As Canada’s recently formed Defence Investment Agency—formally established in 2025—continues to ramp up domestic military capacity and opportunities, the organization has reiterated its commitment to strengthening Canadian capabilities. This, according to CEO Doug Guzman, is also crucial if Canada is to meet NATO’s target of 3.5% core GDP spending by 2035. Citing an initial 2% figure reached in March, he said during a July 20 panel, “It’s not about the willingness or the allocation of the funds. It was the ability of the system to absorb it, by which we mean people, training, infrastructure and supply chain.”
The Canadian government’s industrial strategy, published earlier this year, is backed by CA$81.8 billion allocated over five years in the 2025 budget for defense investments. However, with the makeup of its potentially mixed future fighter fleet still undetermined, Sweden’s Saab could still be a significant part of the Canadian “build, partner, buy” framework.
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