The Saudi government on Sunday recalled its ambassador to Ottawa, barred Canada's envoy from returning and placed a ban on new trade, denouncing Canada for urging the release of jailed rights activists. They further ended diplomatic ties, froze all new trade and investment and cancelled flights via their national carrier to Toronto.
Canada says it does not know what will happen to a $13 billion defence contract to sell Canadian-made General Dynamics Corp armoured vehicles to Saudi Arabia.
Almost 100 worldwide students in Waterloo Region could be affected as tensions heat up between Saudi Arabia and Canada.
Relations between the countries have dramatically deteriorated following last week's intervention by Canada's foreign minister, Chrystia Freeland, over the detention of women's rights activists.
In an indication that the quarrel may worsen, Jubeir said that the kingdom was still "considering additional measures" against Canada, but did not elaborate.
The Financial Times recently reported that the Saudi central bank and state pension funds had instructed their overseas asset managers to dispose of their Canadian equities, bonds and cash holdings "no matter the cost". Canada imported 71,300 barrels of crude a day from Saudi Arabia as of 2014, accounting for about 11 percent of the country's imports, according to Natural Resources Canada.
Crown Prince Mohammed bin Salman recently went on a global tour touting proposed economic reforms and promoting his vision for the kingdom as "the next Europe".
A Canadian departmental spokesperson said Global Affairs Canada continues to seek clarity from the Saudi Arabian government on various issues. On Tuesday, Minister of Education Dr. Ahmed Al-Eissa assured Saudi scholarship students in Canada that the Kingdom has worked to provide all facilities for an easy transfer to universities in other countries.
Travel to the country will also be affected in light of an announcement from Saudia Airlines on Tuesday that it will suspend flights to and from Canada starting August 13.
European traders said the main Saudi wheat-buying agency had told grains exporters it will no longer accept Canadian-origin wheat and barley.