Franklin and Soros enter local stock market

Dubai: Top global investors George Soros and Franklin Templeton Investments have entered the local stock market lately, according to Shaikh Khalid Bin Zayed Bin Saqr Al Nahyan, Chairman of Bin Zayed Group, the local Arabic daily Al Khaleej reported this week.

It is estimated that the foreign investors bought up to $100 million of shares from local stock markets in December, the paper said.

The entry of the two players into the local stock market indicates that these investors expect real opportunities to reap profits from UAE stock market investments, with prices reaching very low levels, said Shaikh Khaled, who is also chairman of the boards of Tamweel, Salama and Manasek companies.

On his visit to Dubai in December, Mark Mobius, managing director of Franklin Templeton Asset Management, said the company was looking at the market seriously and was in the process of hiring analysts.

When the company's local office was contacted to confirm the news, the representative said, "We definitely have not made an official release in that respect."

Harshendu Bindal, senior director, CEEMEA, Franklin Templeton Investments Ltd, added: "To me, one of two things could have happened. One, maybe Mobius and his team have shown interest through a broker. And maybe talking to a broker, they [Al Khaleej] may have played straight. The other possibility is that they might have picked up from his media comments that we are interested in those markets and written it as already invested."

Experts said the entry is a positive indicator for the market, especially since international investors study their options carefully, and have advanced investment methods, and usually rely on long-term investments to make profit.

"This goes to strengthen our argument that GCC economies are poised to become the next Asian tigers, said Haissam Arabi, managing director of Shuaa Asset Management. "Soros and Templeton are top international investors in emerging markets and they know an opportunity when they see it."