Commentary & Analysis

Prime Minister Mark Carney's visit to Jeddah, Saudi Arabia, in July 2026 marked a significant milestone in the evolution of Saudi-Canada relations. As the first visit by a Canadian prime minister to Saudi Arabia in 26 years, it signaled Canada’s deliberate and strategic pivot to the Kingdom. The visit involved extensive diplomatic meetings and the signing of multiple commercial agreements, establishing a framework for cooperation across trade, technology, mining and natural resources, energy, health, education, people-to-people ties, and defense. This analysis examines the outcomes of the visit and their implications for the bilateral partnership and regional security.

Institutionalizing Diplomatic and Political Cooperation

A primary result of the meetings between Prime Minister Carney and Crown Prince and Prime Minister H.R.H. Mohammed bin Salman was the decision to formalize diplomatic engagement through new institutional channels. The two leaders agreed to establish a Canada-Saudi Arabia Coordination Council, which will be co-chaired by their respective foreign ministers. This council is intended to provide a structured environment for regular dialogue on political, security and defense, economic, trade and investment, cultural, educational, scientific, and consular priorities. Alongside the council, a Joint Working Document was introduced to serve as a technical roadmap for these collaborative efforts.

These mechanisms move the relationship away from occasional interactions toward a more predictable and sustained engagement. The joint statement released during the visit emphasized a shared interest in delivering results that support Canada's economic growth and Saudi Arabia's Vision 2030. By creating these formal structures, both governments are attempting to ensure that the commitments made during the visit lead to long-term cooperation rather than remain isolated events. In other words, the focus is now on pragmatic coordination to address common interests in trade, investment, and regional stability.

Expansion of Economic Ties and Investment Frameworks

Economic cooperation was a major focus of the visit, with both nations seeking to increase bilateral trade and investment. During the trip, Canadian and Saudi entities signed 13 commercial agreements and memoranda of understanding (MOUs) worth a total value exceeding US$1 billion.

These agreements cover sectors including health technology, mining, infrastructure, and defense. For example, Canadian infrastructure firms are expected to participate in projects related to Vision 2030, such as the development of road and rail networks, while health technology companies will deploy patient-monitoring and surgical-intelligence platforms.

To support this economic activity, the two countries agreed to finish negotiations on a Foreign Investment Promotion and Protection Agreement (FIPA) by early 2027 and have started talks on a Double Taxation Agreement. These measures are designed to facilitate two-way investment, reduce regulatory barriers, and provide greater certainty for businesses operating in both markets. The Saudi Arabia-Canada Investment Forum highlighted the current trade volume, which has exceeded US$20 billion since 2020, showcasing the growing economic momentum between the two countries. Prime Minister Carney also announced that a delegation of Canadian pension funds would visit the Kingdom to evaluate long-term investment opportunities in energy and artificial intelligence.

Collaboration in Energy, Mining, and Artificial Intelligence

The visit resulted in several agreements targeting specific industries where both countries have complementary interests. A new MOU on Energy Cooperation focuses on both traditional and clean energy sources. This includes collaboration on liquefied natural gas (LNG) projects in Canada, as well as hydrogen, renewable energy, and carbon capture and storage technologies. The agreement also covers technical areas such as cybersecurity for energy infrastructure and the development of resilient supply chains. This cooperation reflects the broader global trend of energy transition and the need for secure energy markets.

In the mining sector, the visit built upon an existing critical minerals agreement from January 2026. Canadian companies already hold a large portion of the mining exploration licenses issued by the Kingdom, and the new commitments aim to expand this work into processing technologies and advanced manufacturing. Furthermore, the two sides signed an MOU on Artificial Intelligence (AI) Investment and Skills Development. This agreement supports joint investment in AI and the creation of training programs for the workforce. Specific private-sector projects were also highlighted, such as the collaboration between Cohere and HUMAIN to build sovereign AI infrastructure, and discussions between BlackBerry and Aramco Digital regarding secure communications.

Defense Coordination and Regional Security

Defense and security were also central to the discussions in Jeddah. The two governments committed to finalizing a formal MOU on Defense Cooperation and expanding their work on cybersecurity and counterterrorism. A notable development is Canada's decision to establish a resident Defense Attaché in Riyadh. This move is intended to facilitate deeper institutional engagement and potentially increase exports from Canada's defense sector.

The leaders also addressed broader regional issues, showing a degree of alignment on security priorities. They issued a joint condemnation of the July 7, 2026 attacks on commercial vessels in the Strait of Hormuz, describing them as violations of international law and threats to global energy supplies. Canada expressed its readiness to support maritime security efforts through maritime logistics, cyber support, demining expertise, and satellite imagery. On other regional matters, the two sides reaffirmed their commitment to a two-state solution and the delivery of humanitarian assistance to Palestine. They also discussed the situation in Yemen, supporting efforts for a political settlement, and emphasized the importance of Sudan's sovereignty, unity, and territorial integrity.

Education, Connectivity, and People-to-People Exchanges

The visit included initiatives to strengthen social and educational ties between the two nations. Canada confirmed its participation in Expo 2030, which will be held in Riyadh, as a way to showcase Canadian technology and expertise. In the field of education, the two countries are advancing a partnership to support the professional development of Saudi educators, particularly in early childhood and English language educators. These programs are designed to support the Kingdom's goal of developing its human capital as part of Vision 2030.

Connectivity between the two countries is also expected to increase following the expansion of the Air Transport Agreement concluded in November 2025, which permits up to 14 weekly passenger flights per country and unlimited weekly allcargo services. Both leaders noted that these flights are necessary for supporting tourism, business travel, and commercial exchange. Additionally, the 2034 FIFA World Cup, which Saudi Arabia is preparing to host, was mentioned as a future opportunity for bilateral collaboration, following Canada's role as a co-host for the 2026 tournament.

Analysis of the Relationship's Trajectory

The outcomes of the July 2026 visit indicate that Canada and Saudi Arabia are moving toward a more comprehensive and institutionalized relationship. By establishing the Coordination Council and signing a wide range of MOUs, both sides are creating a framework that provides a stronger institutional foundation for longterm engagement, reflecting a growing alignment between Saudi Arabia's Vision 2030 and Canada's efforts to diversify its economic and strategic partnerships. This approach allows for cooperation on practical issues like trade, energy, and technology while maintaining a channel for discussing security and diplomatic issues.

Furthermore, the focus on regional security suggests that Canada is becoming more active in the Gulf. The joint condemnation of maritime attacks and the appointment of a Defense Attaché show a willingness to engage on issues that directly affect global energy security and supply chains. As the regional environment remains complex, this deepened partnership provides Canada with a more direct role in the region. Overall, the visit marks the beginning of a period of pragmatic engagement, where both nations prioritize mutual economic and security interests through formal and sustained cooperation. As the world navigates a rapidly changing global landscape, the strengthened Canada-Saudi Arabia partnership is poised to contribute to greater security and prosperity for both countries and the broader international community.

*Amnah Mosly is a Researcher at the Gulf Research Center (GRC)