A recent survey conducted by eToro, a trading and investment platform, indicates that 85 percent of retail investors in the UAE are actively investing in local stocks, with many reinforcing their positions in light of global trade uncertainties.
Strong Confidence in the UAE Economy and Markets
The latest report, the UAE Retail Investor Beat, is based on feedback from 1,000 investors across the Emirates, reflecting a strong commitment to the domestic market. Among those surveyed, 39 percent hold stocks listed in Abu Dhabi, 28 percent in Dubai, and 18 percent invest in both markets.
Investor sentiment towards the UAE’s economic prospects remains high, with 63 percent stating they are “very confident” in the economy’s current state, and another 29 percent expressing “somewhat confidence.” Regarding the long-term outlook for locally listed stocks, 59 percent noted they are “very confident,” while 32 percent are “somewhat confident.”
Growth expectations are optimistic, as 48 percent predict substantial growth in the UAE’s stock market within the next year, while 34 percent foresee steady progress. Looking ahead to the next five years, 58 percent believe the Middle East will yield the highest returns, with 50 percent seeing the US as the second-best option.
The real estate sector stands out as the most appealing area for investment in the UAE over the coming year (55 percent), followed by technology (48 percent), financial services (37 percent), and energy (37 percent).
George Naddaf, managing director at eToro MENA, remarked, “The DFM and ADX have emerged as some of the leading stock exchanges globally this year, significantly outperforming the S&P 500. Our findings underscore that investor confidence in the UAE market is strong, bolstered by positive performance across local indices, solid economic indicators, and consistent earnings from key sectors. Investors are particularly keen on real estate, technology, financial services, and energy, all of which are benefitting from government initiatives. The preference for local opportunities is evident, as 85 percent are invested in UAE equities.”
Geopolitical Tensions Fuel Home Bias and Commodity Interest
Despite the positive outlook, geopolitical risks are a significant concern for investors: 90 percent believe that tariffs and trade conflicts will have a considerable impact on their portfolios in the next six months, with 89 percent having already made or planning to make adjustments to their investments.
The most common change has been to increase allocations to UAE stocks (53 percent), closely followed by a shift towards commodities (51 percent). Among defensive options, gold and precious metals were identified as the most stable assets (49 percent), while crypto (45 percent) was noted as the second preference. Notably, crypto is the most widely held asset type among UAE investors, with 54 percent invested.
George Naddaf added, “With 90 percent of investors anticipating effects from tariffs and trade disputes, and 89 percent altering their portfolios in response, it demonstrates a remarkable adaptability among UAE investors. In addition to local stocks, many are reallocating towards commodities like gold and oil, perceived as reliable defenses against external market volatility. This illustrates a balanced approach: enhancing exposure to domestic markets, which are relatively insulated from tariffs, while managing risks through defensive assets.”
Investment Resilience Amid Uncertainty
Despite uncertainty in the market, investment enthusiasm remains strong. According to the survey, 65 percent of retail investors in the UAE have increased their portfolio contributions in recent months, and 76 percent intend to raise those contributions in the upcoming three months.