This is Queen Street Analytics' weekly digest of regulatory developments, legislative discussions and other government-related news concerning Canada's national defence, cybersecurity, weapons systems, military commitments, and Canadian Armed Forces (CAF), Royal Canadian Navy (RCN) and Royal Canadian Air Force (RCAF) Once a week, we break down the most important updates in this space in under five minutes.

Want to track GR news in industries related to Defence? Don't miss this week's updates in ICT & Cybersecurity and Foreign Affairs.

Dates: 2026-01-19 to 2026-01-25

📋 In This Week's Newsletter

• 🏛️ This Week's Parliamentary Calendar
• 🇨🇦 Federal Government News
• 🗺️ Provincial Government News
• 📚 What We're Reading This Week

This Week's Parliamentary Calendar

• National Defence Committee to Discuss Future Planning and NORAD Modernization: Scheduled for January 26, the House of Commons National Defence Committee will address Bill C-11 and future travel, followed by a session with senior Department of National Defence officials on North American Aerospace Defense Command (NORAD) modernization from 11:00 a.m. to 1:00 p.m.
• Public Accounts Committee to Review Government Cyber Security Networks Audit: On January 26, the Public Accounts Committee will convene from 11:00 a.m. to 1:00 p.m. to examine the 2025 Fall Auditor General’s report on cyber security of network systems, joined by representatives from the Auditor General, Communications Security Establishment, Canadian Centre for Cyber Security, Shared Services Canada, and Treasury Board Secretariat.
• Public Safety and National Security Committee Hearing on Bill C-8 (Cyber Security): On January 27, the Public Safety and National Security Committee will review Bill C-8 concerning cyber security and telecommunications from 3:30 p.m. to 5:30 p.m., featuring Minister Mélanie Joly and senior Industry Canada officials.
• Foreign Affairs and International Development Committee to Explore Canada's Arctic Strategy: On January 29, the committee will study Canada’s Arctic Strategy from 3:30 p.m. to 5:30 p.m. with testimony from R.J. Simpson, Premier of Northwest Territories, and John Main, Premier of Nunavut.

Federal Government News

Construction Commences on Royal Canadian Navy Land-Based Test Facility in Nova Scotia

The Department of National Defence has begun construction on its Land-Based Test Facility (LBTF) at Hartlen Point in Eastern Passage, Nova Scotia to support the Royal Canadian Navy's new River-class destroyers. Managed by PCL Construction, the project is expected to support about 200 jobs through to its completion in early 2028. The LBTF is designed in conjunction with the River-class destroyer specifications to facilitate combat systems integration, with prior site preparations including roadway access, grading, and foundational work dating back to 2023. This phased approach secures continuity between design and build stages, aiming to meet NATO defence spending targets and offer sustained support for vessel lifecycle requirements. The facility’s development also integrates local economic growth and advances Canada’s maritime security strategy for national and allied naval operations.

Sources: www.canada.ca

Minister Sidhu Advances Defence and Commercial Ties in Saudi Arabia

Minister of International Trade Maninder Sidhu led a Canadian delegation to Saudi Arabia on January 12, facilitating business agreements totaling roughly $600 million, with Niagara College accounting for over $580 million through partnerships with Saudi post-secondary institutions. Defence and aerospace expertise featured prominently, as the delegation visited the CAE UAV Training Centre and attended major infrastructure project tours. The trip included strategic discussions with several senior Saudi officials and resulted in the reactivation of the Joint Economic Commission to formalize economic cooperation. Notable deals included BlackBerry and OpenText agreements in the ICT and defence-related technology sectors, fueling additional opportunities in advanced manufacturing, AI, and defence training in the Gulf market.

Sources: www.canada.ca

Further Progress in Canada-UAE Defence and Aerospace Collaboration

Minister Sidhu met in Abu Dhabi with Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade. The meeting underscored recent institutional milestones such as the Canada-UAE Foreign Investment Promotion and Protection Agreement and the expanded Canada-UAE Air Transport Agreement, laying groundwork for joint business expansion in aerospace, advanced manufacturing, clean tech, and AI. A UAE business delegation is scheduled to visit Canada later in 2026. The ministers discussed continued negotiations toward a comprehensive economic partnership agreement, with these initiatives supporting increased defence-sector export opportunities in biometric surveillance, UAVs, and military infrastructure engineering.

Sources: www.canada.ca

Minister Sidhu Concludes Gulf Visit with Signings in AI, Advanced Manufacturing, and Defence Training

On January 13, Minister Sidhu completed a Gulf region trade mission along with senior Canadian business leaders, announcing several corporate moves in defence and aerospace. Alexa Translations signed a contract to provide AI-powered legal translation, while National Bank of Canada and Novisto confirmed new Dubai offices. Superheat, a manufacturing firm, established a Middle East entity, increasing Canadian industrial footprint in the UAE. Minister Sidhu held meetings with top Emirati officials and engaged sectoral experts, including at the Canada-UAE Business Council, furthering the strategic positioning of Canadian defence, aerospace, and training companies for participation in market access discussions under a soon-to-be-negotiated CEPA.

Sources: www.canada.ca

Weekly Aircraft Movements Data Released for Early January

Statistics Canada has published weekly aircraft itinerant movement data for January 3–9, 2026. This dataset may provide insights on regional air operations, supply logistics, and the tempo of military aircraft movements during the reference period.

Sources: www.statcan.gc.ca

New Defence Technology Company Opens Factory in Kanata

A new defence technology firm inaugurated its manufacturing facility in Kanata. The company intends to serve both civilian and military aerospace markets, supporting growth in local advanced manufacturing and defence supply chain capacity.

Sources: www.ctvnews.ca

Submarine Procurement Needs Identified by Navy Commander

Canada’s navy commander characterized submarine procurement as urgent, citing persistent and well-known operational shortcomings. The assessment, issued publicly, draws attention to procurement timelines and future requirements for undersea platforms critical to national defence.

Sources: www.ctvnews.ca

Provincial Government News

Ontario Advances Bid to Host Defence, Security and Resilience Bank in Toronto

Ontario launched a comprehensive bid for Toronto to host the newly created Defence, Security and Resilience Bank, outlining sector expertise and local infrastructure required for the multilateral institution.

Sources: news.ontario.ca

Quebec Releases Strategy to Enhance Critical and Strategic Minerals Sector

Quebec’s new strategy aims to accelerate projects, develop the full value chain, and enhance infrastructure for critical minerals—resources vital for defence and aerospace manufacturing.

Sources: www.quebec.ca

Quebec Unveils 2025-2031 Critical and Strategic Minerals Development Plan

The province allocated $88.1 million for strategic minerals development, targeting improved business conditions, project acceleration, and robust regional economic impact for defence supply industries.

Sources: www.quebec.ca

Alberta MLAs Build Cross-Border Relations in Alaska for PNWER

Alberta MLAs Rowswell and Wright met with Alaskan leaders in Juneau as part of the PNWER Capital Visits, focusing on trade, energy, and aerospace corridor development in the Pacific Northwest.

Sources: www.alberta.ca

What We're Reading This Week

• Defending Canada’s Arctic will need dual-use technologies. Our manufacturers have a head start: Review of Canada's Arctic defence technology capabilities.
• Supply Shock: Why Defense Capital Is Rotating From Exploration to Infrastructure: Analysis of defence industry capital flows.
• Trump's Greenland saga highlights need for more defence spending in N.L., Wakeham says: Newfoundland and Labrador perspective on Arctic defence spending.
• IperionX Receives Prototype Purchase Order for U.S. Army Heavy Ground Combat Systems: Manufacturer secures contract for advanced military vehicles.
• Indigenous-owned Flowing River Capital has big plans in the growing defence sector: Indigenous participation in the defence industry.

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