A recent survey conducted by trading platform eToro has revealed that retail investors in the UAE are overwhelmingly optimistic about the prospects of the UAE stock market in 2025, with 80% of participants anticipating significant growth. This optimism reflects growing confidence in the UAE’s economy, driven by ongoing efforts to diversify and modernize its financial landscape.
The survey, which assessed the investment attitudes of local retail investors, identified real estate and construction as the most promising sectors, with 53% of respondents favoring these areas. Technology and telecommunications followed closely, with 43% of investors expressing interest, while banking and financial services were favored by 42%.
George Naddaf, managing director for the Middle East and North Africa (MENA) at eToro, highlighted the UAE’s commitment to economic diversification and capital market development as key drivers of investor confidence. “The government’s efforts to advance financial infrastructure and attract foreign investments are creating robust opportunities for investors,” he said.
In addition to local markets, UAE retail investors are also looking to global opportunities. The survey found that 79% plan to focus on financial services, 72% on technology, and 70% on communications in the first quarter of 2025. A significant factor fueling this optimism is the growing influence of artificial intelligence (AI), with 81% of investors expecting stock prices of AI-driven companies to rise this year.
The cryptocurrency market is also gaining traction among UAE investors, with 81% indicating plans to invest in cryptoassets in the coming quarter. This surge in interest follows a remarkable rally in crypto prices, which recently surpassed $109,000. Additionally, 78% of respondents expressed interest in commodities, while 77% are exploring alternative investments, including real estate and private equity.
“AI and cryptoassets dominated 2024 and continue to drive market momentum in early 2025. The sustained interest in crypto underscores investors’ ability to identify and capitalize on emerging trends. However, diversification remains crucial to managing risk effectively,” Naddaf emphasized.
The UAE’s stock markets have already demonstrated strong performance, with the combined market capitalization of the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) exceeding Dh3.91 trillion in 2024. The ADX alone reached nearly Dh3 trillion by the end of the year, while the DFM’s market capitalization climbed to Dh907 billion, up from Dh687 billion in 2023.
This growth is attributed to a resilient economy, a surge in foreign investments, and a wave of initial public offerings (IPOs). In 2024, Gulf IPOs raised a total of $12.1 billion, with 48 IPOs across six GCC countries, including seven in the UAE. These offerings spanned sectors such as retail, healthcare, and financial services, further deepening the region’s stock markets.
Looking ahead, the IPO pipeline for 2025 appears robust, with approximately 40 IPOs planned across the GCC, including 30 already announced. In the UAE, notable potential listings include hotel operator FIVE, two real estate offerings from Dubai Holdings, and companies such as Dubizzle Group, Alpha Data, and ALEC Engineering & Contracting LLC.
Analysts at Kamco Invest noted that 2024 recorded the highest number of IPOs in the GCC since 2023, with total proceeds reaching $12.9 billion, a 19.8% increase compared to the previous year.
As UAE retail investors prepare for 2025, their confidence in the market, supported by technological advancements and economic diversification, signals a bright future for the region’s investment landscape.
