Today's Edition
SARA ALZAABI (ABU DHABI)
George Naddaf, Managing Director of eToro Middle East, in an interview with Aletihad, highlighted positive investor sentiment and the growing role of AI in financial markets.
The findings of eToro's Retail Investor Beat (UAE RIB 4th Edition) revealed that UAE investors have remained proactive and resilient in the face of global volatility.
"We saw that 89% of investors anticipated the impact of tariffs at the beginning of this year, and 90% of them adjusted their portfolios accordingly. They moved into defensive assets such as cryptocurrencies, gold, oil and local stocks," Naddaf said.
Rather than retreat, investors sought out opportunities.
"Uncertainty didn't prevent them from seeking more opportunities. In fact, 65% of UAE retail investors increased contributions to their portfolios in the past month, and 76% expect to increase contributions further," he noted.
Confidence was especially visible in Abu Dhabi and Dubai.
"There is a tendency toward local stocks, toward diversification using the Abu Dhabi Stock Exchange and Dubai Financial Markets," he said.
"The UAE demonstrated robust post-pandemic recovery, supported by diversification strategies. That strengthened investor confidence. Investors say: yes, we are confident, we have risk appetite, and we are investing. This is not the same scenario in Europe or elsewhere."
He added that initial public offering (IPO) activity, strong dividends, and even a sense of "patriotic investment" continue to drive local interest.
Commenting on AI and its integration into trading, Naddaf said, "AI is not new - it is mainstream now".
According to the report, 73% of UAE investors (25% often + 48% occasionally) have acted on investment recommendations made by an artificial intelligence engine, compared to 27% who rarely or never do.
He noted that eToro had many AI-powered smart portfolios, each one analysing big data to identify opportunities and manage risk.
These portfolios are rebalanced quarterly and designed to deliver returns with controlled risk.
Yet Naddaf stressed that AI has limits.
"AI should not provide advice. The decision remains with the investor. What AI provides is quick and accurate analysis of big data, helping investors make informed decisions," he explained.
