UAE Retail Investors Favor Local Stocks Amid Trade Tensions

A survey by eToro found that 85% of UAE retail investors are invested in UAE-listed stocks, with high confidence in the local economy despite global trade tensions. Abu Dhabi-listed stocks are the most popular, followed by Dubai-listed stocks. Investors expect significant gains in the UAE stock market over the next 12 months, with real estate, technology, and energy sectors drawing the most optimism. 90% of respondents expect tariffs and trade wars to impact their portfolios, with 89% adjusting or planning to adjust their investments.

Title: UAE Retail Investors Show Strong Confidence in Local Market Despite Global Trade Tensions

A recent survey by eToro has revealed that 85% of UAE retail investors are currently invested in UAE-listed stocks, reflecting a strong confidence in the local economy despite ongoing global trade tensions. The survey, which polled 1,000 retail investors across the United Arab Emirates, found that a significant majority of investors are bullish on the UAE stock market [1].

Abu Dhabi-listed stocks are the most popular among UAE investors, with 39% of respondents holding these stocks. Dubai-listed stocks follow closely, with 28% of investors holding these shares. The survey also indicated that 18% of investors hold both Abu Dhabi and Dubai stocks [1].

Investors' confidence in the UAE economy is high, with 63% expressing that they are "very confident" in its current performance, and a further 29% indicating they are "somewhat confident." Similarly, 59% of investors are "very confident" about the long-term performance of locally listed stocks, with 32% expressing "somewhat confidence" [1].

Looking ahead, 48% of investors forecast significant gains in the UAE stock market over the next 12 months, while 34% expect steady growth. This optimism is also evident in investors’ long-term expectations, with 58% believing that the Middle East will deliver the most substantial returns over the next five years, followed closely by the U.S. (50%) [1].

The sectors that evoke the most optimism for investments over the next 12 months are real estate (55%), technology (48%), financial services (37%), and energy (37%) [1]. George Naddaf, Managing Director at eToro MENA, commented on the findings, stating that 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. He attributed the strong confidence in the UAE market to resilient performance across local indices, solid macroeconomic indicators, and sustained earnings across key sectors [1].

Despite this optimism, geopolitical risks are a significant concern for investors. 90% of respondents believe that 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. The most common adjustment is increasing exposure to UAE equities (53%), followed by increasing allocations to commodities (51%) [1].

Gold and precious metals are seen as the most resilient assets in a volatile trade environment (49%), while crypto is the second-most popular option (45%) [1]. Naddaf noted that UAE investors are demonstrating an impressive level of adaptability by reinforcing exposure to domestic markets while managing risk through defensive asset classes [1].

The survey also found that 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 [1].

References:
[1] https://fxnewsgroup.com/forex-news/retail-forex/majority-of-uae-based-retail-investors-currently-invested-in-local-stocks-etoro-survey-reveals/
[2] https://www.khaleejtimes.com/business/markets/uae-retail-investors-increasingly-focused-on-homegrown-markets
[3] https://www.zawya.com/en/capital-markets/equities/mideast-stocks-dubai-gains-on-strong-corporate-earnings-oil-drags-abu-dhabi-rgor62vw