Franklin Templeton, one of the world’s leading asset management firms, has announced that the UAE’s economy is expected to maintain strong momentum into 2025, projecting GDP growth of around 4 – 5%.
In an exclusive comment, Ammar Mehta, Head of Individual Investor Services for the Gulf region and Eastern Mediterranean and Africa at Franklin Templeton, expressed optimism about the UAE’s future economic outlook. This optimism is largely supported by significant government investments in key growth drivers.
Mehta noted that the oil sector is seeing renewed spending on exploration and production as part of plans to expand production capacity. Meanwhile, the tourism sector continues to perform exceptionally well, with Dubai and Ras Al Khaimah recording record visitor numbers. He added that the UAE aims to solidify its position in the artificial intelligence landscape through strategic partnerships and national infrastructure investments. These trends collectively enhance the UAE’s status as a resilient and diverse economy driven by various growth sectors.
Expansion of feeder funds
Mehta highlighted that the UAE made significant strides last year in developing its financial sector with the launch of seven feeder funds in the Dubai International Financial Centre by Franklin Templeton. These funds enable individual investors to access global investment strategies through locally licensed platforms, responding to legislative and regulatory changes initiated by the Securities and Commodities Authority in collaboration with the Dubai Financial Services Authority and the Financial Services Regulatory Authority in the Abu Dhabi Global Market.
He continued, stating that feeder funds are a type of investment fund that pools local investors’ capital to invest in a master fund, which is typically registered in global financial centers like Luxembourg or Ireland. This structure allows investors to participate in major global strategies and funds while benefiting from transparency, oversight, and investor protection through a local gateway.
Mehta explained that the launch of the seven funds last year aimed to bridge the gap between global investment opportunities and local investors’ needs. He noted that recent regulatory adjustments have streamlined licensing and registration processes, enhancing the sector’s dynamics and increasing the competitiveness of local asset managers.
He further remarked that the success of the initiative in its first year is attributable to several factors, notably trust, simplicity, and outstanding performance. The platforms have prioritized providing a clear and flexible investment experience with transparent reporting and simple fee structures, alongside an easy registration process through local distributors. Sustained relationships with investors have been vital in building confidence in this new product.
As the firm enters the second year of operating feeder funds in Dubai, Mehta anticipates a phase of expansion and innovation, reflecting evolving investor demand and preferences. He mentioned an increasing need for liquidity solutions and emphasized their commitment to introducing more specialized and sophisticated offerings to the market through their feeder funds platform.
Looking ahead, Mehta stated that the firm aims to strengthen its regional presence while continuing to seize opportunities that bridge the gap between global investment options and the unique needs of investors in the Gulf region. This will involve launching new products, enhancing digital experiences, and forming strategic partnerships. The firm will remain focused on its agility, effectiveness, and leadership in a rapidly evolving market.