Saudi Arabia's heir to the throne ordered the arrest of powerful royals and businessmen over the weekend, in a sudden move that is likely to significantly alter the mood among foreign investors. The major purge of the Kingdom's elites was described as an anti-corruption drive by state officials, although outside observers suspected the exercise could be part of a broader movement by Crown Prince Mohammed bin Salman to consolidate domestic power.



Either way, the purge is likely making investors see Saudi assets as riskier, so they're set to demand higher returns. "It depends what your timeline is. If your timeline is next week and you're looking to invest next week then I would say this probably shouldn't be welcome," Michael Stephens, a research fellow at U.K. think-tank the Royal United Services Institute, told CNBC on Monday.

Mohammad bin Salman 'had to break a few eggs'

Saudi's bin Salman has previously vowed the Kingdom will return to " ," as Riyadh continues to push ahead with sweeping cultural and economic reforms. Some believe the extraordinary purge is an attempt by bin Salman to consolidate his power by eliminating potential rivals. And that may herald political uncertainty, tension and possibly unrest not seen before in the history of OPEC's biggest oil producer.

Saudi Deputy Crown Prince, Defence Minister and Chairman of the Council for Economic and Development Affairs Mohammed bin Salman. Fayez Nureldine | AFP | Getty Images