Saudi Arabia will suspend new trade and investment with Canada after that country's foreign ministry urged Riyadh to release arrested civil rights activists, it said in a statement released to the official Saudi Press Agency on Sunday.
It also gave the Canadian ambassador 24 hours to leave the country and recalled its own ambassador to Canada, the statement by the Saudi foreign ministry said, adding it retained "its rights to take further action."
The Saudi ministry had been briefed that the Canadian foreign ministry and the Canadian embassy urged the Saudi authorities to "immediately release" civil rights activists, the statement said.
Canadian foreign ministry officials were not available for an immediate comment on Sunday.
Read: Saudi Arabia pressures Canada over calls to end Yemen war
Last Wednesday, Human Rights Watch said Saudi Arabia had arrested women's rights activists Samar Badawi and Nassima al-Sadah, the latest two to be swept up in a government crackdown on activists, clerics and journalists. More than a dozen women's rights activists have been targeted since May.
On Friday, Canada said it was "gravely concerned" about the arrests of civil society and women's rights activists in Saudi Arabia, including Badawi, the sister of jailed dissident blogger Raif Badawi.
"We urge the Saudi authorities to immediately release them and all other peaceful human rights activists," Global Affairs Canada said on its Twitter feed.
Canada is gravely concerned about additional arrests of civil society and women's rights activists in #SaudiArabia, including Samar Badawi. We urge the Saudi authorities to immediately release them and all other peaceful #humanrights activists.
— Foreign Policy CAN (@CanadaFP) August 3, 2018
Raif Badawi's wife Ensaf Haidar lives in Canada and recently became a Canadian citizen.
Most of those arrested campaigned for the right to drive and an end to the country's male guardianship system, which requires women to obtain the consent of a male relative for major decisions.
The Saudi statement said it confirmed its commitment to refrain from intervening in the internal matters of other countries, including Canada, and in return rejected any intervention in its domestic affairs and internal relations with its citizens.
Read: Saudi Arabia launches Hajj news site
"Any further step from the Canadian side in that direction will be considered as an acknowledgement of our right to interfere in the Canadian domestic affairs," the statement said.
In 2014, the Canadian unit of US weapons maker General Dynamics Corp won a contract worth up to $13 billion to build light-armoured vehicles for Saudi Arabia, in what Ottawa said at the time was the largest advanced manufacturing export win in Canadian history.