The trading and investing platform eToro has launched its new UAE-Economy Smart Portfolio, where retail investors all over the world have direct exposure to the top firms listed on the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM).
Managing Director of eToro MENA, George Naddaf, said, “The UAE is one of the fastest-expanding economies in the world, supported by strong GDP growth, government reform, and growing non-oil sectors. Local companies, particularly in banking, telecoms, and energy, are known for their attractive dividend yields, which are often among the highest in emerging markets.”
He stated that “Dubai’s and Abu Dhabi’s exchanges are quickly becoming leading capital markets in the Middle East with increased foreign participation and growing liquidity. This portfolio will broaden access to these markets, enabling investors in the UAE and around the world to participate in the UAE economy’s long-term growth trajectory.”
The portfolio consists of 20 20 UAE-listed companies across sectors such as banking, real estate, energy, utilities, telecommunications, and logistics.
The portfolio is intended to provide diversification of sector exposure with low correlation to the Western market, and is rebalanced either annually or at the request of the market, based on market conditions.
Therefore, the stocks are chosen using market capitalization, liquidity, financial ratios, and analyst consensus ratings. The portfolio has an average dividend yield of 3.75 percent, with selected constituents having a maximum dividend yield of 7 percent, in contrast to the current dividend yield of the S&P 500 of 1.15 percent.
The introduction is aligned with national policies like the UAE Vision 2031 and the Abu Dhabi Vision 2030, which are both driving economic growth and enhancing capital markets within the country.
The Smart Portfolios of eToro are intended to offer diversified investment solutions and long-term thematic exposure.
The UAE-Economy Smart Portfolio can be available starting from $500, with investors able to monitor performance through analytical tools and charts; therefore, eToro’s social feed provides updates on sector developments.
