An air link between oil capitals Calgary and Abu Dhabi underscores Canada’s Gulf pivot

Skip to Content News Archives Economy Defence Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Defence Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Defence Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeEnergyOil & GasAn air link between oil capitals Calgary and Abu Dhabi underscores Canada’s Gulf pivotEtihad Airways has begun flying four days a week on a route billed as establishing closer ties between two energy superpowersAuthor of the article:Abu Dhabi-based Etihad Ariways is flying four days a week to Calgary as the oil capitals look to increase ties and business. Photo by Handout /EtihadCanada’s shifting geopolitical alliances are neatly encapsulated by a 14-hour flight.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountA direct link between Calgary and Abu Dhabi opened this week, connecting western Canada with the Persian Gulf nation for the first time. Etihad Airways has begun flying four days a week on a route billed as establishing closer ties between two energy superpowers: the United Arab Emirates capital was built out of the desert on the back of oil production, and Calgary is the financial capital of Canada’s oil patch.This advertisement has not loaded yet, but your article continues below.It’s part of an intensive push in the last year from Prime Minister Mark Carney to increase trade ties and investment between the two countries in a bid to diversify trade away from the United States. Tensions between the neighbours have driven Carney to search for new trading partners and reignite ties with old ones, including India and Turkey, and to explore a special relationship with the European Union.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe UAE is Canada’s top export market in the Middle East and Carney’s government wants to double annual trade to about $7 billion. Carney himself visited the country late last year, the first visit from a Canadian prime minister in more than 40 years, and came back touting a pledge for the UAE to invest $70 billion in Canada. Alberta’s government, too, has moved to grow its ties with the UAE, opening a trade office in the capital last year.The UAE is also seeking to diversify its economy as the U.S.-Israeli war with Iran upends regional security. Shipping through the Strait of Hormuz has been restricted for much of the year, hindering its ability to get products to Asian and European markets. The country left the oil producer group OPEC earlier this year, in part so it could more quickly grow its capacity.This advertisement has not loaded yet, but your article continues below. Prime Minister Mark Carney chats with Crown Prince of Abu Dhabi Sheikh Khaled bin Mohamed bin Zayed Al Nahyan during a signing ceremony on Parliament Hill in Ottawa, Oct, 27, 2026. The crown prince was in Ottawa to formalize a new trade deal with Canada. Photo by Blair Gable /PostmediaSigns of the cozy relationship are abundant. Just this week, Abu Dhabi’s crown prince was in Ottawa as he and Carney formalized a new trade deal. Investment has also picked up: Dubai’s DP World Ltd. is in talks to expand a port in northern Canada. The state-owned oil company’s investment arm, XRG, is an owner of Nova Chemicals in Alberta and is said to be exploring acquiring a stake in the LNG Canada export project in B.C. And firms from the two countries have agreed to work together on sharing satellite infrastructure and improve connectivity for mobile devices.Using Boeing 787 Dreamliner planes that can take roughly 300 passengers, Etihad said in a statement that the flight opens up more business and tourism travel to destinations across western Canada and, in the opposite direction, to India, Africa and the Middle East.Mini Varghese, a passenger on the first flight to Abu Dhabi, was visiting her father in the hospital in southern India. The flight made it possible to see him sooner and is something her family plans to use more often, saving additional layovers in Vancouver or Toronto. “This is very easy for us now,” she said.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.A key to making the route happen was a different approach in the Carney government’s strategy around awarding new international flights, said Chris Dinsdale, chief executive of Calgary’s airport. While in the past new routes would be open to any airport in Canada, increasing competition with the major hubs in Toronto and Montreal, Etihad’s destination was reserved for western Canada.“It was the first time I’ve seen the government react to say, ‘You know what? The west also is important and it needs a special spot there.’ I think in a lot of regards it was a fresh approach that I hadn’t experienced yet,” Dinsdale said.The timing of a direct link between the two oil giants could spur some of the investment Alberta is looking for as it plans to double oil output in the next decade. Industry analysts believe north of $100 billion will be needed to grow production, build pipelines and a carbon capture project in the province.“Some routes immediately feel significant, not simply because they connect two destinations, but because of the opportunities they create. Calgary is one of those routes,” Etihad chief executive Antonoaldo Neves said in a statement.This advertisement has not loaded yet, but your article continues below.Key to Alberta’s hopes for an energy boom will be foreign investment from likely crude buyers such as Japan, South Korea and India, but also increased cooperation with major oil-producing Persian Gulf nations.Joseph Schow, the provincial minister of trade, was on the first flight to Abu Dhabi ahead of attending the city’s marquee energy conference next week. “There is a lot of investment potential coming from the UAE,” he said, adding that the flight strengthened ties with the country and showed “investor confidence” in Alberta.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.