UAE investors say emotional discipline is key to market success

09/10/2025 03:14 AST

In a region where retail investing is on the rise, emotional control may be the most critical factor driving investor success in the UAE, a study showed.

According to a survey by global trading platform eToro, a striking 86 per cent of Emirati investors believe that managing emotions is essential to achieving positive investment outcomes. More than half - 53 per cent - rank it as the single most important element of successful investing.

The findings highlight a growing self-awareness among UAE investors, who are not only acknowledging the emotional rollercoaster of market participation but also taking proactive steps to navigate it. While feelings of hope (55 per cent), excitement (53 per cent), and confidence (50 per cent) dominate their recent investing experiences, anxiety (36 per cent) and regret (14 per cent) also feature prominently.

Rather than being paralyzed by market uncertainty, UAE investors are demonstrating agility. Nearly half (46 per cent) have already adjusted their portfolios in response to global trade tensions, with another 44 per cent planning to do so. Their strategies vary: 53 per cent are increasing exposure to local equities, 51 per cent to commodities, 40 per cent to multinationals less affected by trade disputes, and 35 per cent to global equities outside impacted regions.

The survey also sheds light on how investors respond to downturns. When portfolios drop significantly in value, 45 per cent consult financial advisors, 41 per cent shift to safer assets, and 36 per cent buy more to average down. Only 27 per cent opt to sell their holdings, suggesting a level-headed approach to market volatility.

Social influence plays a role too. While 34 per cent of respondents admit they often feel compelled to invest when others are doing well, 50 per cent say they sometimes feel this pressure. However, most UAE investors rely on professional sources for financial advice - 60 per cent turn to advisors, 50 per cent to online platforms, and 41 per cent to financial news outlets - rather than family, friends, or influencers.

George Naddaf, Managing Director at eToro MENA, commented, "Markets are shaped by human behavior, and emotions sit at the core of every decision. What this survey shows is that UAE investors are not only aware of their emotions - they're learning to master them."

This emotional discipline appears to be paying off. The Dubai Financial Market General Index (DFMGI) has climbed 10.6 per cent year-to-date, reflecting strong investor confidence and robust market activity. Meanwhile, the Abu Dhabi Securities Exchange (ADX) has posted a year-to-date gain of over 9 per cent, underscoring the resilience of UAE capital markets amid global volatility.

As emotional intelligence becomes a defining trait of successful investing, UAE market participants appear to be charting a course that blends self-awareness with strategic action.

Khaleej Times