Retail investors from Gulf and beyond target region's stocks

Retail investor interest in Gulf stock markets has risen sharply, driven by a widening appetite for UAE and Saudi equities among global retail traders, according to eToro and regional market participants. Israel’s eToro, which manages about $17.6 billion in funds under administration and serves nearly four million customers worldwide, now offers roughly 60 Dubai-, Abu Dhabi- and Riyadh-listed stocks on its platform. The surge in demand has come amid heightened bourse volatility since the start of the Iran war, where "precipitous declines and sharp rebounds" have provided both opportunity and risk for short-term traders.

"This is not isolated interest in one or two names, but a broad-based rise in demand across UAE and Gulf equities, meaning they are increasingly becoming a core part of global retail investors’ international portfolios," said Sam North, a market analyst at eToro.

Platform data and market patterns

eToro's client data show substantial increases in ownership of several Gulf-listed shares over the past six months. The number of users holding Aldar, Emaar Properties and Emaar Development shares has surged in the range of 90–137 percent — among the largest percentage increases across the platform. Saudi Aramco remains the most widely held Gulf stock on eToro, while Dubai companies occupy the second through sixth places in the Gulf top ten: Emaar Properties, road toll operator Salik, Dubai Electricity and Water Authority (Dewa), Emaar Development and Emirates NBD.

• eToro: ~$17.6 billion under administration; nearly 4 million customers
• ~60 Gulf-listed stocks available on eToro
• Aldar, Emaar Properties, Emaar Development: user ownership up 90–137% in six months
• Short selling of Gulf stocks is not available on eToro
• Saudi individual investors: 50% of bourse turnover in the 15 months to March 31; net sellers of $2.7bn of Riyadh-listed stocks in that period
• Individuals accounted for 29% of trading activity on the Dubai Financial Market in 2025

North said the interest is not merely momentum chasing but reflects sectoral narratives: "Oil continues to attract interest through giants like Saudi Aramco, while real estate has emerged as a major growth theme in the UAE. Utilities and banks also remain popular because they offer the kind of earnings resilience, dividend potential and defensive characteristics that many investors are looking for." At the same time, eToro customers cannot short Gulf stocks on the platform, limiting hedging options for retail traders.

But some market veterans warn of structural shifts in trading behaviour that carry risks. "The way they trade isn’t based on company fundamentals or economic research, it’s momentum driven," said Ryan Lemand, founder and chief executive of Abu Dhabi’s Neovision Wealth Management. "Retail investors go to Reddit, collectively decide on what they’re going to do, and they act almost like a very large institutional client in terms of their buying power. So, they drive stocks up and down."

Outlook

With retail engagement rising, Gulf markets face a mixed outlook: deeper international retail participation can boost liquidity and diversify holders, yet it may also increase sensitivity to global sentiment swings and momentum-driven flows. How institutional investors, regulators and retail platforms respond to elevated volatility—and whether retail demand proves sustained beyond short-term momentum—will shape market dynamics across the Gulf into the rest of 2026.