Over the years, Dubai has attracted entrepreneurs worldwide to set up businesses in the Emirate. Home to high net-worth individuals and families, external asset management services were introduced to support the needs of these wealthy individuals. The services offered help increase net worth and reach new heights.
External Asset Managers (EAMs), also known as Independent Asset Managers (IAMs), manage their clients' investments and advise them to the best of their knowledge. It is important for you to understand the nuances of asset management in Dubai and learn about the benefits and process of hiring an IAM. This article will offer insights into fund management companies located in Dubai.
Details of External Asset Management in Dubai
The main idea behind external asset management services in Dubai is to handle investments on behalf of wealthy individuals, families, and corporations. EAMs do not own any assets; they just manage assets for their clients. They also offer guidance on new investment opportunities.
When individuals like you choose to collaborate with a company that handles asset management in Dubai, you will need to sign an agreement with the asset manager and custodian bank. The agreements are as follows -
- EAM Agreement - This is between the external wealth manager and the bank.
- Client Agreement - This is between the client and the chosen asset manager.
- Banking Agreement - This is signed by the client and the bank that holds the assets.
Benefits of Hiring an External Asset Manager in Dubai, UAE
It is important to understand the benefits of availing external asset management services for your business setup in UAE. Let us have a look at some of them :
- They aim to build a long-term relationship by providing quality service to the clients.
- IAMs tailor solutions as per your business or personal goals.
- They find the best investment opportunities, increase efficiency and reduce expenses.
- EAMs have thorough knowledge about making good investment decisions that can benefit them.
- They help in expanding the portfolio by investing in various sectors and reducing investment risks.
- EAMs are self-employed and have a customer-driven approach, allowing them to provide fair advice.
How to Choose an External Wealth Management Company in Dubai?
Choosing the right external fund manager in Dubai plays an important role. Given this, you must look for an independent asset manager who has ample knowledge of services such as estate planning and risk management strategies, among others. The person must also clearly understand the needs of individuals or business setup in Dubai. Another thing to consider is hiring an EAM located in the Emirate, as proximity matters during emergencies.
Fund Management Services Provided by Commitbiz
Business setup experts from Commitbiz have assisted many entrepreneurs by offering them customised external asset management services in Dubai. A few services we offer are -
- Asset allocation.
- Portfolio management.
- Wealth management services.
- Investment opportunity scouting.
How Can Commitbiz Help?
Commitbiz has assisted various entrepreneurs in establishing their businesses in the UAE and the Middle East. Our team understands each client's unique needs and offers customised services to streamline the entire process. From company formation to meeting legal requirements, Commitbiz provides continuous support, ensuring a smooth and efficient business setup experience. Get on a free call with us to get started!
What kinds of assets do external asset managers in Dubai handle?
Some of the assets EAMs in Dubai manage are stocks, real estate, and equity, among others.
How does an EAM in Dubai get paid?
The client provides them with a certain percentage of assets or offers them a performance-based fee.
How do I change my external asset manager?
If you wish to replace your EAM in Dubai, you must check the termination clause in the contract and then inform the asset manager about the replacement.