Most investors in the UAE are betting on artificial intelligence (AI) to deliver substantial returns, according to a new survey.

Nearly three in four (71%) of retail investors in the Emirates hold stocks in businesses that are engaged in AI development, the study, conducted by trading and investment firm eToro, showed.

During the first quarter of the year, the platform found that AI stocks were the most popular among UAE investors. It said that companies like NVIDIA, Taiwan Semiconductor, Advanced Micro Devices, Adobe, Intel and Microsoft featured as top risers among UAE investors.

“The increased investment in these companies is indicative of investor confidence in the AI sector’s continued growth and ability to offer substantial returns in the long term,” said Ben Laidler, Global Markets Strategist at eToro, which has presence in the US, UK, Australia, Cyprus and Israel.

“This also aligns with the UAE’s efforts to position itself as a hub for technology and innovation.”

AI technology in investing

Investors are not just betting on AI, they tend to use the same technology to manage their funds. About 39% of UAE investors said they are already using AI tools such as ChatGPT to select or adjust their investments.

The trend is evident among millennials, with nearly half (40%) of 25 to 44-year-olds saying they are utilising AI technology. They are closely followed by Baby Boomers and Gen X investors, at 39% and 38%, respectively. For Gen Z investors, the proportion is 33%.

(Writing by Cleofe Maceda; editing by Seban Scaria)