On Wednesday, 18th October 2000 Sabhal Mòr Ostaig signed a Memorandum of Understanding with the University of Prince Edward Island committing both institutions to explore a range of shared developmental opportunities. This is to include staff and student cultural exchanges and collaboration in the development and delivery of joint academic programmes. Already, Iain MacPherson, a lecturer at Sabhal Mòr - who has family ties with Prince Edward Island - has delivered a Gaelic course on the island and there are plans to extend this provision further.
In announcing the signing of the memorandum during the 6th Islands of the World conference, John N. MacLeod, the head of studies at Sabhal Mòr Ostaig said - "It is vitally important that collaboration such as this between the Scottish Gaidhealtachd and Prince Edward Island and our other links with its neighbouring island of Cape Breton are actively supported at political, educational and community level. Undoubtedly, we have a shared Gaelic heritage and there is a desire to learn from our common experiences as small societies living on the periphery of larger entities." During the signing, which was concluded by video-conference link between the institutions, the historic relationship with Skye was recalled by Dr Ed MacDonald of the University of PEI, indicating that around 500 people had settled there in 1803.
A joint commemorative event, to mark the bicentenial of the arrival of the first Skye settlers, is planned for 2003.