Dubai,August 2024 – A majority of UAE retail investors (67%) express high levels of satisfaction with the financial education resources currently available to them, according to new data from trading and investing platform eToro. However, a desire for more comprehensive financial education has emerged, with UAE retail investors expecting financial institutions to take the lead.
In the survey of 1,000 UAE retail investors, nearly half (47%) said that they expect financial entities such as banks and investment platforms to take the lead on financial education. In comparison, 45% feel it is the individual’s responsibility whilst others believe it lies with universities (41%), schools (32%), the media (31%), and family (30%).
The data also underscored a significant gap in financial education during schooling years, with a considerable 87% of respondents expressing a wish that they had received financial education in school, pointing to a perceived shortfall in early financial literacy.
Currently, when it comes to gathering information for investment decisions, social media platforms are at the forefront, with 40% of respondents using them as a primary source. This is followed by Google searches (34%) and financial courses (33%). Personal recommendations from friends and family also play a significant role, with 33% of investors relying on them.
“The UAE’s rapid economic growth has created a dynamic environment for wealth generation, and having a well-informed investor base is crucial for sustaining this momentum. The preference on social media platforms for investment information reflects a preference for accessible and diverse sources, but it also underscores the necessity for financial entities to provide more relatable and accessible educational resources accessible to all,” explained Jason Hughes, Senior Executive Officer at eToro Middle East.
Aligning investment goals and strategies through education:
It is perhaps not surprising that investors are seeking more financial education given their relatively limited time investing, with the majority of UAE retail investors (69%) having invested for five years or less.
The survey also found a discrepancy between the investment goals and behaviors of UAE retail investors. While the primary goals for investing among UAE retail investors include achieving financial independence (40%), providing long-term security (37%), generating capital for future expenses such as mortgages and children’s schooling (27%), and outperforming savings accounts (27%), their investment horizon tends to be short-term. Whilst the majority hold investments for years (35%), a significant (33%) number of investors say they only hold assets for a matter of months, weeks (22%), or days (7%), with less than 3% holding investments for at least a decade.
“It is clear from our findings that UAE retail investors have ambitious long-term financial objectives. However, our data reveals a need to help retail investors better align their investment strategies and timeframes with their goals. Financial institutions have a unique opportunity to lead the charge in equipping investors with the tools and knowledge they need to make informed decisions. This is not just about immediate returns, but about fostering a culture of continuous learning and financial empowerment that aligns with the UAE’s ambitious growth trajectory,” added Jason Hughes.
“In line with our mission to empower people to grow their knowledge and wealth as part of a community of investors, we established the eToro Academy, a free platform available in 10 languages including English and Arabic,, offering timely and accessible financial content. We believe there is power in shared knowledge, which is why we offer a multitude of social features, including a live feed where users can share their insights and a free demo account where they can practice their strategies. We aim to make financial education available to all, supporting UAE retail investors in achieving their investment goals through our comprehensive and user-friendly resources.”
The survey, commissioned by the trading and investing platform eToro, sampled 1,000 retail investors residing in the UAE. The survey was conducted from 4 April – 9 April 2024 and carried out by research company Appinio. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment or equivalent. They did not need to be eToro users.
About eToro:
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