85% of UAE retail investors back local stock markets: eToro survey

A whopping 85 per cent 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.

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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 per cent are currently invested in locally listed equities, with 39 per cent of respondents holding Abu Dhabi stocks, 28 per cent holding Dubai stocks, and 18 per cent holding both.

These investments reflect their confidence in the UAE economy. 63 per cent of investors stated they are "very confident" in its current performance, and a further 29 per cent indicated they are "somewhat confident". When it comes to the long-term performance of locally listed stocks, 59 per cent expressed that they are "very confident", with a further 32 per cent who are "somewhat confident".

Looking ahead, 48 per cent of investors forecast significant gains in the UAE stock market over the next 12 months, while 34 per cent expect steady growth. This conviction is also evident in investors' long-term expectations. 58 per cent believe that the Middle East will deliver the most substantial returns over the next five years, followed closely by the US (50 per cent).

When asked which UAE sectors evoke the most optimism for investments over the next 12 months, real estate topped the list at 55 per cent, followed by technology (48 per cent), financial services (37 per cent), and energy (37 per cent).