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A surge of enthusiasm from the United Arab Emirates’ retail investors is bolstering domestic stock markets, signalling growing public confidence in the country’s economic trajectory. Data from the latest edition of the UAE Retail Investor Beat, conducted between 10 and 21 July 2025, shows that 85 per cent of people taking investment decisions are now allocated to UAE-listed equities, with 39 per cent invested in Abu Dhabi shares, 28 per cent in Dubai, and 18 per cent holding positions in both platforms.

Investor confidence appears grounded. Currently, 63 per cent report being “very confident” in the UAE’s economic performance, while a further 29 per cent describe themselves as “somewhat confident.” When looking ahead, 59 per cent express strong confidence in the long-term performance of locally listed stocks, with an additional 32 per cent somewhat confident. Investors remain optimistic about the near future: 48 per cent anticipate substantial gains over the next 12 months, while 34 per cent expect steady growth. On a regional scale, 58 per cent believe the Middle East will generate the highest returns over the next five years, ahead of the United States at 50 per cent.

Sectoral preferences reveal clear priorities. Real estate leads with 55 per cent of investors expressing confidence, followed by technology at 48 per cent, and both financial services and energy at 37 per cent each.

George Naddaf, managing director of eToro MENA, framed these findings in the context of market performance: the Dubai Financial Market and Abu Dhabi Securities Exchange are among the top-performing exchanges globally, outperforming the S&P 500 by a wide margin. He credits sustained earnings, robust macroeconomic conditions, and supportive government measures for underpinning investor sentiment and reinforcing preference for local opportunities.

Despite this supportive sentiment, geopolitical risks remain front of mind. Nine‑tenths of respondents expect tariffs and trade disputes to exert meaningful pressure on their portfolios over the next six months, and 89 per cent have either adjusted or intend to adjust investment strategies in response. More than half—53 per cent—are tilting further towards UAE equities, while 51 per cent are increasing exposure to commodities. Gold and precious metals are viewed as the most resilient asset class by 49 per cent of investors; cryptocurrency ranks second at 45 per cent and is already the most held class, with 54 per cent ownership.

Naddaf described this as a “disciplined, dual-track approach,” combining reinforcement in domestic equities with defensive hedges in commodities.

Capital commitment remains strong. Sixty‑five per cent of UAE retail investors have already stepped up contributions in past months, while 76 per cent anticipate further increases in the coming three months.

Berkshire Hathaway’s National Indemnity Company has lifted its stake in Mitsubishi Corporation to 10.23 %, up from 9.74 % earlier, signalling a reinforced commitment to Japan’s leading trading house. The investment follows similar moves in March across other sogo shosha, including Mitsui & Co.

The decision reflects Warren Buffett’s enduring confidence in Japanese megatraders, whose disciplined capital allocation, governance reforms, and investor-friendly policies align strongly with Berkshire’s investment philosophy. As Buffett admired in his annual letters, these firms’ governance improvements, such as stronger board oversight and enhanced transparency, have elevated their attractiveness globally.

Markets responded with optimism. Mitsubishi shares advanced approximately 1.8 %, while Mitsui and its peers—including Sumitomo, Itochu, and Marubeni—also rose, lifting the Nikkei 225. Notably, Berkshire’s growing yen‑denominated dividend income, estimated at $812 million, substantially exceeds its $135 million in interest costs—from its debt exposure—further underscoring the financial logic behind the move.

Buffett first entered these companies around 2019, building stakes across five major trading houses. At that time, the positions were modest—roughly 5 % each—and have been gradually expanded as corporate reform deepened. Last year, ownership in these firms reached as high as 9.8 %. At the annual shareholder meeting in Omaha, Buffett stressed his intention to hold these stakes “for many decades,” a sentiment shared by vice‑chairman Greg Abel.

Several strategic and structural factors underpin this move. Japanese trading houses are diversifying rapidly—expanding into renewable energy, logistics, tech, and sustainable infrastructure—which offers resilience against inflation and trade volatility. Their shareholder returns via dividends and share buybacks, combined with conservative executive pay, align with Berkshire’s preference for capital‑efficient businesses.

Buffett’s growing exposure coincides with Japan’s corporate governance revolution. Since former Prime Minister Abe’s reforms and the stewardship code, sogo shosha have improved transparency, board independence, and capital discipline—making them far more attractive to foreign investors.

Berkshire’s strategic calculation is also macro‑driven. In a year when the iShares MSCI Japan ETF has gained around 17 %, outperforming the S&P 500, the broader market trend reinforces the allure of Japanese equities.

Saudi Arabia’s non‑oil private sector sustained strong expansion in July, although growth eased compared with June. The Purchasing Managers’ Index, compiled by S&P Global for Riyad Bank, slipped to 56.3 from June’s 57.2, yet remained well above the 50‑point mark that separates expansion from contraction.

Domestic demand continued to underpin business activity, prompting firms to recruit aggressively. Employment surged again in July, marking another historic increase following June’s 14‑year high. Chief Economist Naif Al‑Ghaith commented that “the non‑oil economy remained on a solid growth track in July, supported by higher output, new business, and continued job creation”.

Despite this resilience, output growth moderated, registering its slowest pace since January 2022. Firms pointed to rising competition and reduced customer visits as key factors behind the slowdown. One of the more notable concerns was the first decline in new export orders in nine months, highlighting challenges in attracting foreign clients.

Cost pressures, while still elevated, showed a slight easing. Input price inflation decelerated marginally, though labour expenses remained steep amid efforts to retain staff through bonuses. Nevertheless, firms passed on some of this pressure to consumers, with output prices rising for a second consecutive month.

Looking back to June, the sector had posted particularly robust growth. The PMI rose to 57.2, driven by strong domestic demand, new project starts, and intensified marketing efforts. New orders reached a four‑month high, while hiring surged at its fastest pace since May 2011. Input costs rose sharply and were reflected in higher output prices, even as confidence among firms reached a two‑year high.

This strong performance aligns with broader economic diversification goals by boosting sectors beyond oil. In March, S&P upgraded Saudi Arabia’s sovereign credit rating to ‘A+’ from ‘A’, citing sustained progress under Vision 2030 and confidence in rising activity in construction, manufacturing, logistics, and mining. While the International Monetary Fund earlier revised down the country’s GDP forecast for 2025 to 3 percent, it acknowledged continued resilience in the non‑oil sector.

Regionally, the trends contributed to relative stability in the stock market. While shares in Saudi Arabia ended largely flat amid sectoral shifts, healthcare and energy gained traction, even as real estate, finance, and materials lagged behind. Firms operating across the region reported softer non‑oil demand signals, reinforcing cautious optimism among investors.

As Saudi Arabia navigates through post‑oil economic structures, the non‑oil sector stands out for its adaptability. Businesses continue to expand teams and absorb input challenges, yet face mounting pressure from market competition and weakened foreign demand. While optimism about future activity remains, it has notably softened to the lowest level since July 2024.

Infosys will acquire a 75 percent stake in Versent Group, the cloud‑focused digital transformation specialist wholly owned by Telstra, for A$233.3 million, in a joint venture aimed at accelerating artificial intelligence‑enabled cloud and digital services across Australia. The deal, positioning Infosys as majority operator with Telstra retaining a 25 percent interest, is expected to complete in the second half of fiscal year 2026, contingent on approval from Australia’s Foreign Investment Review Board and Competition and Consumer Commission.

Versent brings to the table its team of 650 engineers, advisors and strategists and deep expertise in serving large‑scale sectors such as finance, utilities, energy, education and government. Infosys plans to infuse this local engineering capability with its global strengths—particularly its AI suite including Infosys Topaz, cloud platform Infosys Cobalt, and cybersecurity services from The Missing Link—to deliver comprehensive digital transformation solutions across Australian enterprise and government clients.

The transaction sparked a positive market reaction. Infosys’s US‑listed shares climbed 1.6 percent to US$16.33, while shares traded in India leapt 2 percent to ₹1,449.90.

This JV marks a significant stride in Infosys’ global AI‑cloud strategy and broadens its footprint in Australia. For Telstra, the move aligns with its broader transformation ambitions, where leadership under CEO Vicki Brady is steering the business toward becoming more software‑centric and AI‑first. As part of this shift, Telstra has embraced extensive AI deployment—covering operations such as fault detection, customer support enhancement and efficiency gains—and introduced 21,000 Microsoft Copilot licences along with a dedicated data and AI academy for staff upskilling.

While Telstra has enacted workforce reductions—550 roles eliminated in its enterprise division—company executives emphasise these changes result from structural realignment, not AI, and promise support for affected employees.

Australia’s Santos revealed that a takeover proposal valued at US $18.7 billion, spearheaded by a consortium under the Abu Dhabi National Oil Company, will not be concluded by the extended 22 August deadline and now faces a delay of at least four weeks. The investment group, including ADNOC’s XRG arm, Abu Dhabi Development Holding Company and private equity firm Carlyle, cited the need to finalise regulatory and due diligence clearances across multiple jurisdictions—including Australia, Papua New Guinea and the United States—before completing a binding scheme implementation agreement.

Santos confirmed that negotiations remain “collaborative” yet incomplete, with both parties still to secure agreement on acceptable terms for a binding SIA. Given the outstanding conditions, signing before the end of the week appears unlikely.

The implications for Santos’ investors were swift: its shares slid up to 3.5 per cent, reaching A$7.68—a five-week low—marking it as one of the ASX 200’s most notable underperformers.

The bid, if executed, would become Australia’s largest-ever all-cash corporate takeover. Santos’ enterprise value, factoring in net debt, stands at approximately A$36.4 billion, signalling a major transaction in the energy sector.

Industry analysts emphasise that regulatory approvals remain the most significant obstacles. Australia’s Foreign Investment Review Board, in particular, presents a critical test given the strategic sensitivity of energy infrastructure. Papuan New Guinea and U. S. authorities also must grant clearance.

James Hood of Regal Funds Management expressed palpable market unease, observing that the share price response reflects “increased risk and uncertainty.” Kaushal Ramesh from Rystad Energy characterised the execution of a deal of this magnitude as “never going to be an easy transaction”, especially with national energy security and regulatory scrutiny in play. Another investor, Jamie Hannah of Van Eck, reiterated that the key challenge isn’t procedural but regulatory—from the FIRB in Australia.

As a result of the delay, Santos will release its interim earnings on 25 August, instead of the previously planned 20 August.

Interest in the Pikka oil project in Alaska—expected to commence production mid-2026—adds further strategic weight to Santos’ asset base and may influence regulatory and investor perspectives on the transaction.

Accumulated losses at Abu Dhabi-listed Invest Bank stand at AED 1.653 billion, equivalent to 51.6 per cent of its paid-up capital, slightly down from AED 1.69 billion reported in March 2025. The losses originate from legacy impairments dating back to the first quarter of 2018 and continue to erode the lender’s financial position.

The bank has launched efforts to stabilise its financial health by de-risking its balance sheet. At the same time, the Government of Sharjah, as the major shareholder, has injected capital aimed at bolstering liquidity—a strategic move that aims to shore up the bank’s resilience.

Looking back, Invest Bank reported more severe accumulated losses in earlier years. At the end of 2019, those losses amounted to AED 2.21 billion, roughly 70 per cent of capital—a stark contrast to the current levels. By the third quarter of 2022, the accumulated losses were AED 2.16 billion, or about 68.2 per cent of capital, largely due to persistent non-performing loans. In response, the bank implemented remediation measures, writing off AED 2.10 billion in accumulated losses by September 2023, bringing the ratio down to approximately 20 per cent of capital. That period also saw a significant share capital increase.

Combined, these figures reveal a notable, though gradual, trajectory of improvement—from 70 per cent of capital in 2019, easing to 20 per cent by late 2023, before creeping back up to 51.6 per cent in the year through March 2025.

The strategic role of the Government of Sharjah remains pivotal. Following its initial 50.07 per cent stake in 2019—acquired via a substantial capital injection—the emirate later transferred roughly 20.48 per cent of its shares to the Sharjah Social Security Fund at the end of December 2024, retaining around 70.06 per cent ownership. This shareholder reorganisation suggests an internal shift in governance structure, while financial backing continues.

Invest Bank is navigating a complex path of recovery. Its efforts to de-risk and recapitalise, combined with consistent shareholder support, offer a cautious optimism. But the level of accumulated losses still significantly exceeds capital, and ongoing remediation will be critical to restore full financial stability.

Singapore has firmly established itself at the forefront of global digital finance innovation, particularly in the realm of tokenized assets. The city-state’s embrace of blockchain technology is reshaping the investment landscape, enabling quicker, more accessible, and transparent transactions. As financial institutions, startups, and regulatory bodies collaborate, Singapore is positioning itself as a pivotal player in the tokenization of assets.

Tokenization, the process of converting assets into digital tokens on a blockchain, has garnered significant attention for its potential to revolutionize various sectors, from real estate to commodities. In Singapore, tokenized finance is progressing from pilot projects to full-scale adoption, driving the country’s financial ecosystem towards greater efficiency and market accessibility.

One of the main driving forces behind Singapore’s success in this area is its robust regulatory framework. The Monetary Authority of Singapore has been instrumental in fostering innovation by providing a clear set of rules that encourage experimentation while maintaining investor protection. This regulatory clarity has given businesses the confidence to explore tokenized finance solutions without fear of running afoul of the law.

The growth of blockchain technology in Singapore has been swift, particularly in sectors like real estate, where tokenized property shares allow for fractional ownership. Investors no longer need substantial capital to gain exposure to high-value properties. Instead, they can purchase smaller stakes in tokenized properties, broadening the pool of potential investors and promoting liquidity in traditionally illiquid markets.

Equally noteworthy is the role of Singapore’s thriving fintech sector. The city has seen a surge in startups developing blockchain-based solutions, ranging from platforms for trading tokenized securities to services that facilitate the creation and management of digital assets. This startup ecosystem is supported by venture capital, which has flooded the market with investment, accelerating the development of blockchain applications in finance.

Global players are also taking note of Singapore’s advancements in tokenization. International banks and financial institutions are increasingly setting up operations in the city, attracted by the favourable regulatory environment and the city’s growing reputation as a hub for blockchain and digital asset innovation. For instance, HSBC and Standard Chartered have partnered with local firms to explore tokenized securities and digital asset offerings, cementing Singapore’s status as a global leader in this space.

The introduction of projects like Project Ubin has been pivotal in demonstrating the benefits of blockchain technology within the financial services sector. Initiated by the MAS, Project Ubin explored the use of blockchain for the clearing and settlement of payments, offering proof of concept for tokenized digital currencies. This project not only advanced the understanding of blockchain within financial markets but also helped to strengthen Singapore’s position as a blockchain innovation leader.

The government’s commitment to blockchain and tokenization goes beyond regulation. Singapore has also established itself as a key player in blockchain research and development, with several academic institutions focusing on the technology’s financial applications. Collaborations between private companies and research bodies ensure that Singapore stays at the cutting edge of blockchain development.

Tokenization also promises to democratize finance, giving more people access to investment opportunities that were once restricted to the wealthy. By lowering the barriers to entry, tokenized assets open up new possibilities for retail investors, who can now invest in a wide range of tokenized products with much smaller capital commitments.

Despite these advancements, challenges remain. As tokenization grows, concerns about security, compliance, and the stability of the underlying blockchain systems need to be addressed. Singapore’s regulatory bodies are aware of these risks and continue to refine regulations to ensure that tokenized markets remain secure and trustworthy. The development of more sophisticated security protocols and smart contract auditing tools is expected to further strengthen the ecosystem.

Michigan’s State Retirement System has significantly increased its investment in Bitcoin, demonstrating confidence in the cryptocurrency’s long-term potential. The fund has tripled its exposure to Bitcoin through the ARK 21Shares Bitcoin ETF, a move that reflects growing interest from institutional investors in digital assets. This increase comes as Bitcoin continues to see heightened attention from both retail and institutional investors, positioning it as a key player in the evolving financial landscape.

The Michigan State Pension Fund, managed by the Michigan Department of Treasury, is one of the largest public pension funds in the United States, with assets exceeding $90 billion. Its decision to increase Bitcoin holdings through the ARK 21Shares Bitcoin ETF is seen as part of a broader trend in which pension funds, endowments, and other institutional investors have begun diversifying their portfolios by including digital assets.

The ARK 21Shares Bitcoin ETF, which is designed to provide exposure to Bitcoin without requiring investors to directly hold the cryptocurrency, has gained traction among institutional investors for its simplicity and regulatory compliance. This ETF allows for Bitcoin exposure in a traditional investment vehicle, offering an avenue for pension funds that may otherwise be restricted from investing directly in cryptocurrencies.

Cryptocurrency has become an increasingly important asset class for institutional investors. A growing number of asset managers have begun to see Bitcoin and other digital currencies not just as speculative investments, but as a hedge against inflation and currency devaluation. Bitcoin’s reputation as “digital gold” has been reinforced by its performance in the face of economic uncertainty, especially in comparison to traditional assets like equities and bonds.

The decision to expand Bitcoin holdings is also linked to the broader trend of pension funds seeking higher returns to meet long-term obligations. With global interest rates remaining low and traditional investments yielding modest returns, pension funds are under growing pressure to diversify their portfolios and consider alternative assets. Bitcoin, with its potential for high returns despite its volatility, has become a prominent choice.

Experts suggest that institutional adoption of Bitcoin is still in its early stages, but the trend is accelerating. Michigan’s State Pension Fund’s move to increase its Bitcoin exposure follows similar actions by other major pension funds and financial institutions. The California Public Employees’ Retirement System, the largest public pension fund in the U. S., has also explored Bitcoin exposure, although in a more cautious manner.

This shift towards digital assets by public pension funds is not without controversy. Some critics argue that the volatile nature of Bitcoin and other cryptocurrencies makes them a risky investment for pension funds, which are tasked with managing the retirement savings of millions of individuals. Concerns about the regulatory landscape and the potential for sudden price swings have prompted calls for greater caution in incorporating cryptocurrencies into institutional portfolios.

However, proponents of the move argue that Bitcoin’s resilience and increasing institutional support make it a sound long-term investment. As blockchain technology continues to mature and the regulatory environment around digital assets evolves, many believe that the risks associated with Bitcoin will be mitigated over time. Moreover, the increasing mainstream adoption of cryptocurrencies by corporations and financial institutions is seen as a positive indicator of their future potential.

The ARK 21Shares Bitcoin ETF itself has become a widely-followed vehicle for gaining Bitcoin exposure. Managed by ARK Invest, a firm known for its focus on disruptive innovation, the ETF holds Bitcoin in a secure manner and allows investors to gain exposure without directly purchasing or storing the cryptocurrency. The ETF has drawn interest from various institutional investors, including pension funds, hedge funds, and family offices, all seeking a regulated and secure method of gaining exposure to the world of digital assets.

Despite the benefits, the decision to triple Bitcoin exposure has sparked some concerns about diversification within the Michigan State Retirement System’s broader portfolio. Critics warn that an overconcentration in any single asset, particularly one as volatile as Bitcoin, could undermine the stability of the pension fund. While Bitcoin has demonstrated substantial returns in recent years, its volatility has also led to significant drawdowns, making it a risky bet for long-term investors.

The pension system’s commitment to Bitcoin, however, signals the growing legitimisation of digital currencies in the traditional financial world. Michigan’s pension fund is not alone in recognising Bitcoin’s potential as part of a diversified portfolio, as other states and private institutions have made similar moves to explore digital assets.