Residents of the United Arab Emirates are increasingly diversifying their savings across a broader range of financial instruments, moving beyond the traditional focus on real estate. Financial advisers and brokerage firms report heightened interest in global equities, gold, fixed income products, and digital assets as investors seek to balance growth potential with risk management.
Artificial intelligence and technology stocks have emerged as a leading investment theme in 2026. Data from Sarwa, an online trading platform, shows that transactions related to AI account for about 25% of the platform’s trading activity, with investors targeting not just headline companies but also firms involved in semiconductor manufacturing, memory production, and data center infrastructure. Faisal Abdulshak-Arif, a wealth advisor at Sarwa, noted that this trend has strengthened since April. Similarly, Century Financial, a UAE-based brokerage, has observed growing demand for semiconductor and automation companies, particularly as the Nasdaq-100 index continues to reach record highs. Vijay Valecha, the firm’s Chief Investment Officer, highlighted exchange-traded funds (ETFs) like QQQ and SOXX as popular vehicles for gaining exposure to these sectors.
ETFs remain the preferred investment choice for many UAE investors due to their ability to offer diversified exposure. Valecha identified ETFs tracking the S&P 500, Nasdaq-100, and semiconductor sectors—such as SPY, QQQ, and SOXX—as dominating client portfolios. The SPY ETF, one of the oldest and most widely traded in the U.S., manages assets totaling approximately $806 billion. Meanwhile, the SOXX ETF, which focuses on chipmakers like Nvidia, AMD, and Micron, has delivered an estimated 85% return year-to-date. At Sarwa, investors also favor Sharia-compliant ETFs tracking the S&P 500, alongside significant interest in major initial public offerings, notably the June SpaceX listing.
Gold continues to serve as a core component of portfolio diversification, acting as a hedge against inflation, currency depreciation, and geopolitical risks. Prices of the metal have experienced significant volatility this year, reaching all-time highs near $5,589 per ounce before declining and stabilizing around $4,300. In the UAE market, 24-carat gold recently traded around Dh517 per gram, while 22-carat and 18-carat varieties were priced at approximately Dh478.75 and Dh393.50 per gram, respectively. The sub-Dh400 level for 18-carat gold has become an attractive selling point for local jewelers. Madhur Kakkar, CEO of Elevate Financial Services, emphasized that gold should be viewed as a portfolio diversifier rather than a sole investment focus, helping investors navigate periods of heightened market uncertainty.
Fixed income securities, including UAE sovereign Sukuk and short-term money market funds, have gained traction amid rising global interest rates. Kakkar pointed to the appeal of these instruments for investors seeking steady income while maintaining liquidity. The recent pricing of the second retail tranche of UAE T-Sukuk at 5.06%—higher than the maiden issuance—has further increased the attractiveness of dirham-denominated, government-backed, Sharia-compliant debt for local investors. For many UAE residents with expenses in dirhams, these factors make sovereign Sukuk a compelling alternative to lower-yielding bank deposits.
Digital assets, such as cryptocurrencies, continue to attract investors with higher risk tolerance. Bitcoin exposure via ETFs, including IBIT, has expanded steadily, with the fund now accounting for about 60% of assets in U.S. spot Bitcoin ETFs within a broader $102.5 billion market, according to Valecha. This growth points to increasing institutional acceptance of digital currencies. Although cryptocurrency trading volumes on platforms like Sarwa have moderated somewhat in recent months, the asset class remains a key component for some investors’ portfolios.
Financial experts stress that there is no one-size-fits-all investment strategy. Kakkar advised that a balanced approach should combine liquid assets for short-term needs, fixed income for stability and income generation, global equities for long-term growth, and selective diversifiers such as gold or real estate. Ultimately, an individual investor’s asset allocation will depend on their specific goals, time horizon, and risk appetite.