eToro launches UAE-Economy portfolio, giving users diversified exposure to Dubai and Abu Dhabi stocks

Trading and investing platform, eToro, has announced the launch of its new UAE-Economy Smart Portfolio. This new offering is designed to provide retail investors worldwide with access to a diversified selection of companies listed on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM).

George Naddaf, Managing Director of eToro MENA, commented on the launch, stating, "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 further added, "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."

Portfolio Overview and Investment Strategy

The UAE-Economy Smart Portfolio invests in 20 prominent UAE-listed companies spanning key sectors such as banking, real estate, energy, utilities, telecommunications, and logistics. The portfolio aims to offer users diversified sector exposure with low correlation to Western markets. It undergoes annual rebalancing or is adjusted on-demand, depending on prevailing market conditions.

Each stock within the portfolio is selected based on an evaluation of its market capitalization, liquidity, key financial ratios, and analyst consensus ratings. The portfolio's constituents collectively deliver an average dividend yield of 3.75%, with certain stocks offering yields as high as 7%. This contrasts with the S&P 500's current dividend yield of 1.15%.

The launch of this portfolio coincides with initiatives like UAE Vision 2031 and Abu Dhabi Vision 2030, which are actively accelerating economic growth and expanding the nation’s capital markets.

eToro Smart Portfolios Explained

eToro's range of Smart Portfolios provides long-term exposure to various market themes, serving as long-term investment solutions that offer diversified exposure. The initial investment for this portfolio starts from USD$500. Investors have access to tools and charts to track the portfolio's performance, and eToro's social feed provides updates on sector developments.

About eToro

eToro is a trading and investing platform dedicated to empowering individuals to invest, share, and learn. Founded in 2007 with the vision of making trading and investing simple and transparent for everyone, eToro now boasts over 40 million registered users across 75 countries. The platform emphasizes the power of shared knowledge, believing that collective investment can lead to greater success. eToro has developed a collaborative investment community offering tools to enhance users' knowledge and wealth. Users can engage with a variety of traditional and innovative assets, choosing to trade directly, invest in a portfolio, or copy other investors. For the latest news, users can visit eToro's media center.