Analysts say sell-off could hurt investor confidence in Saudi Arabia.
Saudi Arabia’s escalation of actions against our country continues.
There are now reports that their central bank and their state pension funds are selling-off Canadian assets.
It is being said that the assets are being sold-off “no matter the cost.”
According to the Financial Times, “The sell-off began on Tuesday and underlines how the Gulf monarchy is flexing its financial and political muscle to warn foreign powers against what it regards as interference in its sovereign affairs. “This is severe stuff,” said one banker.”
However, Saudi Arabia may pay a price for their massive overreaction:
“Analysts say Riyadh’s decision to sell off Canadian assets risks further undermining business confidence in the kingdom. “These sort of actions are not going to assure minds about the stability of doing business there,” said a leading emerging markets investor.”
Interestingly, Saudi Arabia still seems to want the $15 billion in weapons that Canada is selling to them. Cutting off that deal and banning future weapon sales to Saudi Arabia would be a way for the Canadian government to retaliate and send a clear message that Canada won’t be pushed around.
Yet, so far, the Trudeau government has failed to retaliate or hit back in any way.
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