UAE Investors Bet on Cybersecurity and AI Enablers to Fuel National Tech Ambitions

Retail investors in the UAE have shown strong interest in cybersecurity and AI-driven technology stocks in Q3 2025, with Okta and Salesforce emerging as top picks. According to eToro data, Okta Inc. saw a 244% quarter-on-quarter increase in holders, driven by rising demand for identity and access management solutions amid global cyber threats and regulatory pressures. The company's recent expansions in AI-powered authentication and regional partnerships further bolstered investor confidence . Salesforce Inc. followed closely, with a 217% surge in holders, attributed to its strong Q3 earnings and AI integrations, including the launch of enhanced Einstein AI features. These developments positioned Salesforce as a key player in enterprise digital transformation, aligning with UAE investors' focus on tech growth .

Salesforce's Q3 fiscal 2025 results highlighted robust financial performance, with revenue reaching $9.44 billion, up 8% year-over-year. The company's GAAP and non-GAAP operating margins rose to 20.0% and 33.1%, respectively, reflecting disciplined cost management. CEO Marc Benioff emphasized the role of Agentforce, Salesforce's AI system, in reshaping global labor and enterprise operations. The firm also returned $1.6 billion to shareholders through share repurchases and dividends, underscoring its commitment to shareholder value .

The UAE's strategic emphasis on AI and digital innovation, as outlined in its National AI Strategy 2031, has amplified demand for "picks and shovels" of digital transformation-secure platforms and infrastructure enabling AI adoption. George Naddaf, Managing Director at eToro (MENA), noted that investors are increasingly prioritizing cybersecurity and AI-enabled tools over consumer-facing apps. He highlighted that UAE investors view companies like Okta and Salesforce as enablers of the region's tech ambitions, particularly as initiatives like the UAE's AI Strategy 2031 drive sectoral adoption .

Other cybersecurity and AI-related stocks, such as Oracle (+54%) and Broadcom (+16%), also saw gains, reflecting broader interest in cloud and semiconductor infrastructure for AI. However, the market faced volatility in healthcare and crypto stocks. Novo Nordisk (+52%) and Eli Lilly (+25%) attracted investors despite share price dips, while crypto stocks like Bit Digital (-73%) and Hims & Hers (-51%) experienced sharp declines. The latter's drop followed a partnership termination with Novo Nordisk over allegations of deceptive marketing of Wegovy knockoffs, illustrating the risks of speculative bets .

The UAE's AI market is projected to grow significantly, with infrastructure projects like Project Stargate in Abu Dhabi aiming to establish the country as a global AI hub. This initiative, led by G42 and supported by Microsoft and Nvidia, underscores the UAE's focus on high-performance computing to enable advanced AI workloads. Meanwhile, eToro's data reveals a shift in retail investor behavior toward value-driven opportunities, with companies like Salik Company PJSC (+22%) benefiting from stable toll revenue amid Dubai's infrastructure expansions .

Industry experts caution that while the UAE's AI ambitions are ambitious, challenges such as data privacy concerns and geopolitical balancing acts remain. However, the region's strategic partnerships with global tech firms and its commitment to aligning with international AI standards position it to play a pivotal role in the global AI ecosystem. For now, retail investors continue to back companies like Okta and Salesforce, betting on their potential to capitalize on the UAE's AI-driven transformation.

Source: [1] Salesforce Announces Third Quarter Fiscal 2025 Results (https://www.salesforce.com/news/press-releases/2024/12/03/salesforce-announces-third-quarter-fiscal-2025-results/)

[2] Q3 top stocks in UAE: Retail investors back Okta and Salesforce amid cybersecurity and AI momentum (https://menews247.com/q3-top-stocks-in-uae-retail-investors-back-okta-and-salesforce-amid-cybersecurity-and-ai-momentum/:~:text=Retail%20investors%20in%20the%20UAE%20are%20choosing%20Okta,quarterly%20data%20from%20trading%20and%20investing%20platform%20eToro.)