Canada’s most valuable company is laying the groundwork for a Middle East expansion.
Driving the news: RBC is applying for a banking licence in the Middle East and is preparing to open offices in cities like Abu Dhabi and Riyadh, according to the Globe and Mail. The lender says its European offices have been dealing with a growing number of client requests in the Gulf region.
Earlier this month, National Bank opened up its own offices in Dubai — its first-ever United Arab Emirates location. Other Canadian companies, including OpenText and Inovia Capital, are following suit with plans for offices in Saudi Arabia and Abu Dhabi.
Why it matters: With economic stability top of mind in Canada, the idea of deepening ties with the Middle East — which would have felt like a moral sin a few years ago — has become far more palatable to Canadians. That’s given Ottawa and Canadian businesses free rein to deal with one of the largest sources of foreign capital in the world.
During Ottawa’s trade trip to the Middle East in November, the UAE pledged to invest $70 billion in Canada’s critical mineral, energy, and AI sectors.
Saudi Arabia has pledged similar investments and opened the door for banks, AI firms, and, very enthusiastically, Cirque du Soleil, to expand in the country.
What’s next: Ottawa is slated to kick off formal trade negotiations with the UAE next month, with liquefied natural gas and port infrastructure investments at the top of its wish list.—LA