A new survey by trading and investing platform eToro reveals that 85 per cent of UAE-based retail investors are currently invested in local equities, with many doubling down amid global trade tensions.
Confidence in UAE economy and markets
The latest UAE Retail Investor Beat, based on responses from 1,000 investors across the Emirates, shows strong home-market conviction. Of those surveyed, 39 per cent hold Abu Dhabi-listed stocks, 28 per cent hold Dubai-listed stocks, and 18 per cent invest in both.
Investor confidence in the UAE economy remains robust: 63 per cent said they are “very confident” in its current performance, with another 29 per cent “somewhat confident.” Looking further ahead, 59 per cent of respondents expressed being “very confident” in the long-term performance of locally listed stocks, while 32 per cent said they are “somewhat confident.”
Expectations for growth are also high, with 48 per cent forecasting significant gains in the UAE stock market over the next 12 months and 34 per cent predicting steady growth. Over the next five years, 58 per cent believe the Middle East will generate the strongest returns, followed by 50 per cent who view the US as the next best performer.
Real estate emerged as the most attractive UAE sector for the next 12 months (55 per cent), followed by technology (48 per cent), financial services (37 per cent), and energy (37 per cent).
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George Naddaf, managing director at eToro MENA, commented: “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 per cent are already invested in UAE equities reflects a clear preference for local opportunities in the current environment.”
Global tensions drive home bias and commodity interest
Despite optimism, geopolitical risks remain top-of-mind: 90 per cent of investors believe tariffs and trade wars will significantly affect their portfolios over the next six months, with 89 per cent having already adjusted or planning to adjust their investments.
The most common adjustment has been increasing allocations to UAE equities (53 per cent), followed closely by commodities (51 per cent). Among defensive assets, gold and other precious metals were ranked as the most resilient (49 per cent), while crypto (45 per cent) emerged as the second choice. Notably, crypto is already the most widely held asset class among UAE investors, with 54 per cent invested.
George Naddaf added: “With 90 per cent of investors anticipating an impact from tariffs and trade wars, and 89 per cent 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.”
Resilience despite uncertainty
Market uncertainty has not slowed investment appetite. According to the survey, 65 per cent of UAE retail investors increased contributions to their portfolios in recent months, while 76 per cent expect to raise contributions over the next three months.
