eToro review: UAE markets enter 2026 with strong fundamentals and sector shifts
After a volatile start to 2025, global equity markets finished the year on a strong footing, supported by the artificial intelligence boom and gains in European defence stocks. According to analysis published by eToro, UAE equity markets also delivered positive returns, though Dubai and Abu Dhabi followed markedly different trajectories.
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Dubai’s DFM General Index reached multi-year highs, rising about 24% including dividends and outperforming the S&P 500. The rally was driven by active retail participation, strong liquidity, and a steady stream of new listings. By contrast, Abu Dhabi’s posted more moderate gains of just over 8%, reflecting the drag from softer oil prices and higher exposure to energy-linked names.
Sector trends and capital flows
Sector performance diverged across the two exchanges. In Dubai, real estate and property-linked stocks were among the top performers, supported by population growth, new visa pathways, and sustained demand from international buyers. Companies such as Union Properties and Amlak Finance benefitted from the ongoing real estate cycle.
In Abu Dhabi, banks and new-economy stocks led the market. Abu Dhabi Islamic Bank stood out, with shares rising more than 40% in 2025, underpinned by strong retail and corporate banking activity. Technology-linked firms, including Presight AI, also attracted investor interest, reflecting the emirate’s focus on data analytics and digital infrastructure.
Foreign inflows remained a central theme across both markets. eToro notes that UAE equities continued to attract international capital, supported by the country’s safe-haven status, regional hub role, and a consistent IPO pipeline on both exchanges.
Macro outlook and themes for 2026
Looking ahead, the macroeconomic backdrop remains supportive. The UAE Central Bank forecasts real GDP growth of around 5.3% in 2026, up from roughly 4.9% in 2025, driven by both oil and non-oil activity. Inflation remains subdued, expected to average about 1.8% in 2026, while credit growth stayed strong in 2025 with double-digit loan expansion and low non-performing loan ratios.
Key sectors to watch include banking, real estate, energy, and AI-driven technology. Tourism, aviation, and logistics are also expected to remain growth engines, particularly in Dubai. Risks include potential oil price weakness and a sharper global slowdown, which could affect sentiment and earnings.
eToro, a global trading and investment platform offering access to a wide range of assets, provides users with access to UAE stocks alongside global equities, ETFs, and other instruments, supported by market analysis and trading tools. As markets move into 2026, eToro’s outlook suggests that while returns may moderate, the UAE’s stability, diversification, and focus on innovation continue to underpin its investment case.
Read also: eToro has signed a partnership agreement with the BWT Alpine Formula One Team
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