Confidence among UAE retail investors in the local economy and stock market remains strong despite geopolitical tensions and market volatility, according to the latest UAE Retail Investor Beat survey by trading and investing platform eToro.
The survey, based on responses from 1,000 UAE retail investors, found that 91% remain confident in the long-term performance of UAE-based companies, unchanged from August 2025. Confidence in the UAE economy stood at 90%, slightly lower than 92% in the previous survey.
It also showed that 83% of respondents currently hold UAE-listed stocks, compared with 85% in August last year.
At the same time, 38% of investors said geopolitical tensions in the Middle East would definitely affect their portfolios over the next six months, while another 40% said they expected some impact.
The survey found that 35% of UAE investors now view the Middle East as economically risky for investment, up from 30% earlier. Expectations of strong growth in the UAE stock market over the next 12 months also eased to 42%, down from 48%, while 34% still forecast moderate growth.
However, long-term sentiment remained positive, with 60% saying they believe Middle Eastern markets will generate the strongest returns over five years or more, compared with 58% previously.
George Naddaf, Managing Director at eToro (MENA), said: “The UAE market continues to demonstrate resilience and retain the trust of local investors. Even during previous periods of unforeseen disruption, such as the COVID-19 pandemic, recovery has been swift. Confidence is still very much part of the picture, even as investors become more selective in how they position for what comes next.”
He added: “It is notable that UAE investors see higher risk but higher return potential in the Middle East. They acknowledge that geopolitical tensions are likely going to slow down momentum in the next year or so, but the majority still anticipate growth, this short-term obstacle is not going to get in the way of the region’s long-term investment thesis.”
The survey also pointed to a more cautious approach to investing. The share of investors increasing portfolio contributions over the past three months fell to 57% from 65%, while those planning to increase contributions in the next three months dropped to 65% from 76%.
Meanwhile, 7% said they plan to reduce the amount invested in their portfolios over the next three months, up from 1% earlier. Another 8% said they had already cut investments over the past three months, compared with 2% previously.
Despite caution, 80% said they had adjusted or planned to adjust their portfolios in response to geopolitical tensions. Rather than reducing exposure to UAE equities, many said they were increasing investments in precious metals, energy commodities and global equities outside affected regions.
Looking ahead, investors were most optimistic about UAE sectors such as real estate, technology and energy. Optimism also rose for energy, healthcare and consumer goods.
Naddaf said: “Risk is recognised, but it is not a deal-breaker for a significant portion of investors. We are seeing a more deliberate approach to portfolio strategies, with investors focusing on sectors and assets they believe are better positioned to withstand volatility. Some sectors in the UAE are already witnessing rebounds like real estate, financial services, and energy.
“Overall, the data points to a clear shift in behaviour rather than a loss of confidence. UAE investors are staying invested, but with a sharper focus on resilience, diversification, and risk management as they navigate an uncertain global environment.”
