UAE Retail Investors Steady Amid Geopolitical Tensions, Long-Term Optimism Prevails

Mohammed Fathy

Last updated 27-04-2026

4 min

More than 90% remain confident in UAE companies despite regional tensions.

Risk awareness is rising, with 35% calling the Middle East “economically risky”.

Short-term caution grows, but 60% expect strongest returns over five years.

Investors are not “running for the exit”, just reallocating to metals and energy.

Confidence hasn’t collapsed; it’s a shift towards diversification and measured risk.

Investor confidence in the UAE seems to be holding its ground, even as geopolitical tensions rumble on in the background. According to the latest UAE Retail Investor Beat survey by trading and investing platform eToro, more than 90% of retail investors in the country remain confident in the long-term performance of UAE-based companies. In numbers, that is 91% of respondents, unchanged from August 2025.

The survey, which polled 1,000 UAE retail investors, paints a picture that is steady rather than euphoric. Confidence in the wider UAE economy stands at 90%, only slightly down from 92% previously. Meanwhile, 83% of respondents say they hold UAE-listed stocks, just a small dip from 85% before. In other words, while nerves may be there, people are not exactly running for the exit.

That said, there is no ignoring the tension in the region. Around 38% of investors believe geopolitical developments in the Middle East will definitely affect their portfolios in the next six months, while another 40% expect some impact. Interestingly, 35% now describe the Middle East as economically risky, up from 30% in the last survey. So yes, risk awareness is rising.

And yet… long-term optimism has not vanished. While fewer investors expect strong growth in the UAE stock market over the next 12 months, down from 48% to 42%, 60% now believe the Middle East will deliver the strongest returns over five years or more, slightly higher than before. It’s a bit of a balancing act: short-term caution, long-term conviction. I’ve seen this before during previous cycles; founders and investors in the region can be surprisingly resilient when the chips are down.

George Naddaf, Managing Director at eToro MENA, said the UAE market continues to show resilience and retain investor trust. He pointed out that even during major disruptions such as the COVID-19 pandemic, recovery was swift. According to him, while investors recognise rising risks, confidence is still very much part of the picture and many are becoming more selective in how they position themselves for what comes next.

He added that investors appear to see both higher risk and higher return potential in the Middle East. In his words, geopolitical tensions may slow momentum in the coming year, but most still expect growth, and the region’s longer-term investment case remains intact.

Still, behaviour is shifting. Fewer investors have increased their portfolio contributions in the past three months, 57% compared to 65% previously. Looking ahead, 65% say they plan to raise their investments in the next three months, down from 76%. A small but growing minority are trimming back: 7% plan to reduce their portfolios in the coming quarter, up from just 1%, while 8% say they have already scaled down in the past three months.

From my experience speaking to early-stage founders across MENA, this kind of caution doesn’t necessarily mean fear. Sometimes it simply means people are thinking twice, sharpening their pencils, and looking for safer bets. And believe it or not, many investors are not reducing exposure to UAE equities as their first move. Only 25% say they are cutting holdings in UAE stocks or in countries directly affected by tensions.

Instead, a sizeable group is reallocating. More than half, 56%, are increasing exposure to precious metals. Around 43% are turning to energy commodities, while 31% are putting more into global equities outside the affected regions. It’s not retreat, it’s redistribution.

Sector-wise, real estate remains the top favourite for the next twelve months, with 54% expressing optimism, only a slight dip from before. Technology and energy also feature strongly, and optimism around energy in particular has climbed from 37% to 43%. Healthcare and consumer goods have inched up as well, to 23% and 19% respectively. Tourism and hospitality saw a small decline to 31%, while financial services and energy are already witnessing rebounds, according to Naddaf.

Overall, the survey suggests a shift in behaviour rather than a collapse in confidence. Investors appear more deliberate, more focused on diversification and risk management. To me, that feels spot on. When uncertainty grows, smart money does not panic, it reajusts.

For entrepreneurs reading this on Arageek, there is a quiet lesson here. Capital may become a bit more selective, maybe even a bit of a faff to secure, but it is still there. The belief in the UAE and the broader region’s long-term potential hasn’t disappeared. If anything, it has become more mature, and perhaps that is not such a bad thing after all.

🚀 Got exciting news to share?

If you're a startup founder, VC, or PR agency with big updates—funding rounds, product launches 📢, or company milestones 🎉 — AraGeek English wants to hear from you!