Survey shows rising confidence in UAE equities, with 82% expecting the local market to grow and 71% planning to increase investments over the next year
Abu Dhabi: UAE retail investors are becoming increasingly optimistic about the domestic market despite months of geopolitical uncertainty, according to eToro’s latest UAE Retail Investor Beat survey.
The survey, which polled 1,000 retail investors residing in the UAE, found that 82% expect the UAE stock market to rise over the next 12 months, up from 76% in March and the highest level recorded since the question was first introduced in November 2024.
Confidence in locally listed companies also strengthened, with 93% of respondents expressing confidence in the long-term performance of UAE-listed firms, compared with 90% in March. Confidence in the UAE economy increased from 90% to 91% during the same period.
The survey also showed positive sentiment towards the wider region, with 58% of UAE retail investors expecting the Middle East to deliver the strongest long-term investment returns, ahead of the United States (47%) and China (35%).
The improved outlook is increasingly reflected in investment behaviour. Among investors who adjusted their portfolios in response to regional geopolitical tensions, the proportion reducing exposure to UAE equities fell to 14%, down from 25% in March.
Despite elevated global interest rates, 71% of respondents said they plan to increase their investments over the next 12 months, while 21% said they do not intend to change their investment plans.
Nagham Hassan, Market Analyst at eToro, said: “The past six months have been a real test for markets, but UAE retail investors have not lost sight of the bigger picture, which is that the companies themselves kept performing. Two quarters of earnings confirmed it.”
Hassan added that most listed companies continued to grow during the period, while businesses directly exposed to the conflict and related disruptions faced greater challenges.
Geopolitical concerns ease
The survey found that concerns about geopolitical tensions have moderated.
The proportion of investors who believe geopolitical developments will “definitely” have a significant impact on their portfolios over the next six months declined from 38% in March to 30%.
Meanwhile, the proportion expecting little or no significant impact increased from 18% to 25%.
However, investors continue to focus on stability. Almost 49% identified long-term financial security as one of their primary investment objectives, up from 34% in March.
Sector preferences shift
The survey highlighted changing preferences across sectors within the UAE market.
Optimism towards the real estate sector rose to 58%, compared with 54% in March.
Sentiment towards the technology sector remained broadly stable at 49%, up slightly from 48%.
In contrast, optimism towards the energy sector declined from 42% to 35%, while confidence in financial services fell from 37% to 33%.
Commenting on the trend, Hassan said investors have become more selective, focusing on companies less exposed to regional disruptions.
“After the first sell-off when the conflict started, the market absorbed the shock, and while it has not returned to pre-conflict levels, investors stopped selling broadly and instead started rotating out of the companies directly in the line of the disruption, and into the ones better cushioned from it,” she said.
Hassan added that investor interest in real estate reflects that shift, while reduced positioning in energy and financial services is linked to expectations that any easing of regional tensions could lower oil prices and inflation pressures.
The survey was conducted by research company Appinio between August 14 and August 21, 2026, and included self-directed and advised retail investors holding at least one investment product.
Source: Emirates 24|7