Prime Minister Mark Carney has embarked on a significant diplomatic visit to Saudi Arabia, marking the first trip by a Canadian prime minister to the nation in nearly three decades. This visit is pivotal in rejuvenating bilateral trade and investment ties that have languished following a diplomatic spat in 2018. Hosted by Crown Prince Mohammed bin Salman, Carney’s journey aims to explore new opportunities for collaboration, particularly in sectors beyond oil.
Historic Engagement
Carney’s arrival in Jeddah, a bustling port city on the Red Sea, represents a turning point in Canada-Saudi relations. During an official welcome ceremony, the Prime Minister engaged with both the Crown Prince and leading business figures, underscoring the importance of the private sector in sustaining ties between the two nations. At the Saudi Arabia-Canada Investment Forum, Carney 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.”
Jeff Steiner, chair of the Canada-Saudi Arabia Business Council, echoed this sentiment, describing Carney’s visit as a “high-water mark” for bilateral relations. The Prime Minister’s efforts to mend fences come after a diplomatic crisis that saw both countries withdraw their ambassadors following sharp criticisms from the Trudeau administration regarding Saudi Arabia’s human rights record.
Expanding Opportunities Beyond Oil
Steiner highlighted the necessity of broadening the Canadian perspective on Saudi Arabia, stating that while many Canadians primarily associate the kingdom with oil, there exist substantial prospects in healthcare, education, energy, and tourism. “Saudi Arabia is making mining their second pillar,” he noted, emphasising the potential for Canadian expertise in critical minerals and resource management.
Foreign Affairs Minister Anita Anand, accompanying Carney, reiterated the importance of addressing human rights concerns during her discussions in Saudi Arabia. “Engagement doesn’t mean endorsement,” she stated. “It is necessary in order to fulfil the intentions of Canadian values.” Carney echoed this view, asserting the need for constructive engagement rather than distant lecturing, which he characterised as ultimately ineffective.
New Agreements and Future Collaborations
A highlight of Carney’s visit was the signing of over 13 new commercial agreements with Saudi entities, valued at more than $1 billion. This includes partnerships with prominent Canadian engineering firms such as Hatch and AtkinsRéalis. The Saudi Investment Minister, Fahad Al-Saif, expressed optimism about long-term investments from Canada, noting the potential for collaboration in infrastructure and mining.
“Canada offers capital, technology, and a trusted long-term partner,” Al-Saif stated, while Carney acknowledged the kingdom’s ambitious Vision 2030 economic plan. He emphasised the shared goals of diversifying economies and expanding infrastructure, stating, “When the world throws you a crisis… you keep focused on your long-term plan.”
A Broader Vision for Saudi-Canadian Relations
Throughout the discussions, Carney also met with influential figures such as Saudi Aramco’s CEO Amin Nasser and Minister of Industry and Mineral Resources Bandar al Khorayef. He lauded Saudi Arabia’s growing cultural and sporting influence, suggesting that the kingdom is evolving into a hub for global commerce and creativity.
As part of a broader strategy, Carney mentioned that a delegation of Canadian pension funds would soon revisit Saudi Arabia to explore further investment opportunities, signalling a commitment to deepening economic ties.
Why it Matters
This renewed engagement between Canada and Saudi Arabia opens doors for greater economic collaboration, potentially benefiting both nations as they navigate a complex global landscape. For Canada, diversifying international partnerships is crucial for economic resilience, while Saudi Arabia stands to gain from Canadian expertise in various sectors. As both countries work to overcome past tensions, the future of their relationship hinges on a shared commitment to mutual growth and understanding, reflecting a significant shift in diplomatic strategy that prioritises pragmatism over dogma.
