Saudi Arabia, Canada Agree to Launch Tax Treaty Talks and Deepen Strategic Partnership

Saudi Arabia and Canada have agreed to begin negotiations on a double taxation avoidance agreement and welcomed progress toward concluding a bilateral investment promotion and protection agreement by early 2027, according to a joint statement issued following Canadian Prime Minister Mark Carney's official visit to the Kingdom.

The statement, released after talks between Saudi Crown Prince and Prime Minister Mohammed bin Salman and Prime Minister Carney during the July 8–10 visit, underscored both countries' commitment to building a long-term strategic partnership.

The two sides also agreed to strengthen cooperation between their financial institutions to support financing for major strategic projects. Saudi Arabia welcomed the growing interest of Canadian investors in opportunities across the Kingdom, while Canada invited Saudi investors to participate in its inaugural Investment Summit, scheduled to be held in Toronto in September 2026.

To enhance bilateral cooperation, the two leaders announced the establishment of the Saudi-Canadian Coordination Council, co-chaired by the foreign ministers of both countries. The council will oversee collaboration in politics, defence, security, trade, investment, culture, education, science, and consular affairs.

They also unveiled a Joint Action Document that will serve as the framework for expanding cooperation across strategic sectors under the new council.

The joint statement noted that bilateral trade has exceeded US$20 billion since 2020. Both countries pledged to encourage greater mutual investment, expand non-oil trade, and support small and medium-sized enterprises.

The leaders welcomed the outcomes of the Saudi-Canadian Investment Forum, where several commercial and investment agreements were announced in sectors including mining, engineering, infrastructure, advanced industries, education, training, financial services, and information and communications technology.

They also welcomed the signing of memoranda of understanding on energy cooperation, artificial intelligence, and skills development. The two sides highlighted opportunities for collaboration in liquefied natural gas (LNG), renewable energy, hydrogen, carbon management, cybersecurity, innovation, and supply chain resilience.

The statement emphasized plans to expand cooperation in the mining and critical minerals sector based on a memorandum of understanding signed in January 2026. It noted that Canadian companies currently hold the largest share of mineral exploration licences issued by Saudi Arabia's Ministry of Industry and Mineral Resources.

Saudi Arabia and Canada also pledged to deepen cooperation in defence, cybersecurity, counterterrorism, and combating transnational organized crime. They further agreed to strengthen partnerships in healthcare, biotechnology, digital health, pharmaceuticals, medical technology, scientific research, and workforce development.

The two leaders highlighted the expansion of a bilateral air transport agreement signed in November 2025, which allows up to 14 passenger flights per week for each country while providing unlimited cargo services. They also agreed to further enhance air connectivity between the two nations.

On regional and international issues, Saudi Arabia and Canada condemned Iran's reported attack on commercial vessels in the Strait of Hormuz on July 7, describing it as a serious violation of international law, freedom of navigation, and UN Security Council Resolution 2817.

Both countries stressed the need to restore safe and uninterrupted maritime navigation through the Strait of Hormuz in accordance with international law and praised mediation efforts by Pakistan and Qatar aimed at preserving regional stability.

Regarding the Israeli-Palestinian conflict, the two sides called for the rapid, safe, and unhindered delivery of humanitarian assistance to civilians in Gaza, renewed efforts toward a lasting peace, and reaffirmed their support for a two-state solution. Saudi Arabia also welcomed Canada's decision to recognize the State of Palestine.

The leaders reiterated their support for a political solution in Yemen, backed the Presidential Leadership Council, and emphasized the importance of maintaining security in the Red Sea. They also called for stronger international efforts to end the conflict in Sudan while safeguarding the country's sovereignty, unity, and state institutions.

Canada reaffirmed its support for Saudi Arabia's presidency of the G20 Summit in 2030. Prime Minister Carney also congratulated the Kingdom on securing the right to host Expo 2030 in Riyadh, confirmed Canada's participation in the global event, and expressed interest in expanding bilateral cooperation ahead of Saudi Arabia's hosting of the 2034 FIFA World Cup.