Prime Minister Mark Carney concluded a visit to Jeddah on Thursday, the first by a Canadian leader in over a quarter-century, with the announcement of a Saudi-Canadian Coordination Council and the signing of 13 commercial agreements spanning mining, artificial intelligence, education and infrastructure. A joint statement confirmed that the two governments will begin negotiations on a double taxation avoidance agreement and aim to finalise an investment protection accord by early 2027. Saudi state media reported that the new council, to be chaired by the two foreign ministers, will drive cooperation in political, defence, economic and cultural fields.

Speaking at the Saudi-Canadian Investment Forum, Carney described the relationship as having “barely scratched the potential” and framed the rapprochement as part of a deliberate strategy to reduce Canada’s economic dependence on the United States. “Engagement is not endorsement,” he told reporters, adding that “lecturing countries from afar is an ineffective strategy.” Saudi Investment Minister Fahad Al-Saif, addressing the same forum, said the Kingdom was entering a “new phase of economic and investment partnership” with Canada, noting that 625 Canadian firms now operate in the country and that non-oil activities account for more than half of Saudi GDP. Canadian business executives present in Jeddah welcomed the visit as a “high point” in bilateral ties, with the chair of the Canada-Saudi Business Council citing restored trust as the basis for exploring opportunities in mining, health and tourism.

The visit also carried a security dimension. Canadian Foreign Minister Anita Anand said the trip aimed to stand in solidarity with Gulf partners facing “unjustified attacks by Iran,” a reference to a recent strike on a Saudi crude tanker in the Strait of Hormuz. The joint statement committed both sides to enhanced defence cooperation, including cybersecurity and counter-terrorism. Viewed from Riyadh, the visit consolidates a broader effort to attract foreign investment and technical expertise for Crown Prince Mohammed bin Salman’s Vision 2030 economic transformation plan, which seeks to position mining as a second pillar of the economy alongside hydrocarbons. For Ottawa, the outreach is part of a year-long push to diversify trade relationships after US tariffs on key exports underscored the risks of over-reliance on the American market.

The visit marks the culmination of a gradual normalisation that began in 2023, when the two countries restored full diplomatic ties five years after a rupture triggered by Ottawa’s public criticism of Saudi human rights practices. The 2018 dispute had led Riyadh to expel the Canadian ambassador and freeze all new trade and investment. Since then, bilateral trade has exceeded $20 billion since 2020, according to the joint statement. The next concrete steps include Saudi Arabia’s sovereign wealth fund attending the Canada Investment Summit in Toronto in September, Canada’s participation in Expo 2030 in Riyadh, and the start of negotiations on the investment protection agreement, with a target completion date of early 2027.