There are 60 major stock exchanges in the world. By itself, the New York Stock Exchange (NYSE) is bigger than the 50 smallest exchanges.
Many investors never even think about investing in the 50 smallest exchanges. This means they are missing out on the most exciting opportunities in the world.
Some of the smallest markets make great investments.
Some small stock exchanges offer more value than large markets. Saudi Arabia’s Saudi Stock Exchange is one of those undervalued opportunities.
A New Sources of Funds
Investors often associate Saudi Arabia with oil, which isn’t surprising since it’s one of the world’s top oil producers by volume. The kingdom churns out approximately 12.39 million barrels per day.
And, if they want to invest in oil, there are other opportunities that seem less risky. Perceived risks in Saudi Arabia include concerns the government could disrupt the economy.
In the past few weeks, that risk became real. The Saudi government arrested dozens of princes and key officials. Arrestees include some of the country’s richest citizens.
There’s not much news from the Kingdom, but speculation is that this action could turbocharge the economy. Experts believe this is basically a “shakedown” where the government grabs some that wealth.
By the time this roundup is over, the government might take back about $800 billion in assets.
And the government could certainly use the money. The kingdom relies on oil for its revenue. Declining oil prices hurt the country.
The detained princes control more than one year of economic output for the country. Those funds could replenish the country’s foreign reserves, which have fallen by a third in the past three years. That would allow the government to lower costs for average citizens by punishing just a few.
All this recent turmoil looks like a positive for the country. That means now could be the time to buy stocks in Saudi Arabia.
