Saudi Arabia said to sell Canadian assets amid dispute

Saudi Arabia is selling assets in Canada amid escalating tensions, Financial Times reported on Wednesday, citing sources familiar with the matter.

The Kingdom’s central bank and state pension funds have instructed overseas asset managers to dispose of Canadian equities, bonds, and cash holdings “no matter the cost,” the newspaper reported.

The sell-off began on Tuesday, shortly after the world’s top oil exporter decided to sever trade and investment ties with Canada, citing “interference” in internal affairs.

In response to the Financial Times story, the Saudi government media office said: “Neither the government nor the central bank or the state pension fund has issued any instructions regarding the sale of Canadian assets.”

However, one financier confirmed that Canadian securities had been sold following orders from Riyadh, it was reported.

Meanwhile, Saudi energy minister Khalid Al-Falih on Thursday said the country’s petroleum supplies to countries around the world would not be impacted by the ongoing diplomatic dispute between Canada.

On Sunday, Saudi Arabia ordered the Canadian envoy to Riyadh to leave within 24 hours and recalled its ambassador to Ottawa.

The Kingdom's national airline Saudia said it would suspend all flights to and from Toronto from August 13, while the Ministry of Education announced it was working on an “urgent plan” to facilitate the transfer of Saudi-sponsored scholarship students in Canada to other countries.

In addition, Saudi Arabia has stopped all medical treatment programs in Canada and is coordinating for the transfer of all Saudi patients from Canadian hospitals to hospitals outside the country.