The event started on Thursday with the first races held yesterday, but heavy overnight rain has overwhelmed the circuit and the surrounding road network this morning.
With several parts of the circuit deep under water, teams and drivers have been told to stay away except to retrieve equipment from the paddock and pit lane.
FIA stewards released the following statement after their inspection of the circuit this morning: "It is the collective view of the race directors that the volume of water on the track, and the likelihood of there being any improvement during the day, would make it impossible to run any races safely.
"The stewards of the meeting have accepted their advice and cancelled all races today."
"This is some of the worst flooding I have encountered at the circuit," he said. "A couple of years ago we had a similar situation but were fortunate that the rain did not affect a major event as it has done this weekend.
"It is a shame because there was a very good crowd yesterday and we were expecting a big crowd again today as the weekend falls conveniently during the holiday period.
"However, nothing could be done about the rain that has unfortunately stopped play."
Kamui Kobayashi won yesterday's first GP2 Asia race, while former grand prix driver Vitantonio Liuzzi triumphed on his Speedcar debut.
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