With Canada-UAE ties hitting rock bottom just two years ago, their relationship is manifestly back on track, according to Arif Z. Lalani, Canadian Ambassador to the UAE. He took office just ten months ago and has witnessed a significant turnaround in the bilateral relationship, saying ties are now closer and better than they’ve ever been.
“I would say the reboot was happening when I arrived. And ten months later, we’re well beyond the language of the ‘reboot’,” Lalani tells GN Focus.
“The relationship is stronger than it has ever been. Our trade numbers are bigger than they’ve ever been; we’ve had more ministerial visits between the two countries in the last year than we’ve ever had in the history of our relationship and we’re also much closer in terms of how we see one another.
“And I think particularly in today’s Middle East, we see the UAE as an example of what can be achieved here and certainly one of our most important strategic partners for the future well beyond trade,” he adds.
Among the numerous diplomatic visits and meetings mentioned by Lalani, John Baird, Minister of Foreign Affairs, Canada and >
Shaikh Abdullah Bin Zayed Al Nahyan, Minister of Foreign Affairs for the UAE met at a Tim Hortons coffee shop in Abu Dhabi in April this year. This image is seen as the defining symbol that bilateral ties are truly back on track.
Hitting a snag
Canada-UAE relations have famously suffered from the ongoing aviation landing rights dispute, which began in October 2010.
After a reported five years of negotiations, the Canadian government denied UAE carriers Etihad Airways and Emirates the landing rights to operate more than the current six flights per week to Toronto.
Initially, the UAE responded the same month as the landing rights rebuke by closing its airspace to Peter MacKay, Minister of Defence for Canada and General Walt Natynczyk, Chief of the Defence Staff, who were returning from a three-day visit to Afghanistan.
Then, in January 2011, the UAE government denied Canadian citizens travelling to the UAE the visa-on-arrival option and imposed a pre-application process for all Canadians wanting to obtain 30-day, 90-day and six-month visas and levied fees of up to $1,000 (Dh3,550) on top.
The free visa-on-arrival option was restored for Canadians as of June this year. And the governments are working closely to determine how best to proceed with the aviation quarrel.
Today, Lalani says the two countries are moving upwards from the breakdown. “Countries are always going to have trade issues. But the relationship shouldn’t be defined or derailed by any one matter.
“The aviation issue didn’t stop us from being the largest exporter of agriculture and agro-food to the UAE. It hasn’t stopped Etihad Airways and Air Canada signing the codeshare agreement. It didn’t stop Etihad from purchasing $300 million-worth of simulation machines with CAE, and building training centres, as Emirates also has its regional training centres and strong links with CAE,” he adds.
Flying duo
In March this year, CAE and Emirates celebrated their ten-year -relationship milestone. To date, Emirates has invested approximately $260 million in the Montreal-headquartered simulation and training for civil aviation and defence company. CAE is also currently developing an AW139 simulator for Mubadala and Abu Dhabi Aviation that will be delivered later this year.
Besides aviation, bilateral trade is performing the best it has for years. According to Canadian Embassy data, two-way trade reached $1.65 billion in 2012. Canadian exports to the UAE accounted for $1.45 billion, while $200 million was the figure for UAE exports heading to the North American shelf.
Embassy data also show Canadian exports to the UAE have increased by 13 per cent for H1 of this year, although no precise figures are available yet.
After the fallout in 2010 precipitated a slump of more than $200 million in economic activity between Canada and the UAE, the current numbers are encouraging. Trade figures have steadily increased by $400 million as the relationship has healed.
“The figures make the UAE our largest export partner in the Mena region and the second largest market [overall]. What prevents it from being the biggest is oil imports from other countries,” explains Lalani.Canada is also the largest exporter of agriculture and agri-food products to the UAE.
Moving forward, Lalani highlights oil and gas, sustainable and nuclear energy and innovation as the key commercial areas that will keep relations ticking.
In September, the UAE and Canada signed a nuclear treaty that will allow the latter to supply materials for the country’s expansive nuclear plans. The announcement came at the same time the visa fees were waived by the UAE government. “The nuclear treaty was important symbolically because I think it really launched the reboot in the relationship. It opens the door now for cooperation on nuclear issues. Being an exporter of uranium, Canada can be a leader here in providing technology and capacity for the UAE,” Lalani says.
“There are no contracts signed yet, but the door is wide open and we’re backing our companies to be successful,” he adds.
According to Lalani, the two countries signed two “very significant” Memorandums of Understanding (MoU) in September last year that will define the future of the bilateral relationship. Both of these will feature in the upcoming Canada Innovation Week.
“The first agreement with Sustainable Development Technology – Canada (SDTC) brings a huge adventure capital fund to the table. With the second MoU with the MaRS Discovery District in Toronto, we’re looking to develop sustainably together,” he says.
The two separate MoUs, signed by the Ministry of Economy, aim to foster innovation and research and development to aid the growth of the UAE’s small to medium enterprise (SME) sector.
As reported by Emirates News Agency WAM, Sultan Bin Saeed Al Mansouri, Minister of Economy, said: “The MoUs with MaRS and SDTC will enable exchange of information on the SME sector, including legislation, by-laws, policies and government-sponsored incentives and programmes through institutions or jointly with the private sector.
“More importantly, these agreements will open doors for our young entrepreneurs to engage in the private sector and take the lead in all economic activities.”
