Canadian Prime Minister Mark Carney sealed more than C$1 billion ($710 million) in commercial pacts with Saudi Arabia during a landmark visit — the first by a Canadian head of government in 26 years — to deepen cooperation across mining, energy and advanced technology. Yet the diplomatic breakthrough risks being undercut by a glacial domestic permitting system that puts billions in critical minerals investment at stake.
Carney met Crown Prince Mohammed bin Salman in Jeddah, where the two sides signed 13 agreements and memorandums of understanding. The deals mark the sharpest thaw in bilateral relations since the nations restored full diplomatic ties in 2023 after a five-year rift.
The partnership dovetails with Saudi Arabia’s Vision 2030 agenda to diversify its oil-reliant economy and build mining into its third economic pillar, unlocking an estimated $2.5 trillion in untapped mineral reserves. Canadian firms will bring expertise in exploration, critical minerals processing, carbon capture, hydrogen and liquefied natural gas, while supporting Saudi infrastructure build-out and vocational mining training.
Carney held separate talks with Saudi Aramco Chief Executive Officer Amin Nasser to formalize joint work on LNG, renewables, hydrogen and carbon storage.
For Ottawa, the outreach is a core plank of its push to reduce trade dependence on the US, where persistent tariff threats hang over key Canadian exports. Saudi Arabia’s $1.8 trillion economy and more than $1 trillion sovereign wealth fund offer both a fast-growing new market and a deep pool of long-term capital.
Officials aim to conclude negotiations on a foreign investment protection agreement by early 2027, and have launched parallel talks on a double-taxation treaty to remove cross-border investment frictions. Carney also announced plans to lead a delegation of Canadian pension funds to Saudi Arabia, and to open a resident defense attaché office in Riyadh.
Even with the diplomatic momentum, Canada’s ability to fully capitalize on the partnership is constrained by long-running regulatory gridlock in its mining sector.
A PwC Canada Mine 2026 report, citing S&P Global Market Intelligence data, shows it takes an average 20 years to permit and construct a mine in Canada — six years longer than in Australia — eroding the country’s appeal to global capital.
The gap stems from overlapping federal and provincial environmental reviews, lengthy Indigenous consultation processes, infrastructure constraints and vague decision timelines. The fragmented regime creates deep uncertainty over project costs and schedules, deterring long-term institutional investment.
High domestic operating costs and limited downstream processing capacity further weaken Canada’s hand, as global competition for critical minerals shifts from pure geological endowment to regulatory speed and policy predictability.
Ottawa has rolled out a national Critical Minerals Strategy, dedicated investment funds and fast-track status for five major projects worth more than C$11 billion combined. But industry leaders say the steps fail to fix core inefficiencies in the permitting system.
Monica Banting, PwC Canada’s national mining leader, has called for targeted reforms to boost predictability without rolling back environmental and social standards. Proposals include tighter federal-provincial coordination, fixed decision deadlines, digital permitting tools and deeper long-term economic partnerships with Indigenous communities.
With demand for critical minerals surging for electric vehicles, renewable energy and defense technology, permitting speed has emerged as a strategic competitive advantage. Analysts warn Canada has a limited window to act — without faster approvals, it risks squandering the Saudi-backed investment opportunity and ceding ground in the global supply chain.
