The trading relationship with Canada and the UAE has been a complex one over the years but recently there have been significant signs that their trading ties will continue to flourish in 2015 and beyond. With Canada recognizing the UAE as a priority market, this particular marketplace has become one of the biggest export markets included in Canada’s ‘Global Markets Action Plan’.
In an interview with oil and gas magazine Pipeline they spoke with Canada’s ambassador to the UAE, Arif Z. Lalani about the current trade relationship between the two countries. With Lalani documenting that the partnership between the two countries “is stronger than it has ever been.” With the Canada reportedly being one of the leading investors in the UAE, the bond between the two runs deep, along with the fact that there are currently approximately 40,000 Canadians that work or live in the country because of the booming oil industry in the UAE.
Over 150 Canadian businesses currently undertake their main operations out of the country due to its reported “business-friendly environment and extensive regional links,” according to Lalani. But its not just Lalani who is enthusing about the current partnership, Sheikh Abdullah made a week-long trip to Canada back in July 2014 for a trade delegation that marked 40-years of diplomatic relations between the two countries.
It comes as welcomed news for Canada that the UAE sees the two’s strategic partnership flourishing in the future as recently FT reported that the Canadian oil sector will be forced to make cuts of up to 33% due to the rapid fall in crude oil prices. It’s partnerships such as the one with the UAE will help subsidize the drop in capital spending in the industry especially in Western Canada.
Experts predict that such a slump could affect the industry up until 2017, so it’s vital that the strength of relations with the UAE remains in place to maintain a healthy production of oil, gas and other energy sources. But with so much money tied up in the infrastructure of Canadian oil fields, it’s not likely to force any closures, just a slow down in construction and production rates.