eToro launches UAE-Economy portfolio, giving users diversified exposure to Dubai and Abu Dhabi stocks
Abu Dhabi, United Arab Emirates –
Trading and investing platform, eToro, has announced the launch of its new UAE-Economy Smart Portfolio, designed to give retail investors around the world access to a diversified roster of companies listed on the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM).
George Naddaf, Managing Director of eToro MENA, 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.”
“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 invests in 20 leading UAE-listed companies across key sectors such as banking, real estate, energy, utilities, telecommunications and logistics. The portfolio is designed to give users diversified sector exposure with low correlation to Western markets. It is rebalanced yearly or on-demand, dependent on market conditions.
Each stock is selected based on an evaluation of their market capitalisation, liquidity, key financial ratios and analyst consensus ratings. The portfolio’s constituents deliver an average dividend yield of 3.75%, with certain stocks offering yields up to 7%, whereas the dividend yield of the S&P 500 is currently at 1.15%.1
The portfolio launches at a time when initiatives such as UAE Vision 2031 and Abu Dhabi Vision 2030 are accelerating economic growth and expanding the nation’s capital markets.
eToro’s range of Smart Portfolios offer long-term exposure to various market themes. They provide long-term investment solutions that offer diversified exposure. Initial investment starts from USD$500 and any investor can access tools and charts to track the portfolio’s performance, while eToro’s social feed will keep them up-to-date on developments in the sector.
