
Carney’s visit, which follows a NATO summit in Ankara, signifies a broader strategy to strengthen Canada’s presence in the Middle East. His meetings included discussions with prominent Saudi officials such as Amin Nasser, CEO of Saudi Aramco, and Bandar al Khorayef, Minister of Industry and Mineral Resources, marking a concerted effort to solidify economic partnerships.
Why it Matters
The implications of Carney’s visit extend beyond mere diplomatic pleasantries; they signal a strategic pivot in Canada’s foreign policy towards Saudi Arabia, one that acknowledges past grievances while embracing future opportunities. As both nations seek to repair and build upon their relationship, the agreements forged during this trip could lay the groundwork for a more robust economic partnership. This newfound collaboration has the potential to unlock significant investment opportunities, enhance trade relations, and foster a deeper understanding between Canadians and Saudis, ultimately benefiting both economies in a rapidly changing global landscape.
