UAE: Amid Rising Tensions, Gold and Oil Emerge as Dominant Assets

George Naddaf

In a global context marked by geopolitical tensions and economic uncertainty, retail investors in the United Arab Emirates are shifting their strategy. Long dominated by cryptocurrencies, their preferences are now turning toward more tangible assets. Gold and oil have emerged as the most attractive investments, according to the latest edition of the UAE Retail Investor Beat report published by eToro.

This shift reflects a broader structural trend. Commodities now attract 56% of surveyed investors, compared to 47% just a few months earlier. In contrast, cryptocurrencies, which previously held the top position, have stagnated. This change is far from insignificant: it reflects a growing desire to reposition toward assets perceived as more resilient in an uncertain environment.

The geopolitical situation in the Middle East plays a decisive role in this strategic shift. In this context, precious metals are increasingly seen as a natural safe haven, while energy commodities benefit from expectations of potential supply disruptions.

“Retail investors in the UAE are demonstrating their ability to read their environment and quickly adjust their portfolios,” says George Naddaf, Managing Director of eToro for the MENA region. “With ongoing geopolitical tensions, they are actively seeking opportunities in commodities and related sectors.”

This renewed interest is not limited to the assets themselves but extends to related industries. Energy continues to attract growing capital, as do materials. At the same time, renewable energy is gaining momentum and is emerging as a strategic focus for the coming months. It reflects a dual logic: benefiting from current dynamics while anticipating long-term structural shifts.

“This growing interest in renewable energy shows that investors are not solely focused on the short term,” adds George Naddaf. “In the UAE, where non-oil sectors already account for more than 70% of GDP, clean energy is part of a much broader diversification strategy.”

Gold, in particular, continues to confirm its status as a key asset. Widely held in portfolios, it is valued both for its ability to preserve long-term value and for its potential upside. In a volatile environment, it remains a benchmark for many investors.

Expectations are also clear. The vast majority of investors anticipate rising oil and gold prices in the coming months, in some cases significantly. “Gold and oil have experienced significant volatility in recent months, largely driven by developments in the Middle East,” explains George Naddaf.

“Despite these fluctuations, sentiment remains broadly positive, supported by fundamental factors such as central bank gold purchases and supply dynamics in the oil market.”

Beyond short-term trends, this shift reveals a deeper transformation. Retail investors in the UAE appear to be gradually rebalancing their portfolios toward the so-called “real economy.” In an increasingly unstable world, commodities are establishing themselves as both a strategic anchor and a source of stability.

Caroline Haïat