The survey, which included 1,000 individual investors in the UAE, revealed that 91% trust the long-term performance of locally listed companies, the same percentage recorded in August 2025. Confidence in the national economy reached 90%, a slight decrease from 92% in the previous survey. Meanwhile, 83% of participants reported owning stocks listed in the country, compared to 85% previously. Despite these results, 38% of investors said geopolitical tensions in the Middle East will have a direct impact on their portfolios over the next six months, while another 40% believe they will be somewhat affected.

Notably, 35% of investors now view the region as a higher-risk investment environment, up from 30% in the previous survey. The share of those expecting strong growth in the UAE stock market over the next 12 months declined from 48% to 42%, while expectations for moderate growth remained stable at 34%. Over the long term, 60% of investors see Middle Eastern markets as offering the highest returns over five years or more, an increase from 58% previously, surpassing global counterparts.

George Naddaf, Regional Manager at eToro for the Middle East and North Africa, said: “The UAE market continues to prove its resilience and maintain local investor confidence. Even during unexpected disruptions, such as the COVID-19 pandemic, we witnessed a swift recovery. Despite increasing selectivity in their decisions, confidence remains a fundamental element in the overall investment landscape.”

He added: “Investors in the UAE recognize that the region entails a higher level of risk, but it also offers opportunities for greater returns. Although geopolitical tensions may influence the growth rate in the short term, the majority still see positive prospects, and these short-term challenges are not seen as a barrier to the long-term investment appeal of the region.”

On the other hand, investors are showing greater caution in managing their portfolios. The percentage of those who increased their investments over the past three months fell to 57%, compared to 65% previously, while the share of those planning to increase their investments over the next three months decreased to 65%, down from 76%.

While their numbers remain limited, an increasing number of investors plan to reduce their investments in the coming period, rising to 7% compared to 1% previously. Additionally, 8% reported having already decreased their investments over the past three months, compared to just 2% previously.

Despite this caution, investors have not withdrawn from the market, as 80% indicated they have adjusted their investment portfolios or plan to do so due to geopolitical tensions. However, reducing investments in UAE stocks or in affected countries was not the most common option, at only 25% each. Instead, many investors are tending to increase their investments rather than reducing them, by boosting exposure to precious metals (56%), energy-related commodities (43%), and global stocks outside affected areas (31%).

In terms of sectors, investors remain more optimistic about real estate, technology, and energy over the next 12 months. In fact, optimism toward the energy sector rose to 43% compared to 37% previously, healthcare increased to 23% from 22%, and consumer goods climbed to 19% from 16%. Meanwhile, only slight declines were recorded in real estate, which fell to 54% from 55%, and tourism and hospitality, which decreased to 31% from 33%.

Commenting on this, George Naddaf added: “Despite the risks, they do not pose a barrier to a wide range of investors. Today, investors are adopting a more cautious and informed approach in managing their portfolios, with a clear focus on sectors and assets most capable of adapting to fluctuations. At the same time, some sectors in the country have already begun showing signs of recovery, led by real estate, financial services, and energy.”

He concluded, indicating: “Overall, the data suggests a clear shift in investor behavior, not a decline in confidence. Investors in the UAE remain present in the market, but with a more precise vision focused on resilience, diversification, and risk management, in a global environment characterized by uncertainty and volatility.”