UAE retail investors of different ages converge on digital tools, diverge on sectors
UAE retail investors across generations are closing the gap on digital behaviour, according to new data from eToro’s UAE Retail Investor Beat survey. The platform’s latest findings show near-parity in the use of social media and artificial intelligence for investment decisions, while differences persist in asset exposure and sector preferences.
eToro’s survey compared two broad age cohorts, adults aged 18 to 34 and those aged 35 to 62. The results suggest that reliance on online channels is no longer the preserve of younger users: around four in 10 investors in both groups report using social media for financial advice, and roughly three-quarters have acted on recommendations generated by AI engines.
What investors are using for advice
While social media usage for investment guidance sits at about 39% for younger investors and 38% for older ones, the survey highlights subtle differences in where each cohort seeks input. Older investors are slightly more likely to use online platforms or brokers for advice (57% versus 52%), whereas younger investors more often consult family, friends and colleagues (67% versus 60%).
That pattern points to a shift in how advice is consumed: older investors appear to be adopting the same digital channels as younger peers, but the younger cohort still leans more on interpersonal networks when making choices.
Asset allocations and sector preferences
Despite similar digital habits, allocations show notable divergences. Older investors reported higher exposure to cryptoassets (56% versus 53% among younger investors), commodities (61% versus 52%) and cash holdings (50% versus 46%). Equity and bond allocations were broadly comparable between the groups.
The mix suggests a barbell-style approach among older investors, combining higher-risk positions with cash or commodities as partial buffers. For wealth managers and advisers, that pattern underscores the need to consider clients’ total portfolio construction rather than making age-based assumptions about risk aversion.
Sector preferences also differ. Both cohorts list financial services, real estate and energy among their top holdings, but younger investors express stronger interest in technology (36% versus 32%), healthcare (26% versus 23%) and renewables (26% versus 24%). Older investors show higher allocations to traditional sectors such as energy (42% versus 38%), financial services (51% versus 48%) and mining (28% versus 26%).
eToro’s market analyst noted that younger investors, still early in their investment journeys, plan to diversify into a wider range of sectors, with renewables receiving the most near-term interest among under-35s. Older investors, by contrast, showed stronger near-term appetite for communications stocks.
Shared goals, different motivations
Despite their differences in holdings, both age groups share the same top three investment objectives: achieving financial independence, supplementing income and providing long-term security. The survey does show nuance around those goals. Older investors are more likely to cite beating inflation and supplementing income as motivations, while younger investors more often say they invest for enjoyment, an early retirement and to raise capital for future payments.
Activity levels in recent months indicate an overall increase in market participation: a larger share of younger investors reported increasing contributions to portfolios over the past three months (59% versus 55%) and plan to raise allocations in the next three months (68% versus 62%). A small minority in each group reduced holdings, with the release linking those decreases to recent geopolitical tensions in the region.
Industry and regulatory implications
The findings have several implications for market participants in the UAE. For brokerages and digital platforms, the narrowing digital divide means product design and communications should address a broader age range that can and will use AI-driven tools and social channels. Firms that assume older clients avoid digital advice risk missing demand for algorithmic and social features.
For asset managers and fund houses, the tilt among younger investors toward renewables, tech and healthcare aligns with secular growth and ESG-related capital flows. That demand could influence fund launches and marketing strategies, particularly as younger investors report plans to expand sector exposure in the near term.
Regulators and consumer protection bodies should also take note. High rates of AI adoption for investment recommendations raise questions about transparency, explainability and the appropriate oversight of algorithmic advice. Similarly, above-average crypto and commodity exposure among older investors highlights the importance of clear risk disclosures and suitability assessments, especially for clients nearing or in retirement.
Overall, the survey suggests a more nuanced generational story than conventional stereotypes imply. Age still shapes preferences, but digital behaviours and market engagement are converging, a trend that will shape product development, advice models and regulatory attention in the UAE capital markets.
Methodology note: The findings discussed here are based on eToro’s UAE Retail Investor Beat survey. The platform provided the data and highlighted trends across the two age cohorts; StocksBreaking did not independently verify underlying sample details or methodology.
