A striking 85% of retail investors in the UAE are currently engaged in local stocks, with many increasing their holdings amid global trade tensions, a study reveals.
The latest UAE Retail Investor Beat from trading platform eToro highlights UAE investors’ strong backing of their local market. Among them, 85% are invested in locally listed equities, with 39% holding Abu Dhabi stocks, 28% holding Dubai stocks, and 18% holding both.
This investment trend underscores their trust in the UAE economy. 63% of investors report being “very confident” in its current state, with an additional 29% “somewhat confident.” Regarding the long-term outlook, 59% are “very confident” in locally listed stocks, while 32% are “somewhat confident.”
Looking forward, 48% of investors anticipate notable gains in the UAE stock market over the next year, and 34% foresee steady growth. Long-term expectations are also high, with 58% predicting the Middle East will yield the highest returns in the next five years, closely followed by the U.S. at 50%.
Real estate is the top sector for investment optimism in the next year at 55%, followed by technology (48%), financial services (37%), and energy (37%).
George Naddaf, eToro Mena’s managing director, noted: “The DFM and ADX are among the top-performing global stock exchanges this year, surpassing the S&P 500 significantly. Our research affirms strong investor confidence in the UAE market, driven by robust local index performance, solid macroeconomic indicators, and consistent earnings across key sectors. Investors favor real estate, technology, financial services, and energy, benefitting from government-backed initiatives. The 85% investment in UAE equities highlights a clear preference for local opportunities.”
George Naddaf, Managing Director MENA at eToro
Global tensions boost local focus and commodity interest
Despite strong local market confidence, geopolitical risks are a major concern for investors: 90% believe tariffs and trade wars will impact their portfolios in the next six months, with 89% already adjusting their investments.
To counter trade tensions, 53% of investors are increasing their UAE equity exposure, while 51% are boosting commodity allocations. This aligns with 49% choosing gold or precious metals as the most resilient assets in a volatile trade environment. Crypto is the second most popular asset at 45%, and leads as the most held asset class among UAE investors, with 54% invested.
Naddaf added: “With 90% of investors expecting tariff impacts and 89% adjusting portfolios, UAE investors demonstrate adaptability. Beyond local stocks, many are reallocating to commodities like gold and oil, seen as reliable hedges against external volatility. This dual-track approach strengthens domestic market exposure while managing risk with defensive assets.”
Uncertainty isn’t deterring market opportunities. 65% of UAE retail investors have increased portfolio contributions in recent months, and 76% plan to increase contributions in the next three months.
