Pension funds are the main pillar to manage assets in the advanced world

The UAE is likely to attract further overseas investments despite the obstacles facing foreign investors in the country, senior portfolio manager at Emirates NBD Richard Lee told Mubasher.

Lee also suggested a raft of solutions to overcome these challenges and provide a safe environment for long-term foreign investments.

Most of the GCC stock markets, mainly in the UAE, have joined or are on the verge of being included in the main indices, he indicated.

This step will help in attracting foreign investors and boosting the local assets, the bank’s senior portfolio manager said.

The markets are expected to benefit from overseas inflows related to the JP Morgan Emerging Markets Bond Global Index, he added.

He noted that pension funds are the main pillar to manage assets in the advanced world.

The absence of public or private pension plans in the UAE and the GCC region in general throws sand in wheels of assets management growth, Lee said.

He also highlighted that the restrictions imposed on foreign ownership and the government’s holding of assets have led to a lack of initial public offerings (IPOs).

Restrictions on foreign investors have reduced the trading volume in the local markets, he noted, projecting a positive outlook in the long-term for assets management.

The recently upgraded stocks in the JP Morgan EM index are likely to attract foreign liquidity until the end of the year.

Source: zawya