eToro Survey: 85% of UAE Retail Investors Back Local Stocks

Real Estate

eToro Survey: 85% of UAE Retail Investors Back Local Stocks

A new survey by global trading and investing platform eToro has revealed strong confidence among UAE retail investors in local equities, with 85% currently invested in UAE-listed stocks.

The findings, published in the latest edition of the UAE Retail Investor Beat, surveyed 1,000 retail investors across the Emirates and highlighted a significant preference for homegrown markets amid ongoing global trade tensions.

Strong Belief in the UAE Economy

The study showed that 39% of investors hold Abu Dhabi stocks, 28% own Dubai-listed equities, and 18% have exposure to both. The preference reflects overwhelming optimism about the UAE economy: 63% of respondents described themselves as “very confident” in its performance, while another 29% said they were “somewhat confident.”

When considering the long-term outlook, 59% of investors reported being “very confident” in UAE-listed companies, with 32% expressing “somewhat confident” views. Looking ahead, nearly half of investors (48%) forecast significant gains in UAE markets over the next 12 months, while 34% expect steady growth.

Regionally, 58% of respondents believe the Middle East will deliver the highest returns over the next five years, followed closely by the U.S. (50%).

Real Estate and Technology Lead Sector Optimism

In terms of sectors, real estate remains the top choice for UAE investors, with 55% naming it as the most promising area for investment in the coming year. Technology followed at 48%, while financial services and energy each stood at 37%.

Commenting on the findings, George Naddaf, Managing Director at eToro MENA, said:

“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. Investor confidence in the UAE market remains strong, driven by resilient performance across local indices, solid macroeconomic indicators, and sustained earnings across key sectors. The fact that 85% are already invested in UAE equities reflects a clear preference for local opportunities in the current environment.”

Trade Tensions Fuel Shifts in Strategy

Despite strong local confidence, global trade risks remain a concern. The survey found that 90% of UAE investors expect tariffs and trade wars to significantly impact their portfolios over the next six months, while 89% have already adjusted or plan to adjust their investments.

The most common adjustments include increasing exposure to UAE equities (53%) and commodities (51%). Gold and other precious metals were ranked the most resilient assets in a volatile environment (49%), followed by cryptocurrencies (45%). Crypto is also the most widely held asset class among UAE investors, with 54% reporting exposure.

Naddaf noted:

“With 90% of investors anticipating an impact from tariffs and 89% adjusting their portfolios accordingly, UAE investors are demonstrating adaptability. Many are reinforcing domestic exposure while diversifying into defensive asset classes such as gold and oil. This dual-track approach highlights both confidence in local markets and caution amid global uncertainty.”

Continued Appetite for Investment

Despite external risks, investors remain committed to growing their portfolios. According to the survey, 65% of UAE retail investors have increased contributions in recent months, and 76% expect to raise contributions further in the next three months.

The findings underscore a resilient investment culture in the UAE, marked by strong confidence in local markets, sector diversification, and proactive strategies to navigate global headwinds.