A new eToro survey shows that 85% of UAE retail investors are buying local stocks. While many are buying even more in response to global trade tensions, the report suggests that confidence runs high in the UAE’s economy.
The survey questioned 1,000 UAE investors, and around 39% said they own stocks in Abu Dhabi, 28% in Dubai, and 18% in both. When asked about the UAE economy, 63% said they are very confident, and 29% said somewhat confident.
Looking ahead, 48% expect big gains in the UAE market over the next year. A further 34% expect steady growth. Over five years, 58% believe the Middle East will deliver the best returns, followed by the U.S. at 50%.
George Naddaf, Managing Director at eToro MENA, said that the DFM and ADX have outperformed the S&P 500 this year. “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,” he said.
Portfolio diversification
Among the sectors that have emerged as favorites, investors are most optimistic about real estate (55%), technology (48%), financial services (37%), and energy (37%).
Given the uncertain global trade scenario and changing tariff structures, 90% of those surveyed believe tariffs and trade wars will impact their portfolios soon. 89% have already adjusted or plan to adjust investments. Many are boosting holdings in UAE stocks (53%) and commodities (51%). 49% see gold or precious metals as resilient assets. Meanwhile, 45% favor crypto, and 54% already hold crypto.
Global tensions drive commodity interest
“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,” Naddaf noted.
Uncertainty is not deterring investors from continuing to seek opportunities in the market. 65% of UAE retail investors have already increased contributions to their investment portfolios over the previous months, and 76% expect to increase contributions over the next three months.