Today's Edition
MAYS IBRAHIM (ABU DHABI)
Retail investors in the UAE remain broadly confident in the country’s economic and market outlook, even as geopolitical tensions in the Middle East prompt a more cautious approach to investing, according to a new survey by eToro.
The latest UAE Retail Investor Beat, based on a poll of 1,000 retail investors, found that 91% are confident in the long-term performance of UAE-based companies, unchanged from August 2025. Confidence in the national economy now stands at 90%, only slightly lower than 92% previously.
The report also showed that 83% of respondents hold UAE-listed stocks, compared to 85% in August. The upbeat sentiment holds despite rising unease over geopolitical risks.
Short-term expectations have softened. The proportion of investors anticipating strong growth for the UAE stock market over the next 12 months fell to 42% from 48%, although 34% continue to expect moderate growth.
Longer term, however, the outlook is more upbeat, with 60% now viewing Middle Eastern markets as offering the strongest returns over five years or more, compared with 58% in the previous survey.
George Naddaf, Managing Director at eToro (MENA), noted that the findings highlight the UAE market’s resilience. “Even during previous periods of unforeseen disruption, such as the COVID-19 pandemic, recovery has been swift,” he said.
“Confidence is still very much part of the picture, even as investors become more selective in how they position for what comes next.”
Fewer respondents reported increasing their portfolio contributions over the past three months, dropping to 57% from 65%, while 65% expect to raise contributions in the coming three months, down from 76%.
Rather than exiting markets altogether, most investors are rebalancing, according to eToro’s survey findings. About 80% of respondents said they have adjusted or plan to adjust their portfolios in response to geopolitical developments.
However, only a quarter cited reducing exposure to UAE equities or to affected countries as their primary strategy. Instead, many are increasing allocations to perceived safe havens and diversifiers, including precious metals (56%), energy commodities (43%) and global equities outside the region (31%).
Sectoral sentiment in the UAE remains strongest for real estate, technology and energy over the next 12 months, according to eToro.
