MENA sovereign wealth funds have deployed over $70 billion into Canadian assets since 2020. Here’s what’s driving the investment surge and why Canada has become a top destination for Middle Eastern capital.
Canada is emerging as a premier destination for foreign direct investment from the Middle East and North Africa. Between 2020 and 2025, MENA investors committed more than $70 billion to Canadian businesses across energy, petrochemicals, financial services, and medical technology. This represents a fundamental shift in cross border capital flows, with Gulf sovereign wealth funds now viewing Canada as a strategic priority for economic diversification.
The numbers tell a compelling story. The UAE alone has committed $50 billion in new investments through a landmark framework agreement signed in November 2025. Abu Dhabi’s Mubadala Investment Company executed a $12.1 billion take private of CI Financial. ADNOC acquired Calgary based Nova Chemicals for $13.4 billion. Qatar Investment Authority deployed $800 million into Canadian critical minerals and medtech companies in a single year.
For investors seeking stable, resource rich markets with strong regulatory frameworks, Canada offers a compelling value proposition that Gulf capital is now actively pursuing.
Why Canada? The Investment Case for MENA Capital
Canada presents a unique combination of factors that make it increasingly attractive to MENA sovereign wealth funds seeking to deploy capital outside traditional Western European and American markets.
Political and Economic Stability
Canada’s total foreign direct investment stock reached CAD $1,502.5 billion in 2024, reflecting the country’s established reputation as a safe haven for international capital. The rule of law, transparent regulatory environment, and stable democratic institutions provide the predictability that sovereign wealth funds require for long term investments.
Natural Resource Abundance
Canada holds globally significant deposits of oil, natural gas, copper, lithium, nickel, and rare earth elements. As MENA economies diversify away from hydrocarbon dependence, securing access to the raw materials powering the energy transition has become a strategic imperative.
Innovation Ecosystem
Canadian universities, research institutions, and startup ecosystems produce world class innovation in healthcare, clean technology, artificial intelligence, and advanced manufacturing. For MENA investors seeking to import innovation capabilities, Canada offers a deep talent pool and commercialization pathways.
Trade Diversification Opportunity
The Carney government’s economic strategy includes a stated goal of doubling non U.S. exports and unlocking CAD $1 trillion in new investments over five years, creating receptive policy conditions for MENA capital.
The $50 Billion UAE Framework: A New Era for Canada Investment
The November 2025 signing of a $50 billion investment framework between Canada and the UAE marked a watershed moment in bilateral economic relations. Prime Minister Mark Carney’s Abu Dhabi visit represented the first Canadian PM visit to the UAE since 1983.
The framework targets several priority sectors: energy and petrochemicals, artificial intelligence infrastructure, critical minerals development, logistics and supply chain, and healthcare technology.
Accompanying the investment commitment, both nations agreed to a Foreign Investment Promotion and Protection Agreement (FIPA) and launched negotiations for a Comprehensive Economic Partnership Agreement.
Energy Sector Investments: Where the Big Money Flows
The energy and petrochemicals sector has attracted the largest MENA investments in Canada by a significant margin.
ADNOC’s $13.4 Billion Nova Chemicals Acquisition
In March 2025, Abu Dhabi National Oil Company announced the acquisition of Nova Chemicals from Mubadala. Nova Chemicals, headquartered in Calgary with 2,600 employees, is Canada’s largest petrochemical producer operating 2.6 million metric tons per year of polyethylene capacity.
The transaction will see Nova merge into Borouge Group International, creating the world’s fourth largest polyolefin producer. Calgary will remain a key corporate hub alongside Vienna, Abu Dhabi, Pittsburgh, and Singapore.
Saudi Aramco’s Entry Into Canadian LNG
Saudi Aramco established exposure to Canada’s LNG export industry through MidOcean Energy, acquiring 20% of Petronas’s Canadian entities including interests in the North Montney upstream acreage (800,000 plus gross acres, 53 Tcf resources) and a 25% stake in LNG Canada, the country’s first LNG export project in Kitimat, British Columbia.
Medtech Investments: Building the Healthcare Innovation Bridge
While energy deals dominate by dollar value, MENA investment in Canadian medical technology represents a strategically important growth area. Gulf healthcare spending is projected to reach $89 billion annually.
Qatar’s $250 Million Kardium Investment
Qatar Investment Authority led Kardium Inc.’s $250 million financing round for the Vancouver based developer of the Globe Pulsed Field System for atrial fibrillation treatment. The technology achieved 78% freedom from atrial arrhythmia at one year with zero device related safety events.
This investment reflects QIA’s broader healthcare strategy, which has included 21 biotech investments over the past two decades as healthcare becomes a priority diversification sector under Qatar National Vision 2030.
iGan Arabia: The $250 Million Canada MENA Medtech Fund
The 2022 launch of iGan Arabia established a dedicated bridge between Canadian medical technology innovation and Gulf capital. This joint venture between UAE investor Faisal Belhoul and Toronto based iGan Partners targets 10 to 12 companies bridging Canadian innovation with Gulf healthcare transformation.
The Sovereign Wealth Fund Landscape
Understanding the distinct investment strategies of major MENA sovereign wealth funds helps explain their Canadian deployment patterns.
Mubadala Investment Company, with $330 billion in assets under management, pursues majority ownership positions and take private transactions. The CI Financial acquisition exemplifies this approach, with Mubadala paying a 33% premium for full ownership of a firm managing CAD $518 billion in client assets.
Qatar Investment Authority’s $526 billion fund prefers minority growth equity investments, participating in syndicated financing rounds. The 2025 Canadian deployment included the $500 million Ivanhoe Mines investment for critical minerals exposure.
Abu Dhabi Investment Authority, managing an estimated $990 billion, operates with minimal public disclosure, likely maintaining Canadian exposure through external managers and diversified portfolios.
Saudi Arabia’s Public Investment Fund has shown limited direct interest in Canadian assets, notably divesting its Shopify stake in Q2 2025 as part of a broader portfolio rotation.
Kuwait Investment Authority participates indirectly, notably as anchor investor in Brookfield’s $100 billion AI infrastructure program.
What This Means for Canadian Companies Seeking MENA Capital
The surge in MENA investment creates significant opportunities for Canadian companies positioned in priority sectors. Several factors increase the likelihood of attracting Gulf capital.
Sector Alignment: Energy, critical minerals, healthcare technology, AI infrastructure, and logistics align with stated MENA investment priorities.
Scale and Maturity: Sovereign wealth funds typically seek established businesses with proven revenue models. Companies with CAD $50 million plus in revenue match the investment profile most Gulf funds pursue.
Global Expansion Potential: MENA investors value Canadian companies that can serve as platforms for international growth, particularly into Gulf and Asian markets.
Management Quality: Gulf sovereign wealth funds place significant emphasis on management team quality and operational track record.
Key Takeaways
The MENA investment wave in Canada represents a structural shift rather than a cyclical uptick. Individual transactions now exceed $10 billion, investments align with explicit national diversification programs, and bilateral investment agreements provide legal protections. Read
For Canadian businesses in energy, critical minerals, healthcare technology, and infrastructure, MENA sovereign wealth funds have transitioned from peripheral to potentially transformative capital sources.
The $70 billion deployed since 2020 may prove to be just the beginning. Get more updates from NextStars here.
