Two-way trade between the two countries is tiny - around 0.4 percent of Canada's total trade in 2017.
The decision by Saudi Arabia to halt new investments and unload assets in Canada is likely to have limited impact.
Saudi assets in Canada are confined mainly to stakes in upscale hotel operators, some small stock holdings in companies like Canadian National Railway Co, and grain facilities.
Most investments have been made by Saudi billionaire Prince Alwaleed Bin Talal through his Kingdom Holding Co, with investments in hotels, real estate and equities.
The company’s international hotel unit joined Bill Gates’s Cascade Investment and Canadian Isadore Sharp in a 2007 buyout of management company Four Seasons Hotels, taking a 47.5 percent stake.
“The matter does not affect the day-to-day operations of Four Seasons,” spokeswoman Sarah Tuite said in an email. “It is business as usual as we continue to welcome guests to our hotels and resorts worldwide.”
Alwaleed’s influence in the kingdom has diminished after his arrest last year in an anti-corruption sweep by Crown Prince Mohammed bin Salman, who is seen to be sending a message to critics of his leadership with this latest reaction against Canada.
G3 Global Grain Group, a joint venture between state-owned Saudi Agriculture & Livestock Investment Co. and US agri-food company Bunge Ltd., bought a 50.1 percent stake in the Canadian Wheat Board for C$250 million ($192 million) in 2015. SALIC boosted its stake to 75 percent a year later. The partnership also holds an interest in a grain export terminal being built near Vancouver.
On Tuesday, officials of the Winnipeg, Manitoba-based G3 said the company continues to buy and sell grain as usual. Officials didn’t immediately return requests for comment on Wednesday.
Last year, Toronto-based technology start-up QD Solar Inc. received funding from a group that included Saudi’s King Abdullah University of Science and Technology and Netherlands-based venture capital firm DSM Venturing.
Saudi lender National Commercial Bank has an asset manager that held investments in 41 Canadian companies including Suncor Energy, Canadian Natural Resources. and Canadian Pacific Railway. in its AlAhli North America Index Fund, according to May 2017 filings. CN Rail, at $473,500, was the largest Canadian investment of the fund’s $148.2 million portfolio.
Two-way trade between the two countries is tiny - around 0.4 percent of Canada’s total trade in 2017.
Canada exported C$1.37 billion (US $1bn) worth of goods to Saudi Arabia last year, mostly tanks and other armoured fighting vehicles and their parts, according to Statistics Canada.
The country imported C$2.63 billion (US $2bn) in goods from Saudi Arabia over that period, mostly crude imported to the Irving Oil Ltd. refinery in Saint John, New Brunswick.
The tanks and armoured vehicles are manufactured by General Dynamics Land Systems Canada, based in London, Ontario, a unit of US defence giant General Dynamics Corp., under a C$15 billion (US11.5bn) contract with Saudi Arabia signed by the Canadian government in 2014.
Export Development Canada, the country’s trade financing agency, has exposure of about C$2 billion (US $1.5bn) to Saudi Arabia, and about 250 customers operating in the kingdom, Jessica Draker, an EDC spokeswoman, said in an email.
“Canada stands up firmly and respectfully for human rights,” Canadian Prime Minister Justin Trudeau told reporters Wednesday in Montreal, sidestepping questions on the impact of the Saudi moves.
He also declined to say whether Canada would apologise for its statements about the women’s activists.
Amy Mills, a spokeswoman for Freeland, said in an email the global affairs department “continues to seek clarity from the Government of Saudi Arabia on various issues.”
Saudi’s move had a brief impact on the Canadian dollar, with the loonie depreciating as much as 0.5 percent to C$1.3120 per US dollar on Wednesday after the Financial Times reported the Saudi Arabia central bank and state pension funds instructed overseas asset managers to dispose of Canadian assets starting Tuesday.
Canada’s currency later reversed those losses, ending the day up 0.3 percent. It was little changed at C$1.3020 in early trading Thursday in Toronto. The S&P/TSX Composite Index closed Wednesday 0.2 percent higher at 16,315.08. Yields on 10-year government bonds fell 1 basis point to 2.36 percent.
Saudi holdings of Canadian dollar reserves are between C$10 billion and C$25 billion, with the upper end of that estimate representing 10 percent of daily Canadian dollar trading volume, according to estimates from the Canadian Imperial Bank of Commerce.
Canadian direct investors in Saudi Arabia, meanwhile, include Barrick Gold Corp., the world’s second-biggest producer, and SNC-Lavalin Group Inc., Canada’s biggest engineering and construction company.
SNC, which has been operating in the kingdom for five decades, said late Wednesday it’s not yet been able to “fully assess” the impact of the tensions with Saudi Arabia on its business. SNC had revenue of about C$993 million in the country last year, representing about 11 percent of total sales.
“If a widespread commercial embargo on Canadian commercial interests in the Kingdom of Saudi Arabia were to be implemented on a prolonged basis, there will be an impact on our future financial performance,” SNC said in a statement.
As for Barrick, the Toronto-based miner said it doesn’t expect its copper mine in Saudi Arabia to be affected by the escalating tensions with Canada.