While 67 per cent of UAE retail investors are currently satisfied with the financial education resources available to them, according to a new study by trading and investing platform eToro, a desire for more comprehensive financial education has emerged.
In a survey of 1,000 UAE retail investors, 47 per cent expect financial entities such as banks and investment platforms to take the lead on financial education. However, 45 per cent feel it is the individual’s responsibility whilst others believe it lies with universities (41 per cent), schools (32 per cent), the media (31 per cent), and family (30 per cent).
The data also revealed that 87 per cent of respondents expressed a wish that they had received financial education in school, pointing to a perceived shortfall in early financial literacy.
Currently, when it comes to gathering information for investment decisions, social media platforms are at the forefront, with 40 per cent of respondents using them as a primary source. Google searches (34 per cent) and financial courses (33 per cent) followed. Personal recommendations from friends and family also play a significant role, with 33 per cent of investors relying on them.
“The UAE’s rapid economic growth has created a dynamic environment for wealth generation, and having a well-informed investor base is crucial for sustaining this momentum,” Jason Hughes, senior executive officer at eToro Middle East. “The preference on social media platforms for investment information reflects a preference for accessible and diverse sources, but it also underscores the necessity for financial entities to provide more relatable and accessible educational resources accessible to all.”
A ‘unique opportunity’ for financial institutions
According to the eToro survey, UAE retail investors are hoping to achieve financial independence (40 per cent), provide long-term security (37 per cent), generate capital for future expenses such as mortgages and schooling (27 per cent), and outperform savings accounts (27 per cent).
While the majority hold investments for years (35 per cent), a significant (33 per cent) number of investors say they only hold assets for a matter of months, weeks (22 per cent), or days (seven per cent), with less than three per cent holding investments for at least a decade.
Jason Hughes, senior executive officer at eToro Middle East
Hughes added: “It is clear from our findings that UAE retail investors have ambitious long-term financial objectives. However, our data reveals a need to help retail investors better align their investment strategies and timeframes with their goals. Financial institutions have a unique opportunity to lead the charge in equipping investors with the tools and knowledge they need to make informed decisions. This is not just about immediate returns, but about fostering a culture of continuous learning and financial empowerment that aligns with the UAE’s ambitious growth trajectory.
“In line with our mission to empower people to grow their knowledge and wealth as part of a community of investors, we established the eToro Academy, a free platform available in 10 languages including English and Arabic, offering timely and accessible financial content. We aim to make financial education available to all, supporting UAE retail investors in achieving their investment goals through our comprehensive and user-friendly resources.”
eToro explained that many investors are seeking more financial education given their relatively limited time investing, with the majority of UAE retail investors (69 per cent) having invested for five years or less.
The post UAE Retail Investors Split on Who Harbours Financial Education Responsibility, eToro Reveals appeared first on The Fintech Times.
