Online broker eToro has unveiled a new investment product, the UAE-Economy Smart Portfolio, giving retail investors access to a diversified basket of companies listed on the Abu Dhabi Securities Exchange and Dubai Financial Market. The minimum investment threshold is 500 USD.
Twenty companies across key economic sectors
George Naddaf, Managing Director of eToro MENA, explains the rationale behind the launch: the UAE is one of the world’s fastest-growing economies, supported by strong GDP growth, government reforms, and the development of non-oil sectors. Local companies – especially in banking, telecommunications and energy – are known for attractive dividend yields that often rank among the highest in emerging markets. The portfolio invests in 20 leading Emirati companies across sectors such as:
- Banking, real estate, energy and utilities
- Telecommunications and logistics
Each stock is selected based on market capitalization, liquidity, key financial metrics and analyst consensus ratings. The portfolio offers diversified sector exposure with low correlation to Western markets and is rebalanced annually or as needed depending on market conditions.
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Dividend yields three times higher than the S&P 500
The companies in the portfolio provide an average dividend yield of 3.75%, with some stocks offering yields of up to 7%. For comparison, the current dividend yield of the S&P 500 stands at 1.15%. The gap is substantial and attracts investors seeking stable cash flow from equity investments. Naddaf highlights that the Dubai and Abu Dhabi exchanges are rapidly becoming the leading capital markets in the Middle East, with increasing foreign investor participation and rising liquidity. The new portfolio expands access to these markets, enabling investors in the UAE and worldwide to take part in the long-term growth trajectory of the Emirati economy.
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The launch comes at a time when initiatives such as the UAE Vision 2031 and Abu Dhabi Vision 2030 are accelerating economic development and expanding national capital markets. Among those following trends in the latest Dubai real estate news, this portfolio draws particular attention because it includes major real estate companies that manage commercial and residential assets – markets where issues such as structuring a property lease effectively are essential to maximizing profitability.
A social investing platform with a low entry barrier
eToro’s Smart Portfolios offer long-term exposure to various market themes and provide diversified investment solutions. The minimum starting investment of 500 USD makes the product accessible to a wide range of retail investors. Every investor gains access to tools and charts to track portfolio performance, while eToro’s social feed keeps them updated on sector developments. The UAE-Economy Portfolio responds to the growing interest of global investors in the Emirati market – a market that demonstrates resilience amid geopolitical uncertainty and offers returns that outperform many developed economies. For those seeking an alternative to traditional Western indices, the product stands out as a diversification tool with growth potential and stable dividend payouts.
