AI Stocks Dominate UAE Retail Investors’ Portfolios
A recent survey by trading platform eToro has revealed that over 70 percent of retail investors in the UAE have stocks of companies developing artificial intelligence, showcasing a strong belief in AI’s potential for innovation and competitive advantage.
AI Tools Guide Investment Decisions
Beyond just holding stocks, UAE investors are actively using AI tools like ChatGPT to guide their investment decisions, with 39 percent already leveraging these technologies. Global Markets Strategist at eToro, Ben Laidler, highlighted Microsoft’s significant investment in Abu Dhabi’s G42 as a testament to the UAE’s emergence as a global AI hub.
Generational Trends in AI Adoption
Millennials lead the way in utilizing AI tools, with 40 percent of those aged 25-44 incorporating them into their investment strategies. Baby Boomers and Gen X investors are not far behind, showing a high level of interest in integrating AI into their portfolios.
Future of AI in Investment Strategies
Looking ahead, 52 percent of respondents expressed their willingness to adopt AI tools for future portfolio adjustments, signaling a shift towards embracing technological advancements in investment planning. Despite generational stereotypes, older investors are at the forefront of this trend, with Baby Boomers showing the most enthusiasm for AI integration.
AI Stocks: Performance and Outlook
AI stocks were the top performers in 2023, driving the tech sector revival and boosting the S&P 500 into bull market territory. While a repeat performance in 2024 is unlikely, the rapid adoption of AI is reshaping the stock market and economy, transitioning from hype to reality.
Popular AI Themes Among UAE Investors
eToro’s analysis revealed that AI stocks experienced the highest proportional increase in UAE-based investors on its platform in the first quarter of the year, solidifying AI’s status as a preferred investment theme among retail investors in the region.