New Survey Reveals 85% Of UAE Retail Investors Are Confident In Local Stocks And Market Growth

The latest UAE Retail Investor Beat survey conducted by eToro, a trading and investing platform, reveals a robust investment culture among UAE-based retail investors. A significant 85% of those surveyed are currently channeling funds into local equities.

This trend is not just a reflection of present engagements but also indicates a bullish outlook towards the UAE stock market, with almost half of the respondents (48%) predicting substantial gains in the coming year.

Investors in the UAE are not just optimistic about immediate returns but also have a long-term vision for their investments. The survey, which gathered insights from 1,000 retail investors, shows that 58% believe the Middle East, particularly the UAE, will outperform other regions in terms of investment returns over the next five years.

The confidence extends to specific sectors within the economy, with real estate (55%), technology (48%), financial services (37%), and energy (37%) identified as the most promising areas for investment in the foreseeable future.

Global trade tensions and geopolitical uncertainties are influencing investment decisions, yet they haven't dampened the spirits of UAE investors. A staggering 90% acknowledge the potential impact of tariffs and trade wars on their portfolios, with 89% taking proactive steps to adjust their investments in anticipation. The primary strategy for many is to bolster their investment in UAE equities (53%) and commodities (51%), demonstrating a strategic shift towards assets perceived as more resilient in volatile times.

The inclination towards commodities is further underscored by the preference for gold and precious metals, seen by 49% of investors as the most resilient assets in a turbulent trade environment. Cryptocurrencies also feature prominently, with 45% of respondents viewing them as a viable investment option, and 54% already holding crypto assets in their portfolios.

The local market's strength is a significant draw for investors, buoyed by the performance of the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX), which have outpaced global indices like the S&P 500.

George Naddaf, Managing Director at eToro MENA, highlights the robust investor confidence in the UAE market, "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% are already invested in UAE equities reflects a clear preference for local opportunities in the current environment."

The survey also sheds light on the investment patterns, with a notable division of interest in Abu Dhabi stocks (39%), Dubai stocks (28%), and both (18%). This diverse engagement reflects a deep-rooted confidence in the UAE's economic stability and growth potential, underpinned by the positive sentiment towards the current and future performance of locally listed stocks.

Despite the looming shadow of global uncertainties, UAE investors are not just reactive but also proactive in their approach. Many are not only adjusting their current portfolios but are also planning to increase their investment contributions in the coming months. This forward-looking strategy is evident from the 65% of investors who have already ramped up their contributions, with a further 76% intending to do so in the near future.