Key facts
- Canada and Saudi Arabia signed 13 new commercial agreements and MoUs worth $700 million.
- Deals cover health technology, mining, infrastructure, defence, and AI.
- Both countries will collaborate on AI infrastructure.
- Canada will appoint a permanent defence attache to Riyadh.
- Saudi Arabia welcomed Canada's recognition of the State of Palestine.
Canadian Prime Minister Mark Carney visited Saudi Arabia for the first time in over 25 years, signing 13 new commercial agreements and memoranda of understanding worth $700 million. The deals span health technology, mining, infrastructure, defence, and artificial intelligence, with both countries committing to collaborate on AI infrastructure. Carney described the two nations as "complementary economies with shared ambitions," seeking to diversify Canada's trade partnerships amid changing global dynamics and soured relations with the United States under President Donald Trump.
The agreements include Canadian firms supporting mining, critical minerals, and clean energy projects in Saudi Arabia, participation in Vision 2030 infrastructure projects, and the supply of intelligent medical tools. Cooperation will also be strengthened in liquefied natural gas, renewable energy, and carbon capture and storage. On AI, Canada's Cohere and Saudi Arabia's HUMAIN will collaborate on building AI infrastructure for next-generation models.
Discussions also covered a Foreign Investment Promotion and Protection Agreement, expected to conclude by early 2027, and a new double taxation agreement. A Canada-Saudi Arabia Coordination Council will oversee these projects. Carney announced the appointment of a permanent defence attache to Riyadh to boost Canadian weapons exports.
Regionally, both leaders condemned attacks on the Strait of Hormuz and expressed support for the US war on Iran. Canada backed the Saudi-backed government in Yemen and called for stability in the Red Sea. Saudi Arabia welcomed Canada's recognition of the State of Palestine and urged humanitarian aid delivery to Gaza. On Sudan, both leaders emphasized respecting the country's sovereignty and stability, with Canada having processed 27,000 visas for Sudanese citizens and provided over $150 million in humanitarian aid.
The visit marks a significant warming of relations after a diplomatic row in 2018, which led to disruptions in healthcare systems and the recall of Saudi students from Canada. Diplomatic relations were restored in May 2023 after the release of Saudi activists Samar and Raif Badawi.