The pace of economic partnership between Saudi Arabia and Canada is accelerating towards a new and qualitative stage; after a full year of intense diplomatic and investment activity between the two countries, Saudi Crown Prince and Prime Minister Mohammed bin Salman and Canadian Prime Minister Mark Carney inaugurated a new strategic era focused on qualitative and future sectors during an official meeting held at Al-Salam Palace in Jeddah. This political momentum was immediately crowned by the signing of 15 agreements and memoranda of understanding at the Saudi-Canadian Investment Forum, setting a broader path for cooperation that reflects the mutual and deep desire of both sides to continue.

In this integrated landscape, attention today is turning to the mining and critical minerals sector as the first beneficiary of this partnership, driven by the two countries possessing unique complementary advantages combining abundant resources and Canada's long-standing engineering expertise with the Kingdom's massive industrial and investment capabilities to unlock its untapped mineral wealth estimated at $2.5 trillion. This mining sector is expected to lead the early returns from the recent agreements, before its integrated effects extend to the energy, advanced technology, and data center sectors, ensuring the strengthening of value chains and the creation of investment and industrial opportunities with a global dimension.

Periodic meetings

To ensure the conversion of these 'understandings' from 'framework memoranda' into 'existing projects' on the ground, the head of the Saudi-Canadian Business Council, Mohammed Nasser Al Dalim, revealed that there are new agreements that will be announced in due time, and that there will be close follow-up on what has been signed between the two sides.

He told Asharq Al-Awsat that there is broad movement between the two sides and a plan to exchange trade delegations between Saudi Arabia and Canada, and periodic meetings between companies during the current year, and that these vital meetings will continue in the next year 2027.

This aligns with what Canadian Minister of Energy and Natural Resources Tim Hodgson had announced, who affirmed that deepening cooperation with Saudi Arabia - Canada's largest trading partner in the region - represents a fundamental pillar within Ottawa's ambitious strategy to stimulate $500 billion in private investments and double its non-US exports over the next decade.

Earlier this year, the global Canadian engineering company Hatch signed a strategic agreement with Saudi Ma'aden worth up to $700 million to develop its project portfolio in gold, phosphate, and aluminum. A qualitative partnership was also announced between Canadian company Northern Graphite and Saudi Al-Obeikan Investment Group to establish an advanced plant for processing battery anode materials inside the Kingdom, a key step towards securing and diversifying clean energy supply chains for the future.

Regarding the fastest expected returns following this rapprochement, Al Dalim predicted that the mining and critical minerals sector will lead the scene as the backbone of this partnership, which proceeds according to a strategic equation he formulated as: 'Canada supplies, Saudi Arabia transforms, and the world benefits.' He added that this vital axis will be followed successively by the energy, advanced technology, and data center sectors, stressing that this entire system represents integrated, not competing, sectors that serve common future goals.

Technology and Data Centers

Al Dalim affirmed that the priorities of the 'Council' after the Jeddah forum are 'clear, and consist of transforming the 15 agreements from 'memoranda' into 'existing projects,' and an executive follow-up mechanism has been adopted for each agreement, including a timeline and measurement indicators reviewed periodically with the signatories, and a follow-up report will be issued in the coming period.'

The head of the 'Council' touched in his speech on the significant growth in the trade balance, saying: 'We are confident that it will exceed previous levels in the coming years, driven by the political and economic momentum generated by the recent forum and the official visit of the Canadian Prime Minister.'

Mohammed Al Dalim, head of the Saudi-Canadian Business Council (Asharq Al-Awsat)

Sectoral Working Groups

Regarding the role of the 'Council' in the next phase, he clarified that the role of the 'Council' on the organizational side is to serve as the link between investors and government entities in both countries, and that the sectoral working groups in the 'Council' play an effective role, forming a permanent platform to follow up on partnerships and overcome any challenges.

The Saudi-Canadian Investment Forum, attended by an elite group of businessmen and investors from both sides led by officials of the two countries, has whetted appetites to enhance this path and seek promising opportunities in the Saudi economy, which has reached about $1.3 trillion, with non-oil activities exceeding 50% of GDP.

It appears that both sides explored promising investment opportunities during the 'Forum,' and investors identified the targeted sectors; some of which were announced, and others are being negotiated in all aspects even if not disclosed; but they will not go beyond the scope of 'financial services, mining, advanced industries, artificial intelligence, data centers, education, and innovation.'