Montreal venture capital firm Inovia Capital plants its flag in Abu Dhabi just as Prime Minister Mark Carney signs a historic investment pact with the UAE. The timing could not be better for Canadian tech companies eyeing Middle Eastern money.
Inovia’s new office in Abu Dhabi Global Market puts the firm at the center of one of the world’s fastest-growing AI hubs. This strengthens Canada and the UAE business ties through a fresh investment protection agreement signed this week by Carney during his visit to the Gulf nation.
Inovia Positions for Gulf Region Gold Rush
Claire Glossop Irani, Inovia’s head of strategic partnerships, is relocating to Abu Dhabi to lead the firm’s Middle East operations. She will focus on creating commercial and financial partnerships for portfolio companies across the UAE and Saudi Arabia.
“It is an opportune moment to accelerate strengthened ties between the Canadian and Middle East tech ecosystems,” Glossop Irani said. “Being based in Abu Dhabi will allow us to better support our portfolio by deepening our relationships with entities committed to building the next generation of global technology companies.”
The office is located at Abu Dhabi Global Market, the city’s international financial center that operates under English common law. This business-friendly zone has become a magnet for tech companies seeking access to Middle Eastern capital and markets.
Inovia CEO Chris Arsenault told The Logic that Gulf region investors are eager to back both the firm and its portfolio companies. The timing aligns with Inovia’s plans to raise two new funds next year, positioning the firm to capture growing Middle Eastern interest in Canadian tech.
Canadian Tech Companies Already Winning Gulf Contracts
Inovia’s Gulf strategy is already paying dividends. The firm led a delegation to the UAE and Saudi Arabia earlier this fall, resulting in immediate business wins for Canadian companies.
Arsenault revealed that the trip secured a $25 million investment for one portfolio company, signed a commercial agreement for another, and put nine more deals into negotiation. Several Inovia portfolio firms, including AI giant Cohere, travel app Hopper, and cybersecurity company Flare, already operate in the Gulf region.
The delegation included major Canadian tech players such as Cohere, quantum computing firm Photonic, and cloud services provider AppDirect. AI research institutes Amii and Mila also participated, highlighting Canada’s artificial intelligence expertise that Gulf nations are eager to access.
Middle East Emerges as AI Investment Powerhouse
Abu Dhabi is transforming into the Middle East’s AI capital with government backing and massive infrastructure investments. The emirate’s AI sector expanded 61% in just one year, making it the fastest-growing AI center in the Middle East and North Africa region.
The UAE recently secured approval from the U.S. to access advanced American chip technology, despite concerns about the country’s cooperation with China. This access enables UAE companies to have a competitive edge in building AI infrastructure and data centers.
Hub71, Abu Dhabi’s state-backed startup hub, has attracted 53 AI-focused startups, with 13 joining in the first half of 2025 alone. The ecosystem is drawing international talent and creating opportunities for partnerships with Canadian firms.
Canada-UAE Investment Ties Reach New Heights
Prime Minister Carney’s visit to Abu Dhabi this week resulted in the signing of an investment protection agreement that provides frameworks for investment and dispute resolution between the two countries. The deal also launched talks for a comprehensive economic partnership agreement.
The investment pact builds on a memorandum of understanding signed in October between Canada and the UAE, focusing on collaboration on AI and digital infrastructure. AI Minister Evan Solomon signed that earlier agreement during his visit to the Gulf, creating pathways for Canadian companies to participate in the region’s technology transformation.
Jean Charest, former Quebec premier and co-chair of the Canada-UAE Business Council, described the investment agreement as “a prelude to a trade agreement.” He emphasized that large UAE investors already hold stakes in major Canadian infrastructure, positioning both countries as global hubs.
Inovia’s $2.5 Billion War Chest Ready for Expansion
Inovia manages over $2.5 billion USD across offices in Montreal, Toronto, Waterloo, Calgary, the Bay Area, and London. The firm secured $300 million USD for its third growth equity fund in June 2024, with plans to raise additional capital next year.
The venture capital firm typically backs business-to-business and business-to-consumer software companies and marketplaces. Investment themes include the future of work, hospitality technology, commerce enablement, security, and digital health solutions.
In 2024, Inovia deployed over $194 million across 35 new companies and 18 existing portfolio firms. The firm’s portfolio has produced 10 unicorns, 4 IPOs, and 59 acquisitions, including major successes like Wealthsimple and Clearco.
Strategic Timing Amid Global Tech Shifts
The Abu Dhabi office opening comes as Middle Eastern sovereign wealth funds target international technology investments. UAE funds, including Mubadala, MGX, ADQ, and ADIC, are actively seeking partnerships with North American firms.
Carney met with these major investment entities during his visit to Abu Dhabi, showing government support for deeper financial cooperation. The UAE is positioning itself as the economic center for the entire Gulf region, creating opportunities for Canadian firms to access broader Middle Eastern markets.
Janice Stein from the University of Toronto’s Munk School of Global Affairs described Carney’s visit as “prescient,” noting the UAE’s leadership in AI adoption and enthusiasm for working with the former central banker and UN envoy.
