UAE retail investors are showing increasing confidence in equities, with 82% anticipating growth in the local market over the next year, according to eToro’s latest UAE Retail Investor Beat survey. This marks a rise from 76% in March and is the highest level recorded since the survey began in November 2024, as reported by Emirates247.
The survey, which included responses from 1,000 retail investors in the UAE, also revealed that 93% of participants have confidence in the long-term performance of UAE-listed companies, up from 90% in March. Additionally, confidence in the UAE economy has increased slightly from 90% to 91% during the same period.
Positive sentiment extends beyond the UAE, with 58% of respondents believing the Middle East will yield the strongest long-term investment returns, surpassing expectations for the United States (47%) and China (35%). This optimistic outlook is reflected in changing investment behaviours, as the percentage of investors reducing their exposure to UAE equities has decreased from 25% to 14% since March.
Despite the challenges posed by elevated global interest rates, 71% of those surveyed plan to increase their investments over the next year, while 21% intend to maintain their current investment strategies. Nagham Hassan, a Market Analyst at eToro, noted that the past six months have tested markets, but UAE retail investors remain focused on the overall performance of companies.
Concerns regarding geopolitical tensions have also eased, with the proportion of investors believing these developments will significantly impact their portfolios dropping from 38% in March to 30%. Conversely, those expecting little or no significant impact rose from 18% to 25%. Investors are increasingly prioritising long-term financial security, with nearly 49% identifying it as a primary investment objective, up from 34% in March.
Shifts in Sector Preferences
The survey highlights a shift in sector preferences among UAE investors. Optimism towards the real estate sector has increased to 58%, compared to 54% in March. Sentiment towards the technology sector remains stable at 49%, while confidence in the energy sector has declined from 42% to 35%, and in financial services from 37% to 33%.
Hassan commented that investors are becoming more selective, focusing on companies less affected by regional disruptions. Following initial sell-offs due to geopolitical conflicts, the market has absorbed the shock, leading investors to rotate their portfolios towards companies that are better insulated from such disruptions.
The survey was conducted by Appinio between August 14 and August 21, 2026, and included both self-directed and advised retail investors holding at least one investment product.
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