An agreement between Canada and the UAE is reportedly being discussed to boost mutual investment between the two countries. Two agreements currently being negotiated deal with avoidance of double taxation and an air services accord.
The UAE's Ambassador to Canada, Hassan Suwaidi, told reporters at Gulf News that a third agreement, "the Investment Protection Agreement, is in the pipeline. Both countries are working on it and we expect it would be formalized some time next year."
The ambassador added that the agreements were an important step toward boosting investment in the UAE. "There are certain procedures that have to be met, but it is an important treaty as far as attracting investment into the country is concerned."
"It is also important in protecting investment flowing into each others' countries," Suwaidi added.
Many Canadian firms have expressed interest in investing in the UAE's open economy which is flourishing due to rising global oil prices. Some 700 Canadian companies are reportedly present in the UAE.
"For Canadian companies, the safety of their investments is important," Suwaidi said.
He pointed out that UAE investments in Canada were also on the rise in recent years, mainly in the areas of construction, hotels, leisure, industry and the stock markets, while Canadian companies are active in the UAE in sectors such as energy, environment, health, training, education and infrastructure.
"The investments could amount to billions of dollars," he said.
Trade between the UAE and Canada is currently about C$500 million (Dh1.5 billion), a figure that is expected to double in light of recent agreements.In 1999 the UAE opened its embassy in Canada for the first time.