Canadian Prime Minister Mark Carney announced on Monday that his government is establishing a government-owned investment fund, the first of its kind for the country. The fund will invest in major Canadian industrial projects in sectors such as energy, infrastructure, mining, agriculture, and technology, starting with 25 billion Canadian dollars (US$18 billion).

Carney stated that the federal government will contribute funds alongside private investors. The capital is intended to finance major projects as Canada seeks to diversify away from the United States. US President Donald Trump has allegedly threatened Canada's economy and sovereignty with tariffs and claims that Canada could become "the 51st state" of the US.

Carney, a former central banker for England and Canada and former chairman of Bloomberg's board of directors, said: "We take a lesson from other jurisdictions that had the foresight many decades ago to start sovereign wealth funds. In some cases, they began with a domestic focus then outgrew the scale of the domestic focus."

Sovereign wealth funds typically invest in assets like stocks, bonds, and real estate, and are usually funded by budgetary surpluses—which Canada currently lacks. The announcement came a day before Carney's government is set to release its spring economic update. Globally, there are over 90 sovereign wealth funds managing more than $8 trillion in assets, according to the International Forum of Sovereign Wealth Funds.

Source: www.aljazeera.com