UAE Investor Buys AI and Cryptocurrency at a Discount During US-Iran Conflict

BlockBeats News, April 16th. According to Cointelegraph, during the US-Iran conflict, UAE investors chose to buy the dip in AI and digital assets instead of overall deleveraging. Data from eToro shows that UAE users increased their holdings of several software and AI infrastructure stocks that experienced significant price pullbacks in the first quarter. eToro market analyst Josh Gilbert stated that UAE investor behavior was driven by long-term themes rather than risk-off sentiment, with the most notable signal appearing in the AI infrastructure and software sector—ServiceNow (+125%), Super Micro Computer (+65%), Adobe (+54%), and Oracle (+38%) all seeing significant increases in holdings amid market pressure. On the cryptocurrency side, Strategy Inc. remains the eighth highest-held stock by UAE investors, demonstrating a continued allocation to crypto-related assets.

On April 13th, Deutsche Bank's report pointed out that this conflict is more likely to strengthen rather than weaken the region's demand for AI, cybersecurity, and sovereign digital infrastructure. However, citing reports, it was mentioned that Amazon Web Services data centers in the UAE and Bahrain have been attacked, and the 1GW Stargate Park project in Abu Dhabi is also under threat. The report also noted that sovereign wealth funds in the Gulf region collectively manage assets of around $5 trillion by 2025, with Abu Dhabi-related entities being one of the most active funding sources in the global AI sector.

Local crypto companies in Dubai continue to operate normally. Ben El-Baz, Managing Director of HashKey MENA, told Cointelegraph that their business "remains operational overall" thanks to cloud-based trading and custody systems; Binance also confirmed that the majority of its employees chose to stay, but the Token2049 event in Dubai has been postponed to 2027. The Dubai Virtual Asset Regulatory Authority (VARA) is advancing its activity-based regulatory framework. Sean McHugh, VARA's Head of Market Integrity, stated that during times of pressure, serious market participants seek the "clearest" regulatory environment, rather than the "most lenient" regulatory jurisdiction.