Today's Edition
KHALED AL KHAWALDEH (ABU DHABI)
A new survey by global trading platform eToro found that an overwhelming 80% of retail investors in the UAE anticipated growth in their ADX portfolio within the next year.
The survey, which was commissioned by platform eToro, involved a sample of 1,000 self-managed retail investors based in the UAE and found that only 42% of UAE retail investors had exposure to ADX-listed stocks as of December 2024.
It was released ahead of a launch of a new partnership that would see some ADX listings made available on eToro platform with the intention of growing the number of investors on the platform.
The optimistic sentiment was in line with the results of eToro's global survey which surveyed 10,000 retail investors across 12 countries. It found that 59% anticipated continued growth in stocks.
Confidence in AI stocks is high, with 11% expecting them to rise significantly in 2025, whilst 44% expect more gradual increases in their share prices.
"Retail investors are entering 2025 with a strong sense of optimism, buoyed by the ongoing bull market and the outstanding performance of AI stocks," eToro analyst, Sam North, said.
"While extremely high retail investor sentiment can often be a signal for a pullback, we've also seen markets historically perform well when a new president enters the White House, so you can't blame investors for feeling positive."
The survey also found investors were most likely to invest in Tesla among major US stocks, which North said could be indicative of Elon Musk's vocal support for President-elect Donald Trump.
With the inauguration looming on January 20, eToro's analysis appeared to show the election results having a substantial impact on portfolio strategies, with almost 51% of respondents tweaking their strategies in response. Of those planning changes, 68% said they would increase their allocation to cryptocurrencies and 45% said they would increase their cash holdings.
"The re-election of Donald Trump has introduced a new dynamic for retail investors, with many taking a proactive approach to portfolio adjustments," North Added.
"The sharp increase in crypto allocations reflects growing confidence in the asset class, bolstered by Trump's pro-crypto rhetoric."
The UAE has grown as a crypto hub in recent years, with several exchanges setting up bases in the country due to its progressive legislation and effective governance.
Donald Trump's son Eric gave an emphatic speech in Abu Dhabi where he rallied investors behind cryptocurrencies saying his father would help see Bitcoin reach a valuation of a billion dollars. He also lauded the UAE as being one of the countries that would likely benefit from this "new financial order" that the new administration would supposedly try to install.
