Optimism is high amongst UAE retail investors, with around four in five (80 per cent) anticipating further growth across the UAE stock market in 2025, according to new research by trading and investing platform eToro.
As the UAE government aims to diversify its economy, local investors are recognising an increasingly large opportunity, eToro says. With enhanced levels of trust in the UAE’s economy, UAE retail investors believe that real estate and construction (53 per cent) is the most promising, closely followed by technology and telecoms (43 per cent) and banking and financial services (42 per cent).
Local investors also appear to have significant exposure to UAE stock exchanges, with 46 per cent stating they hold stocks listed on the Dubai Financial Market (DFM), 29 per cent on the Abu Dhabi Securities Exchange (ADX), while 13 per cent are invested in both.
George Naddaf, managing director MENA at eToro, explained: “As the UAE continues to advance its financial infrastructure and attract more foreign investments, the country’s economic outlook remains highly promising. With the government’s commitment to economic diversification and ongoing capital market development, UAE-based investors are well positioned to capitalise on their increasingly sophisticated local investment landscape.”
Looking beyond the domestic stock market and considering global investment opportunities in the first quarter of the year, UAE retail investors are focusing on financial services (79 per cent), technology (72 per cent), and communications (70 per cent) as key growth areas.
Great expectations for AI and crypto
AI is seen as a key catalyst for growth, with 81 per cent of UAE retail investors expecting to see the stock price of AI-driven listed companies increase in 2025, reinforcing a strong belief in innovation-led opportunities worldwide.
Similarly, among asset classes, cryptoassets stand out as a major focus, with just over four in five (81 per cent) planning to invest in cryptoassets in the first quarter, followed by commodities (78 per cent), alternative investments like real estate and private equity (77 per cent) and domestic equities (75 per cent).
“AI and cryptoassets dominated 2024 and continued to drive market momentum in the first month of 2025. UAE retail investors’ sustained enthusiasm for crypto, even before its record-breaking performance surpassing $109,000, underlines their ability to identify emerging trends and capitalise on them,” George Naddaf adds. “However, portfolio diversification remains key to navigating market cycles and mitigating risk. By complementing local exposure with global assets investors can build resilience against volatility while capturing growth from broader economic trends.”
