A striking 85% of UAE-based retail investors are currently invested in local stocks, with many buying even more in response to global trade tensions, according to the latest UAE Retail Investor Beat from trading and investing platform eToro.
The study, which surveyed 1,000 retail investors, found that 39% hold Abu Dhabi stocks, 28% hold Dubai stocks and 18% hold both. Some 63% of investors said they are ‘very confident’ in the UAE economy’s current performance, with a further 29% ‘somewhat confident’. Looking longer term, 59% are ‘very confident’ in the outlook for locally listed stocks.
Nearly half (48%) forecast significant gains in the UAE stock market over the next 12 months, while 34% expect steady growth. Real estate (55%), technology (48%), financial services (37%) and energy (37%) are the sectors viewed most optimistically.
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. Our research confirms that investor confidence in the UAE market remains strong.”
Geopolitical risk remains a concern, with 90% saying tariffs and trade wars will impact portfolios. Investors are responding by increasing exposure to UAE equities (53%) and commodities (51%), particularly gold (49%).
Despite uncertainty, 65% of UAE investors have already increased portfolio contributions and 76% expect to do so in the next three months.
