Asset management companies are known as money managers of different firms because they invests funds gathers form different clients and then put these funds into different investments like bonds. There are several roles which an asset management company Dubai has to play in order to growth of different parts of the economy. They are different from the roles played by investing banks in many ways. The community management company in Dubai has to play the following roles:
Economy financing: These companies take funds from different investors and invest in different government securities like stocks and bonds; they also invest this money by lending this to the business firms and house hold common people in form of real estate and small loans. By doing all these activities these companies help in financing the economy. They provide a better channel for the investors who want to invest their savings in secure projects and they also help the borrowers who want to borrow money on easy conditions because conditions of investing banks are quite harsh and strict.
Economy growth: By helping in economy financing these companies play a very important role in the growth of the economy. When they get money from investors and lend it to borrower they start a circle of money which will then is almost never ending and help the economy of a certain country to grow. Growth of the economy also depends on the growth of small businesses which are invested by these companies on easy to return conditions. These conditions should be easy to return so that people can take this opportunity without being reluctant.
Intermediary: These companies play a vital role in the economy by working as an intermediary between investors and lenders. They are offering their services as an intermediary to small household businesses, different small to medium business firms and government. They also play the role of intermediary for pension funds developed by different companies for their employees and the insurance companies who provide these pension funds and other different kinds of insurances to different companies. Pooling: These companies manage pools of investments from different parts of the economy. By managing a pool they reduce the risks of investors as well as the lenders. Pooling helps in many ways especially in terms of risk cutting.