A new study by eToro has revealed that 85 per cent of UAE-based retail investors are currently invested in local equities, with many increasing their holdings despite ongoing global trade tensions.
The findings, published in the latest UAE Retail Investor Beat, are based on a survey of 1,000 UAE investors.
The results highlight strong confidence in the local economy and the long-term outlook of Abu Dhabi and Dubai markets.
Investor confidence in UAE markets
According to the survey:
- 85 per cent of investors are invested in locally listed equities
- 39 per cent hold Abu Dhabi stocks
- 28 per cent hold Dubai stocks
- 18 per cent hold both
- 63 per cent are “very confident” in the UAE’s current performance, while 29 per cent are “somewhat confident”
- 59 per cent are “very confident” in long-term local stock performance, with another 32 per cent “somewhat confident”
- 48 per cent expect significant gains in the UAE stock market over the next 12 months, while 34 per cent expect steady growth
When asked about investment opportunities over the next year, UAE retail investors chose:
- Real estate (55 per cent)
- Technology (48 per cent)
- Financial services (37 per cent)
- Energy (37 per cent)
George Naddaf, Managing Director at eToro MENA, said: “The DFM and ADX are among the best-performing stock exchanges in the world this year, outperforming the S&P 500 by a considerable margin.
“Against this backdrop, our research confirms that investor confidence in the UAE market remains strong, supported by resilient performance across local indices, solid macroeconomic indicators, and sustained earnings across key sectors. Investors are favouring real estate, technology, financial services, and energy, as these sectors continue to benefit from government-backed initiatives.
“The fact that 85 per cent are already invested in UAE equities reflects a clear preference for local opportunities in the current environment.”
UAE investor outlook
Despite the strong outlook, investors remain cautious about global volatility:
- 90 per cent believe tariffs and trade wars will significantly impact their portfolios in the next six months
- 89 per cent have already adjusted, or plan to adjust, their strategies in response
- 53 per cent are increasing exposure to UAE equities
- 51 per cent are shifting into commodities, with 49 per cent choosing gold and precious metals as the most resilient assets
- 45 per cent are turning to crypto, already the most widely held asset class among UAE investors, with 54 per cent currently invested
George Naddaf said: “With 90 per cent of investors anticipating an impact from tariffs and trade wars, and 89 percent adjusting their portfolios accordingly, UAE investors show an impressive level of adaptability.
“Besides local stocks, many are reallocating towards commodities such as gold and oil, which are viewed as reliable hedges against external volatility. This suggests a disciplined, dual-track approach: reinforcing exposure to domestic markets that are shielded from the impact of tariffs, while managing risk through defensive asset classes.”
The study also showed that uncertainty is not holding back investment activity.
- 65 per cent of retail investors in the United Arab Emirates have already increased contributions to their portfolios in recent months
- 76 per cent expect to raise contributions over the next three months
