UAE Retail Investors Show Strong Preference for Local Stocks Amid Global Tensions

A new survey of 1,000 UAE retail investors has revealed that 85% are currently invested in UAE-listed equities, underlining the strong confidence in the domestic economy and financial markets.

Confidence in Local Markets

The results show broad support for Abu Dhabi and Dubai equities. 39% of respondents hold Abu Dhabi-listed stocks, 28% own Dubai equities, while 18% are invested in both markets. This trend reflects widespread trust in the performance of UAE companies, with over 90% of investors expressing confidence in the local economy.

Looking ahead, optimism remains high. 48% of investors expect significant gains in the UAE stock market over the next 12 months, and another 34% predict steady growth. On a five-year horizon, 58% of participants believe the Middle East will deliver the strongest returns globally, followed by the U.S. at 50%.

Key Sectors of Interest

When asked about the most promising sectors in the next 12 months, real estate topped the list with 55%, followed by technology (48%), financial services (37%), and energy (37%). These findings align with the UAEs ongoing diversification strategy and government-backed initiatives to strengthen non-oil industries.

Impact of Global Trade Tensions

Despite this optimism, global risks remain a concern. 90% of surveyed investors believe trade tensions and tariffs will significantly affect their portfolios in the coming six months. As a result, many are rebalancing their investments.

• 53% plan to increase exposure to UAE equities
• 51% are turning to commodities such as gold and oil
• 49% identified precious metals as the most resilient asset class
• 45% selected crypto assets as a potential hedge

This indicates a dual-track approach: reinforcing confidence in local markets while simultaneously hedging against global volatility through defensive assets.

Growing Participation

Investor activity is on the rise despite uncertainty. 65% of respondents have already increased their contributions in recent months, and 76% intend to raise allocations further in the next quarter.

Conclusion

The findings highlight a clear trend: UAE retail investors are prioritizing local equities and commodities as safe havens amid ongoing trade tensions. The combination of strong economic fundamentals at home and proactive portfolio adjustments suggests that UAE-based investors are both confident and adaptable in the face of global challenges.