85% of UAE retail investors back local stocks: eToro survey
DUBAI (WAM) A whopping 85% of UAE-based retail investors are currently invested in local stocks, and many are buying even more in response to global trade tensions, based on the latest edition of the UAE Retail Investor Beat by trading and investing platform eToro.The study, which surveyed 1,000 retail investors across the United Arab Emirates, revealed that UAE-based investors are strong supporters of their local market. 85% are currently invested in locally listed equities, with 39% of respondents holding Abu Dhabi stocks, 28% holding Dubai stocks, and 18% holding both.These investments reflect their confidence in the UAE economy - 63% of investors stated they are 'very confident' in its current performance, and a further 29% indicated they are 'somewhat confident'. When it comes to the long-term performance of locally listed stocks, 59% expressed that they are 'very confident', with a further 32 % who are 'somewhat confident'.Looking ahead, 48% of investors forecast significant gains in the UAE stock market over the next 12 months, while 34% expect steady growth.This conviction is also evident in investors' long-term expectations. 58% believe that the Middle East will deliver the most substantial returns over the next five years, followed closely by the US (50%).When asked which UAE sectors evoke the most optimism for investments over the next 12 months, real estate topped the list at 55%, followed by technology (48%), financial services (37%), and energy (37%).Commenting on the findings, George Naddaf, Managing Director at eToro MENA, shared, '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.'Despite strong confidence in their local market, geopolitical risk is firmly on the minds of investors: 90% say tariffs and trade wars will significantly impact their portfolios in the next six months, and 89% have already adjusted or plan to adjust their investments in response.While the most common way investors are adjusting their portfolios in response to trade tensions is by increasing exposure to UAE equities (53%), a close second is increasing allocations to commodities (51%). This corresponds with respondents choosing gold or precious metals as the most resilient type of asset in a volatile trade environment (49%). Crypto (45%) was the second-most popular option, and it is already the most held asset class among UAE investors, currently with 54% invested.George Naddaf added, 'With 90% of investors anticipating an impact from tariffs and trade wars, and 89% adjusting their portfolios accordingly, UAE investors show an impressive level of adaptability. 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.'
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.
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