Retail investment and preparing for retirement is gaining traction in the Middle East. For Fredrik Davéus, CEO and co-founder of Kidbrooke, this isn’t just a simple market trend, but instead it is a “structural shift.”
He explained, “You have a young, digitally native population, strong economic growth in key hubs like the UAE and Saudi Arabia and increasing regulatory support for broader market participation. Combine that with high mobile penetration and financial inclusion initiatives, and it creates the perfect conditions for retail investing to accelerate.”
With the proliferation of digital finance platforms and WealthTech providers, it has been easier than ever to get involved with financial markets. This has created a big market for providers to offer services to eager clients, and the Middle East is a rising opportunity. The GCC digital neobrokerage apps market was valued at $1.2bn in 2024, according to a report from Ken Research.
Not only has there been greater access to investing platforms, but governments in the region have also looked to encourage people to place more attention on their financial security. For instance, Saudi Arabia’s Vision 2030 is aiming to create a thriving economy. Part of this includes transforming its market, such as diversifying from oil trade dependency and opening the Tadawul to foreign investments. But another core aspect of the initiative is to improve financial inclusion and financial literacy across the nation.
Similarly, the UAE is also making changes to its wealth management sector. Late last year, the country launched a national financial inclusion strategy. The National Financial Inclusion Strategy 2026-2030 has 12 core pillars, such as developing products aimed at women, youth, and people with disabilities and providing universal financial accounts to residents. Elsewhere, in 2022, the UAE also made a major shakeup to its pensions landscape. It introduced a new voluntary pension that replaced the end-of-service indemnities (ESOIs). Under the ESOIs, private sector employees would receive a lump sum payout when they left, based on how many years they worked. The new pensions allow workers to make contributions into regulated funds.
All of this is part of a growing mindset shift. Davéus said, “But beyond demographics and technology, there’s a mindset shift happening too. Investors across the region are becoming more proactive about wealth creation and long-term planning. Historically, capital allocation may have been concentrated in real estate or bank deposits. Today, there’s a growing appetite to participate directly in capital markets and diversified investment products. Access and awareness have improved, and now the expectation is improving too; retail investors want clarity, transparency and control.”
As the retail investing continues to gain traction in the market, Davéus believes WealthTech will define if this growth becomes sustainable. He added, “Although technology can democratise access, the real value lies in embedding analytics, personalisation and clear risk communication into the experience. Investors need to understand what they own, why they own it, and what risk they’re taking.”
Challenges entering the market
With the rising market demand for investing, it is becoming an appealing market for WealthTech companies to launch or for established international players to expand into. However, there are bound to be some challenges getting into the market.
When entering the market, it is important to understand the differences to Western markets. The region has its own behavioural and cultural dynamics, Davéus noted. “Family structures and intergenerational wealth stewardship play a much stronger role in financial decision-making. Investment goals are often collective rather than purely individual. That changes how products should be framed and how performance and risk are communicated.”
While family structures remain central, the investor base is also younger and digitally fluent. While this creates a big opportunity, it also carries a lot of responsibility as in many cases they are less historically exposed to capital markets than Western counterparts, Davéus explained.
But when it comes to entering the market, Davéus believes trust will be the biggest hurdle to overcome. He said, “Retail investors entering markets for the first time need clarity. If platforms feel opaque, overly complex or overly aggressive in pushing products, trust erodes quickly. Firms need to focus on explainability.”
One of the best ways to support that trust will be through leveraging explainable analytics and connecting data to decision-making in a manner that builds confidence, he explained. By helping investors understand volatility in context and how decisions can help shape long-term goals, they will be able to behave more rationally. “That’s good for both clients and good for firms.”
WealthTech will also empower greater personalisation at scale. Behavioural insights, goal modelling and adaptive guidance all allow firms to better meet the needs of customers and foster the trusted relationship.
Some of the other challenges they will face include the fragmentation of regulations. For firms that want to enter multiple markets, scaling across the region would need strong governance, compliance discipline and flexibility in product design to meet the specific needs of each country.
Finally, Davéus emphasised the importance of localisation. He said, “Localisation also matters. You cannot simply take a western product set and expect it to resonate. Asset preferences, cultural context and language nuance all matter.”
When looking to enter the market, it is important to understand what types of products are going to be the most popular. Davéus believes that local equities and regional ETFs will continue to gain traction, especially as exchanges deepen liquidity and broaden sector representation.
Another staple will always be Sharia-compliant investment vehicles. “Islamic finance principles are foundational in many parts of the region. Hence, platforms that integrate compliant options seamlessly will see strong engagement.”
Finally, Davéus is also seeing a rise in appetite for alternative assets and digital assets, particularly in more sophisticated segments. He added, “But long-term, the most successful offerings will be about goal alignment. Investors increasingly want to understand how assets connect to outcomes, not just returns in isolation.”
On a final note, “Ultimately, the opportunity in the Middle East is enormous. But firms will need to translate complexity into clarity, combine digital efficiency with trust, and build long-term financial capability across a new generation of retail investors.”
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