Retail investing in the Gulf is going global, and it is happening on the phone. A Hong Kong based group’s app has passed one million users in Saudi Arabia and has now won a licence in the DIFC to reach investors across the GCC. Steven Chou, Chief Strategy Officer of VCGL, Chairman of both Sahm Capital and Sahm Financial Limited, and MFTA member, compares retail investors in Greater China and the Gulf and explains what Saudi investors are buying today. He also covers why Dubai was chosen as a regional base, why the Gulf time zone suits global trading, and how education is shaping the next generation of investors.
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Why Retail Investors in the Gulf Want Community, AI and Global Markets in One App
You spent 20 years in Asian markets and now work in the Gulf. How do retail investors in the two regions differ?
There are two perspectives. The first is the nature of the investor. By nature there is not much difference between retail individuals in Greater China and the Gulf, because both are Asia. Most retail investors are driven by market sentiment, and they only ask one or two questions: what to buy, and when to sell. The second is user behaviour. Retail investors in Greater China have faced a very mature market, with vehicles and tools available for decades, while investors here probably do not have that much on offer. There is also a key difference in information and data in Arabic. Most market news and data is English driven, so we have our own content team and our own localisation team to serve Arabic users in the region.
The app has passed one million users in Saudi Arabia. What are those investors buying?
We are actually past two million now, thanks to all the supporters. Most Saudi investors favour non oil sectors. Previously it was probably crypto or digital asset driven. Recently they have moved into AI, robotics, pharmaceuticals, even drones and semiconductors.
Earlier this year you won a licence in the DIFC. Why Dubai, and what does the licence let you do?
We are doing well in Saudi, serving Saudi citizens and residents. But when we look at the broader GCC, we believe the UAE's business environment, its friendly licensing and its banking infrastructure make us comfortable treating the UAE, especially Dubai and the DIFC, as our regional outpost from Saham KSA.
What do UAE retail investors want that is not on offer yet?
Most of the trading platforms you can reach in the UAE are dedicated to trading functions only. Within the same app we embed a community and an AI companion. For example, you buy a certain stock and you want to know what is going on afterwards and how other people see it. In the community you can interact with other users, and you can ask the AI within the app, where the answer comes not only from the mature external models but also from feedback from users internally. That gives you a one stop shopping experience in the app.
How strong is the demand among Gulf investors for global stocks?
The momentum remains very strong for global markets. When we first launched in Saudi two and a half years ago, the total number of accounts was less than 6 million. Two years later it has gone up to 7.6 million registered accounts. The appetite toward global markets is the same, and because of the global climate, investors have a strong demand for arbitrage or risk management against global markets.
Gulf investors keep asking for extended trading hours. Why does that matter?
The GCC is the perfect spot to participate in global markets because of the time zone. A lot of financial reports and statements are released after market hours, so with extended trading hours and the natural time zone of the Gulf, it is perfect to trade from the UAE and to react to global events in a timely way.
Five years from now, what does retail investment in the GCC look like?
I believe the users supporting us are happy with the service, not only the community and local content, but also the Saham Academy, a complete set of financial programmes and courses. We also donated a simulator to the Financial Academy, an official education institution hosted by the regulator, the CMA. It is paper trading, a simulator, and they are more and more keen to learn about global markets and financial tools.