Prime Minister Mark Carney's much-touted $70-billion investment deal with the United Arab Emirates has failed to materialize nearly a year after it was announced, as Canadian officials told their U.A.E. counterparts that there were no projects ready to receive funds, according to a Financial Times report this week.
Carney secured the commitment during a visit to the U.A.E. last November, but when Emirati officials contacted Canada's Major Projects Office (MPO)—created to fast-track infrastructure approvals—they were informed that all proposed projects remained mired in bureaucratic red tape, the very obstacle the MPO was designed to eliminate.
U.A.E. investors told 'we're not ready'
A Canadian official, speaking on condition of anonymity, told the Financial Times: "The PM keeps talking about the $70-billion U.A.E. commitment he secured on his first visit in November. None of that has been deployed." Jean Chariest, co-chair of the U.A.E.-Canada Business Council, confirmed that the MPO "gave them the only answer they could give them at this point: we're not ready."
The revelation comes as Carney this week made an historic trip to Saudi Arabia, becoming the first Canadian prime minister to visit the kingdom in 26 years. There, he met with Crown Prince Mohammed bin Salman and announced the creation of a bilateral council to advance joint political and economic priorities, a memorandum of understanding on energy co-operation, and an agreement to promote trade and finalize a foreign investment deal by the end of next year.
Carney's fast-track promise falters
Carney has long pledged to secure infrastructure approvals within a "maximum of two years," and the first tranche of major projects was announced last September. However, the fact that almost a year has passed since the MPO was created and none of the 18 projects it is currently reviewing are far enough along to accept investor funds is a scathing indictment of his promise to build the Canadian economy in record time.
The prime minister is ultimately hoping to entice officials from Saudi Arabia's sovereign wealth fund to attend the Canada Investment Summit in Toronto this September, and contribute to the Liberals' goal of attracting $1 trillion in new investments over the next five years.
Critical minerals agreement also stalled
Carney also said in November that a $1-billion critical minerals agreement between Canada and the U.A.E. was "in the process of being finalized." But nine months later, nothing has been announced, which does not bode well for the promises he made in Saudi Arabia this week.
The Liberals long ago abandoned Stephen Harper's vision of transforming Canada into an "energy superpower," and Carney has resorted to going cap-in-hand to actual energy superpowers to secure investment. However, despite his promise to fast-track nation-building projects, Canada still lacks ready investment opportunities, undermining his economic agenda.
