Don't Sleep on Saudi Arabia

One market that has quietly, but powerfully, performed well for 2019 year-to-date has been Saudi Arabia's Tadawul All Shares Index, which is up 13.82% as of April 3rd 2018. 

On a macro level, the country has been buoyed by a resurgence in the price of oil , coupled with the "Risk-On" feel that has been supporting the markets since January 2019. 

More interestingly, on a domestic level, the country has been supported by global index makers, such as MSCI, promoting Saudi Arabian shares for inclusion into global benchmark indices, such as the MSCI Emerging Markets Index. This has been a boon for Saudi Arabian stocks, as Saudi shares have received billions in fund flows from global investors, as this asset class opens up further. 

Lastly, on a technical basis, the market technicals for Saudi shares are quite strong, with the price being supported by the 10-day EMA since December 2018. Furthermore, the Smart Money Index for the Tadawul All Shares Index has risen steadily since January 2019, indicating strong flows into this market. 

We believe that this trend will continue for 2019, and recommend investors to have exposure to Saudi Arabia. For investors who are interested in profiting from this trend, the ETF KSA provides a great opportunity for investment.