UAE investors pile into gold, oil, leaving crypto behind

Dubai: Retail investors in the UAE are turning towards commodities, with gold and oil emerging as the preferred assets in a period marked by geopolitical tension and market volatility.

Fresh data from eToro’s latest UAE Retail Investor Beat shows commodities have overtaken crypto to become the most widely held asset class among local investors, reflecting a growing preference for tangible assets that respond directly to global events.

The findings point to a clear repositioning of portfolios, with investors leaning into assets tied to energy and raw materials while reassessing exposure to more speculative instruments.

Commodities are now held by 56% of UAE retail investors, up from 47% in August 2025, marking the strongest increase across all asset classes tracked in the survey. Crypto holdings, which previously led investor preferences, remained unchanged at 54%.

The trend is closely tied to current geopolitical developments. Among the 80% of investors who have adjusted or plan to adjust their portfolios, more than half are increasing exposure to precious metals, while a significant share is adding energy commodities.

George Naddaf, Managing Director at eToro MENA, explained that investors are reacting to the broader macro environment. “UAE retail investors are showing they can read the room and quickly adjust their portfolios in response to evolving macro conditions. With ongoing geopolitical tensions, investors are actively looking for opportunities amidst the volatility in commodities and related sectors. This also aligns with the broader long-term shift towards real assets and exposure to the ‘old economy’ that we are seeing globally.”

Sector allocations linked to commodities have also expanded, with energy investments rising to 40% from 31% in the previous survey, while materials climbed to 27% and renewables to 25%.

Interest in renewables stands out, with 41% of investors planning to increase exposure within the next three months. The direction reflects a dual focus on near-term price movements in oil and longer-term energy diversification.

“Moreover, growing interest in renewables shows that retail investors are not only focused on the immediate picture. In the UAE, where non-oil sectors already contribute more than 70% of GDP, clean energy is part of a much bigger diversification story. Recent disruptions have shown us how exposed global markets can be to energy supply shocks, which is why energy diversification is increasingly being seen as both a strategic priority,” Naddaf said.

Gold continues to anchor commodity allocations, held by 88% of investors who are active in the asset class, well ahead of oil, silver and natural gas.

Nearly half of commodity investors allocate more than 20% of their portfolio to these assets, signalling conviction in their role within a broader investment strategy.

The rationale is evenly split. Some investors view gold as a long-term store of value, while others are positioning for further price gains in the months ahead.

Investor sentiment remains firmly positive on both gold and oil. More than 90% expect oil prices to rise over the next six months, while a similar majority anticipates gains in gold.

Expectations are far from modest. Nearly half of investors believe oil prices could rise by more than 15%, while a majority see gold climbing by over 10%.

“Gold and oil have experienced notable volatility in recent months, largely influenced by ongoing developments in the Middle East. Both assets carry particular cultural and economic importance in the UAE. Despite recent price fluctuations, sentiment among local investors remains constructive over the coming six months, with attention on underlying factors such as continued central bank activity in gold and supply dynamics in the oil market,” Naddaf added.