As tensions rise in the Middle East, investors in the United Arab Emirates (UAE) have moved to selectively buy AI and technology stocks, focusing on specific names. Rather than reducing overall market risk, a clear trend emerged of rebalancing portfolios while maintaining conviction in long-term growth themes.

Cointelegraph, a blockchain-focused outlet, reported on April 16 that the latest data released by eToro showed UAE investors increased their holdings of software and AI infrastructure-related stocks that fell sharply in the first quarter. Josh Gilbert (조시 길버트), a market analyst at eToro, said, "UAE investors became more selective about what risks they were willing to take rather than avoiding risk." He added, "Investment decisions were driven by long-term themes rather than short-term volatility."

By stock, the holding increase rate was highest for ServiceNow at 125 percent. Buying was also confirmed across major AI and cloud-related companies including Super Micro Computer at 65 percent, Adobe at 54 percent and Oracle at 38 percent.

Exposure to crypto-related assets also remained. Gilbert said shares of Strategy, known as a company that holds bitcoin (BTC), were still among the top holdings. That shows an indirect exposure strategy is being maintained, including related stocks as well as direct crypto investment.

This investment behaviour is drawing attention because it has appeared amid military tensions with Iran. Deutsche Bank said in a recent report that the clash was more likely to strengthen, rather than weaken, demand for AI, cybersecurity and digital infrastructure in the Middle East region.

Short-term risks remain. The burden has increased for building data centres, logistics and cross-border technology infrastructure, and rising oil price volatility was also cited as a factor that could affect tech stock valuations. Reports said Amazon Web Services (AWS) data centres in the UAE and Bahrain were attacked, and security concerns were also raised around the 1-gigawatt (GW) Stargate project being pursued in Abu Dhabi.

Even so, the local digital asset ecosystem has remained relatively stable. The operating environment centred on Dubai continued without major disruption, and reliance on physical infrastructure was also assessed as low thanks to cloud-based trading and custody systems. Global exchange Binance also continued normal operations. The company provided temporary relocation options to some employees as a preventive measure, but most staff were reported to have remained locally. The large event Token2049 was postponed.

The regulatory environment also did not waver. Dubai's Virtual Assets Regulatory Authority (VARA) maintained and expanded its activity-based regulatory framework amid the turmoil, and additionally presented token issuance guidelines and rules for crypto derivatives. Sean McHugh (숀 맥휴), VARA's head of market assurance, said, "In times of market instability, investors look for clarity rather than places where regulation is lax."

Ultimately, the UAE market appears to be maintaining a long-term investment direction centred on AI and digital assets despite geopolitical tensions. Investors adjusted portfolios within tech stocks while keeping core exposure, and companies and regulators continued operations and institutional preparations to support market stability.