Prime Minister Mark Carney announced the creation of Canada's first sovereign wealth fund, the Canada Strong Fund, aimed at financing major development projects across the country. The fund will receive an initial injection of C$25bn ($18.4bn; £13.5bn) and will invest in energy, infrastructure, mining, agriculture, and technology.
Canadians with disposable income will have the option to invest directly in the fund, though experts caution that it may yield "limited returns." The initiative is part of a broader strategy to strengthen Canada's economy in response to escalating US tariff threats.
Speaking in Ottawa on Monday, Carney emphasized that Canada is at a pivotal moment due to shifting relations with the United States. "The US has changed, that's their right," he said. "And we are responding, that's our imperative."
The fund will collaborate with the private sector on what the government calls "nation-building projects," such as port upgrades and natural resource development. Carney noted that many resource-rich countries, like Norway, have long had sovereign wealth funds, but Canada has not—until now.
However, the Montreal Economic Institute warned that the fund "risks costing taxpayers dearly while generating limited returns." Opposition leader Pierre Poilievre dubbed it a "sovereign debt fund," arguing that Canada is in deficit and cannot afford such a venture. "Norway, Singapore, and Saudi Arabia run big budget surpluses which they accumulate and put into their sovereign wealth funds," he said. "Carney has no surplus, and therefore no wealth to put in such a fund."
Carney countered that Canada's financial position has improved, with a lower-than-expected deficit, allowing for the fund's creation. He added that foreign investment in Canada has increased and "is outpacing all other major economies right now."
The government plans to hold consultations on the fund's details in the coming months.
Other countries' sovereign wealth funds offer a contrast. Norway's fund, launched in 1990, invests surplus oil and gas revenues exclusively abroad and has grown to $2.1tn in assets. Unlike Norway, Canada is in debt, meaning its fund will be financed through borrowing rather than surplus revenues, according to University of Toronto economics professor Joseph Steinberg. He noted that sovereign wealth funds typically invest in diverse portfolios outside their home country, but Canada's appears focused on domestic projects. Additionally, Canada's fund will allow direct citizen investments, a feature not found in other nations.
Other countries with sovereign wealth funds exceeding $1tn include China, the United Arab Emirates, and Kuwait. The US is also exploring a similar fund, following an executive order by President Donald Trump.