The latest release of the “Individual Investor Pulse in the UAE” report, published by the global trading and investment platform eToro, has revealed that 85% of individual investors in the UAE are currently invested in local stocks. A significant number of them continue to inject more capital into the domestic market in response to rising global trade tensions.
The survey conducted by eToro included 1,000 individual investors across the country, showing strong support from local investors for domestic markets, with 85% investing in stocks listed on local exchanges. Specifically, 39% are participating in the Abu Dhabi market, 28% in the Dubai market, and 18% in both.
Confidence
These investments reflect a robust confidence in the performance of the UAE economy, as 63% of investors expressed that they are “very confident” in the current economic performance, while 29% indicated they are “somewhat confident.” Regarding the long-term performance of local stocks, 59% feel “very confident,” and 32% are “somewhat confident.”
Looking ahead, 48% of participants anticipate substantial gains in the UAE stock market over the next 12 months, while 34% expect stable growth. This confidence is also echoed in long-term projections, with 58% believing that the Middle East will yield the highest returns in the next five years, followed by the United States at 50%.
When it comes to the sectors that are likely to attract the most investment in the next year, the real estate sector leads at 55%, followed by technology at 48%, then financial services and energy, both at 37%.
Consistent Profits
George Ndaf, the General Manager for the Middle East and North Africa at eToro, stated: “The Dubai and Abu Dhabi markets are among the best-performing stock markets globally this year, significantly outperforming benchmarks such as the S&P 500. The results of the study confirm that investor confidence in the UAE market remains strong, supported by steady performance from local indices and solid macroeconomic indicators, along with consistent profits in strategic sectors. Investors are favoring real estate, technology, financial services, and energy, which are currently benefiting from supportive government initiatives. The fact that 85% of investors are channeling funds into UAE stocks clearly highlights their preference for local opportunities in this global climate.”
Global Tensions
Despite the strong confidence in local markets, geopolitical risks pose a significant concern for investors. Ninety percent of them reported that tariffs and trade wars will have a major impact on their investment portfolios over the next six months, and 89% indicated that they have adjusted or plan to adjust their investments in response.
The most significant adjustment to investment portfolios has been an increased exposure to UAE stocks (53%), followed by increased investment in commodities (51%). These trends align with the classification of gold and precious metals as the most resilient assets in a volatile trading environment (49%). Cryptocurrencies ranked second at 45% and are currently the most held asset class among investors in the UAE, with 54% of them investing in this category.
Trade Wars
George Ndaf added, “With 90% of investors expecting a direct impact from tariffs and trade wars, and 89% adjusting their portfolios accordingly, we see a remarkable level of resilience among UAE investors. In addition to bolstering local investments, many are turning to commodities like gold and oil, which are viewed as reliable hedges against global market fluctuations. This reflects a disciplined and dual investment approach: increasing exposure to relatively protected local markets while simultaneously hedging with defensive assets.”
Despite uncertainties, investor appetite for new opportunities remains strong; 65% of individual investors in the UAE have increased their investment contributions in recent months, while 76% expect to increase these contributions in the next three months.