Canada has surpassed the United States to become the "most attractive market for infrastructure investment," according to a survey of leading investors in the sector. The poll, conducted by the Global Infrastructure Investor Association (GIIA), places Canada at the top of its rankings for the first time, thanks to a series of recent announcements by the Canadian government.
Canada's Rise to the Top
Canada surpassed Germany, which now sits in second place, as well as the United States. This marks a significant shift in global infrastructure investment sentiment. The GIIA's survey highlights that Canada's recent policy commitments have generated substantial interest among international investors.
Prime Minister Mark Carney's government has made clear commitments to strengthening and expanding Canada's core infrastructure, according to a press release. These include the 'Nation Building' program and the announcement of a new sovereign wealth fund, which will partly be used to co-fund infrastructure projects alongside private-sector partners. The government initially committed $25 billion over three years for the fund.
Investor Confidence
"Canada is making all the right noises when it comes to its intentions to attract private capital into building, maintaining, and improving the nation's infrastructure — with ambitious goals for how and where it will raise this capital," said Jon Phillips, the association's chief executive. Phillips noted that his group works with Canadian infrastructure investors all over the world, who have been some of the most active in the sector for decades. Just two years ago, Canada made up only three per cent of capital deployed by its members, but "it appears that is certainly about to change," he added.
The GIIA's members manage nearly $3 trillion in infrastructure assets combined. They are surveyed on a bi-annual basis to gauge sector attractiveness, challenges, and deal flow across the world's biggest infrastructure markets. One large-scale investor member noted that Canada currently appears to be "having a moment" within the world of infrastructure and major national projects.
Future Prospects
Canada is also looking to attract foreign investors, with a stated aim of raising $1 trillion in new capital from external sources. The first-ever Canada Investment Summit is scheduled to kick off later this fall. Much of the capital would be generated in the prospect that Canada will privatize some of its major airports. Additionally, the country's intention to become a nuclear-led energy superpower is an attractive notion. By working with experienced infrastructure investors, Canada can manage costs, speed up deployment, and reinforce its global leadership in clean energy.
"Our latest survey of members has clearly shown that recent announcements are creating global interest," said Phillips. "If the government can continue to send clear policy signals like reforming airport governance and nuclear innovation, they can convert this investor interest into real deals and capital flow."
