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Commodities have emerged as the most popular asset class among UAE retail investors, surpassing cryptocurrencies, according to the latest survey by eToro.

The fifth edition of the UAE Retail Investor Beat, based on responses from 1,000 investors, highlights a growing preference for traditional assets such as gold and oil, particularly amid ongoing geopolitical uncertainty.

Commodities Take the Lead

The survey found that 56% of UAE retail investors are now investing in commodities, up from 47% in August 2025. This marks the largest increase among all asset classes, pushing commodities ahead of cryptocurrencies, which remained steady at 54%.

Geopolitical tensions appear to be a key driver behind this shift. Around 80% of investors said they have adjusted or plan to adjust their portfolios, with 56% increasing exposure to precious metals and 43% investing more in energy commodities.

Rising Interest in Energy and Renewables

Sector allocations linked to commodities have also strengthened. Investment in the energy sector rose to 40% from 31%, while materials increased from 22% to 27%. Interest in renewable energy also climbed, with 25% of investors now allocating funds to the sector, up from 21%.

Notably, renewables were identified as the top sector investors plan to enter within the next three months, cited by 41% of respondents, reflecting a broader shift toward energy diversification.

George Naddaf, Managing Director at eToro (MENA), said UAE investors are increasingly responsive to macroeconomic conditions, actively repositioning portfolios to capitalise on market volatility. He noted that the trend aligns with a global shift toward real assets and traditional sectors.

Gold Remains the Preferred Commodity

Among commodity investors, nearly half allocate more than 20% of their portfolio to this asset class. Gold remains the most widely held commodity, with 88% of investors owning it, followed by oil (47%), silver (41%), and natural gas (29%).

Investors are divided on their motivation for holding gold, with equal numbers citing its role as a long-term store of value and expectations of further price increases.

Bullish Outlook for Oil and Gold

Investor sentiment remains strongly positive for the near term. According to the survey, 92% of respondents expect oil prices to rise over the next six months, while 84% anticipate an increase in gold prices.

A significant proportion of investors foresee substantial gains, with 46% expecting oil prices to surge by more than 15%, and 57% predicting gold could rise by over 10%.

Naddaf added that both gold and oil continue to hold strong cultural and economic significance in the UAE, with market sentiment supported by factors such as central bank activity in gold markets and supply dynamics affecting oil prices.

The findings underscore a broader shift in investor behaviour across the UAE, with increasing focus on stability, diversification, and tangible assets amid evolving global economic conditions.

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