With the U.S. playing hard to get, Ottawa and Saudi Arabia are playing a little footsy under the trade table.
Driving the news: Saudi Arabia’s minister of investment, Khalid Al-Falih, was in Canada this week, meeting with Prime Minister Mark Carney, federal ministers, and business leaders as part of a push to strengthen the two countries' economic relationship.
- Al-Falih, who’s in charge of diversifying Saudi Arabia’s economy, said the kingdom is willing to invest in Canadian infrastructure and companies that benefit both countries.
- He also said the door is open for companies like banks, AI firms, and miners to expand there (and is adamant that Cirque du Soleil should follow suit).
Catch-up: Things weren’t always this cozy. In 2018, Ottawa publicly criticized the kingdom's human rights record, leading to a rift that saw diplomats expelled, international students ordered home, and all trade ties frozen between the countries.
- Eventually, the two sides made amends and built a closer trade relationship. From February 2024 to February 2025, trade between the countries jumped by 82%.
- While acknowledging there are still human rights issues, one Canadian political scientist recently called the country unrecognizable from just a few years ago.
Why it matters: With economic stability top of mind in Canada, the idea of deepening ties with Saudi Arabia has become far more palatable. That’s given Ottawa and Canadian businesses a licence to deal with one of the largest sovereign wealth funds in the world.—LA