The latest edition of the UAE Beat Retail Investor from the ETORO electronic broker shows that 85% of UAE -based retail investors are currently invested in local stocks.
The study, which examined 1,000 retail investors in all the United Arab Emirates, revealed that UAE -based investors are powerful supporters of their local market. Overall, 85% are currently invested in local listed shares, with 39% of respondents holding Abu Dhabi reserves, holding Dubai stocks and 18% holding both.
These investments reflect their trust in the UAE economy. The survey shows that 63% of investors said they were “very confident” in its current performance and an additional 29% said they were “somewhat sure”. When it comes to the long -term performance of shares in local shares, 59% expressed that they were “very confident”, with an additional 32% “somewhat confident”.
Looking forward, 48% of investors provide for significant profits in the UAE stock market over the next 12 months, while 34% expect steady growth. This conviction is also evident in the long -term expectations of investors. 58% believe that the Middle East will deliver the most important yields over the next five years, followed by the US (50%).
When asked what areas of the UAE are causing the most optimism for investment in the next 12 months, real estate exceeded the list at 55%, followed by technology (48%), financial services (37%) and energy (37%).
Commenting on the findings, George Naddaf, Managing Director of Etoro Mena, shared:
“DFM and ADX are one of the best performance in the world this year, surpassing the S&P 500 with a significant margin. Continue to benefit from government -backed initiatives.
Despite strong confidence in their local market, geopolitical risk is firmly in investor’s minds: 90% say invoices and trade wars will significantly affect their portfolios in the next six months and 89% have already adapted or planned to adapt.
While the most common way in which investors adjust their portfolios in response to commercial tensions is the increase in the UAE shares (53%), a second close increases the distribution of goods (51%). This corresponds to respondents who choose gold or precious metals as the most durable type of asset in a volatile commercial environment (49%). Crypto (45%) was the second most popular option and is already the most state of the category of assets among the UAE investors who are currently invested.
George Clean added:
“With 90% of investors predicting an impact on invoices and trade wars and 89% by adjusting their portfolios accordingly, UAE investors show an impressive level of adaptability. Shielded by the influence of invoices, while managing the risk of defenses.”
Uncertainty does not prevent investors from continuing to look for market opportunities. The survey shows that 65% of UAE retail investors have already increased contributions to their investment portfolios in recent months and 76% are expected to increase their contributions over the next three months.