2. Saudi Arabia
One of the world’s richest countries has become one of the countries with political and civil unrest in 2017 as well. It has become an unstable region in recent years with the increased unrest in the Middle East. The new king and his crown prince have shown an aggressive streak in both domestic and foreign affairs by directly and indirectly fighting wars and conflicts in Yemen, Syria and Libya. The economy is also not doing well due to the decreased price of oil, while the Shia minority is also showing signs of agitation. Its closest ally, the U.S, has also become distant, as it no longer relies on Saudi oil given the shale gas revolution. The recent nuclear deal between the U.S and Iran has made the geopolitical situation even more difficult for Saudi Arabia’s rulers.
The iShares MSCI Saudi Arabia Capped ETF (NYSEARCA:KSA) provides access to a basket of locally-listed Saudi stocks and tracks the MSCI Saudi Arabia IMI 25/50 Index. Though the ETF has given a decent return of 12% in the last year, it remains a doubtful investment in 2017.
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