Canada, Saudi Arabia Sign $1bn Deals During Carney's Visit

Canadian Prime Minister Mark Carney visited Saudi Arabia on Thursday, making the first Canadian state visit to the Kingdom in more than 25 years. The visit comes as Canada and Saudi Arabia work to strengthen cooperation in mining, energy and other strategic sectors while Canada seeks to expand its global trade partnerships.

Carney's visit followed the NATO summit in Türkiye and reflected Canada's efforts to diversify its trade relationships as tariffs imposed by United States President Donald Trump continue to affect the Canadian economy.

Mining, Energy and AI Agreements to Be Finalised

During the visit, Canada and Saudi Arabia announced plans to deepen cooperation in several key industries. According to Carney's office, agreements related to mining, energy and artificial intelligence will be finalised next year.

The two countries also signed 13 new agreements and memorandums of understanding (MoUs) covering multiple sectors, including health and defence. The combined value of these agreements is $1 billion.

Read More: Saudi Arabia Showcases Responsible AI Ecosystem at WSIS Forum

Some of the agreements are designed to support Canadian companies in developing mining and clean energy projects in Saudi Arabia.

Cooperation on LNG, Hydrogen and Carbon Capture

As part of the visit, Prime Minister Carney met with Amin Nasser, the head of Saudi Aramco.

Carney's office said both countries are working on agreements involving liquefied natural gas (LNG), hydrogen, and carbon capture and storage, highlighting plans to expand cooperation in the energy sector.

The Canadian Prime Minister also led a delegation of Canada's pension funds to explore investment opportunities in Saudi Arabia's energy and artificial intelligence sectors.

Talks With Crown Prince Mohammed bin Salman

Carney held discussions with Saudi Crown Prince Mohammed bin Salman, where both sides signed agreements aimed at expanding cooperation between Canada and Saudi Arabia.

The visit marks another step in rebuilding relations after several years of diplomatic tensions between the two countries.

Diplomatic Relations Improved After Years of Tension

Relations between Canada and Saudi Arabia became strained in 2018 during the government of former Prime Minister Justin Trudeau.

Trudeau had criticised Saudi Arabia over its treatment of human rights activists, including Saudi writer Raif Badawi and his sister, Samar Badawi. In response, Saudi Arabia expelled Canada's ambassador and suspended trade and investment ties.

The two countries began restoring diplomatic relations in 2023.

Carney Defends Canada's Engagement With Saudi Arabia

When asked by reporters why Canada had decided to strengthen relations with Saudi Arabia, Carney said engagement does not mean agreeing with every action taken by another country.

He said, "Engaging with the country doesn't mean that we agree with everything that a country is doing."

Carney added, "We are actively engaging with key partners around the world."

He also said, "Lecturing countries from afar is an ineffective strategy. It's satisfying, but it's ineffective."

Trade Talks With the United States Continue

Reporters also questioned Carney about ongoing trade negotiations with the United States and whether there had been progress in discussions with President Donald Trump amid tensions related to the North American Free Trade Agreement.

Responding briefly, Carney said, "I'll keep you posted."