No Safety Net? UAE Expats Turn To Investment Apps As Local Platform Boom Fills Pension Void For Thousands

The surge comes as expats, who make up nearly 90 per cent of the UAE’s population, seek alternatives to traditional wealth management in a country where state pension benefits are reserved for citizens and many discover too late they have no safety net for retirement.

One of the UAE’s most prominent digital investment platforms, SARWA, has seen significant growth in the number of users on its platform that currently stands at over 220,000, CEO Mark Chahwan told Arabian Business.

This shift in expat mentality mirrors a broader shift happening across the Gulf region: a surge in homegrown trading apps emerging to serve millions facing the prospect of retirement without pensions.

“When we started, a lot of the initial cohorts were more European and people from India that had greater knowledge about investing,” said Chahwan, who is also a co-founder of SARWA.

“But the more we grow, the more we see our demographics shift to what the UAE is, including a lot more diversity.”

Since securing the emirate’s first fintech license in 2017, SARWA has amassed a huge user base, underscoring the massive untapped demand for accessible investment tools among the UAE’s 11 million expatriate residents. The platform’s achievement of three consecutive profitable quarters signals a maturing market that’s attracting both users and investors.

The timing couldn’t be better. Regional markets are outperforming many global benchmarks, with the Dubai Financial Market Index surging more than 20 per cent this year alone. This bull run is adding momentum to a fintech revolution that’s reshaping how expatriates – who make up the majority of the UAE’s population – approach long-term financial planning.

Race for market share

The latest entrant to this increasingly crowded space is Al Ramz Corporation, a 25-year-old UAE financial institution that’s betting big on artificial intelligence and social trading features. The move represents a shift in how traditional financial players view the retail investment landscape.

“We saw an incredible opportunity to revolutionise the way everyday investors engage with the financial markets,” Haisam Odeimeh, GCEO Financial Services at Al Ramz, told Arabian Business. His firm is deliberately positioning itself against higher-risk trading models that have faced scrutiny in other markets.

The rush to capture market share is intensifying. Baraka, another UAE-born platform, has gained significant traction with its commission-free trading model. Saudi Arabia’s Wahed Invest is carving out a niche with Shariah-compliant investments, while the global platform eToro has established a strong regional presence.

Traditional banks aren’t standing idle. HSBC’s World Trader platform and Emirates NBD’s digital trading solutions are leveraging their established customer bases and regulatory expertise to compete with the newcomers. The competition reflects the size of the opportunity: the GCC fintech market is projected to reach $23.18 billion by 2032, growing at a compound annual rate of 16.5 per cent.

COVID-19 marked a watershed moment for digital investment in the Gulf. With lockdowns forcing people indoors, many turned to trading apps as both a source of income and financial education.

“The pandemic was a pivotal moment,” Chahwan recalled.

“We didn’t need to educate as much. People were all at home, had more time on their hands, and started reading up a lot more about investing.”

This surge in interest coincided with a broader push by Gulf governments to position their financial centres as global fintech hubs. The Dubai International Financial Centre (DIFC) saw a significant expansion in H1 2024 with the addition of 820 new companies, marking a 24 per cent increase compared to the same period last year. Specifically, the number of FinTech and Innovation firms grew from 811 to 1,081, accounting for a 33 per cent year-on-year increase.

The new platforms are racing to distinguish themselves through technology and features. Al Ramz is betting heavily on AI-driven robo-advisory services and social trading features, while steering clear of controversial products like CFDs (Contract for Difference) that have drawn regulatory scrutiny in other markets.

“We’ve deliberately chosen to reject structures that amplify risk,” Odeimeh explained.

“Instead, we’ve built a platform powered by tools like generative AI to equip investors with actionable insights.”

Lebanese expats turn to trading apps

An unexpected driver of growth has emerged from regional instability. Lebanese expatriates, many having lost faith in traditional banking following their home country’s financial crisis, are increasingly turning to digital investment platforms.

“There’s a lot of Lebanese clients that have had difficulties back home and with the banking system,” Chahwan said.

“That kind of worked itself into the importance of understanding every part of how your money is managed.”

The trend reflects a broader awakening among expatriates about the need for long-term financial planning. Unlike in many Western countries, where employer pensions and state benefits provide a retirement safety net, most UAE expatriates must create their own financial security.

The UAE’s financial regulators have responded to the sector’s rapid growth with updated frameworks. The Central Bank and Securities and Commodities Authority introduced new regulations last year that specifically addressed digital investment platforms in an effort to protect retail investors.

These regulations have given platforms the clarity needed to expand their services. Al Ramz is developing an ‘active mode’ feature that can execute transactions automatically, while SARWA continues to diversify its product offerings beyond its initial robo-advisory service.

“We’re not just building a platform,” said Odeimeh.

“We’re creating a movement to empower investors and set a new standard for financial inclusion and innovation.”

Industry experts predict further consolidation as platforms race to achieve scale. Some suggest that traditional financial institutions may look to acquire successful fintech platforms rather than build their own solutions from scratch.

For the UAE’s expatriate majority, these platforms represent more than just convenient trading tools – they might be their best chance at building long-term wealth in a region where traditional pension schemes remain out of reach. As these platforms mature, they’re not just changing how people invest; they’re fundamentally changing retirement planning for millions across the Gulf.