Canada and Saudi Arabia Deepen Mining and Energy Partnership
During a visit to Saudi Arabia, Canada's Prime Minister signed over CAD 1 billion in trade and investment agreements, emphasizing the expansion of bilateral cooperation in the sectors of mining, critical minerals, energy, and technology—a move assessed as part of Ottawa's strategy to reduce dependence on the US market and leverage Riyadh's economic capacities.
According to a report by Ma’adan News, Mark Carney, Canada’s Prime Minister, during his official visit to Saudi Arabia, announced that Riyadh could play a significant role in the growth of Canada’s mining and energy sectors; simultaneously, the two countries signed over CAD 1 billion (equivalent to USD 710 million) in trade agreements aimed at developing bilateral trade and investment.
Carney, who is the first Canadian prime minister in 26 years to visit Saudi Arabia, met and held talks with Crown Prince Mohammed bin Salman in Jeddah. Based on the agreements reached, the two sides have decided to expand their cooperation in the fields of mining, critical minerals, energy, artificial intelligence, defense, health, and education.
This cooperation package includes 13 trade agreements and memoranda of understanding. The two countries have also committed to negotiating a foreign investment protection agreement by the end of 2027 and to initiating discussions for signing a double taxation avoidance treaty.
During his visit, the Canadian Prime Minister also met with Amin Nasser, CEO of Saudi Aramco, to explore avenues for closer cooperation in the energy sector.
Carney stated in this regard that both Canada and Saudi Arabia have embarked on ambitious economic transformation programs and can now benefit from each other’s capacities in areas such as mining, minerals, technology, energy, and trade. He emphasized that Canada possesses resources and capabilities that the global market needs.
These agreements can be seen as a fresh sign of improving relations between Ottawa and Riyadh—relations that were fully restored in 2023 following a five-year dispute over human rights issues.
For the Canadian government, this partnership is part of a broader strategy to reduce dependence on the US market, particularly under circumstances where tariffs imposed on some key Canadian exports have put pressure on the country’s trade. In return, Saudi Arabia, within the framework of its “Vision 2030” program and relying on an economy valued at approximately USD 1.8 trillion and a sovereign wealth fund exceeding USD 1 trillion, is seeking to attract major investments and diversify its economy.
Under these agreements, Canadian companies are positioned to participate in Saudi mining, critical minerals, infrastructure, and clean energy projects. Cooperation will also be expanded in areas such as liquefied natural gas, hydrogen, renewable energy, and carbon capture.
In the technology sector, the AI company “Cohere” has announced a strategic computing partnership with the Saudi company “Humin.” Meanwhile, BlackBerry and Aramco Digital have also begun exploring joint opportunities in secure communications and industrial technology.
Carney also announced that, as part of this process, he will lead a delegation from Canadian pension funds to explore investment opportunities in Saudi Arabia. He also confirmed Canada’s participation in Riyadh Expo 2030 and announced Ottawa’s decision to station a resident defense attaché in the Saudi capital to strengthen military and trade relations.