Best Mutual Funds to Invest in UAE
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The UAE mutual fund market has expanded steadily over the past decade, underpinned by regulatory maturation, rising household wealth, and the country’s positioning as a regional gateway for global capital.
Reforms led by regulators such as the Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA) have improved fund governance, disclosure standards, and cross-border distribution, making the market more accessible to both retail and professional investors.
Assets under management (AUM) in UAE-domiciled mutual funds are estimated at around $5 billion USD, a modest figure in absolute terms but one that reflects a structurally young market still in its growth phase. By comparison, the broader GCC asset management industry exceeded $2.2 trillion USD in AUM in 2024, highlighting the UAE’s role as a fast-developing hub within a much larger regional capital base.
Investor demand has increasingly shifted toward international diversification, particularly global equity funds, US-focused strategies, and thematic exposures linked to technology, artificial intelligence, and sustainability.
At the same time, Shariah-compliant mutual funds and sukuk funds have seen consistent inflows, driven by both local demand and international investors seeking Islamic finance exposure through a regulated, internationally connected market.
So, what are mutual funds
A mutual fund is a collective investment scheme that pools capital from multiple investors to invest in a diversified portfolio of assets such as equities, fixed-income instruments, or a combination of both.
Each investor owns units in the fund, representing a proportional share of its underlying holdings.
Key characteristics of mutual funds include:
- Diversification: Exposure across multiple securities, sectors, or regions
- Professional management: Investment decisions are made by licensed fund managers
- Liquidity: Most open-ended funds allow daily subscriptions and redemptions
- Accessibility: Many funds are available with minimum investments from $10,000 AED or lower via systematic investment plans
Types of mutual funds
Mutual funds available to UAE investors can be broadly categorised as follows:
| Fund Type | Risk Profile | Technical Detail & Context |
|---|---|---|
| Money Market Funds | Low | Short-term cash management funds focused on capital preservation, investing in instruments such as Treasury bills, interbank placements, and (for Islamic funds) Murabaha or Wakalah structures. Liquidity is typically T+1 to T+2, making them suitable for parking cash or managing short-term liquidity. |
| Sukuk Funds (Islamic Fixed Income) | Low – Medium | Shariah-compliant fixed-income funds investing in asset-backed sukuk rather than interest-bearing bonds. GCC sukuk historically offer higher yields than comparable US Treasuries, reflecting regional credit, liquidity, and structural premiums. |
| Regional Equity Funds (MENA) | High | Equity funds focused on Middle East and North Africa markets, with returns closely tied to oil-linked fiscal cycles, government spending programmes, and ongoing privatisation and capital market deepening across the region. |
| Global / Thematic Equity Funds | Very High | Funds providing exposure to global equity markets or specific investment themes such as US technology, artificial intelligence, or healthcare, typically accessed via feeder fund structures that invest into offshore master funds managed by global asset managers. |
| Target Date Funds | Dynamic | Lifecycle funds that automatically adjust asset allocation over time, gradually reducing equity exposure and increasing fixed income as the target year approaches. In the UAE, these are usually accessed via international platforms rather than locally domiciled funds. |
Top performing mutual funds in UAE for 2026
Mutual fund investing in the UAE is shaped less by headline performance rankings and more by access, structure, and regulatory distribution. While hundreds of global funds exist, only a subset are available to UAE-based investors through licensed banks, platforms, and international fund distributors operating under SCA and DFSA oversight.
Over the past two market cycles, investor flows have concentrated in global equity, sector-specific, and thematic strategies, particularly those linked to US technology, financials, and consumer trends. These segments benefited disproportionately from post-pandemic earnings growth, AI-driven capital expenditure, and resilient consumer demand through 2024–2025.
The funds highlighted below are not presented as recommendations, but as illustrative examples of strategies that have delivered strong historical risk-adjusted returns and have been accessible to UAE investors via licensed distributors, private banks, or international investment platforms.
All performance figures are historical, annualised where stated, and subject to market volatility and currency effects.
UCITS mutual funds distributed to UAE investors
These are UCITS-regulated mutual funds (typically Luxembourg- or Ireland-domiciled) that are commonly distributed to UAE investors via licensed banks, private banks, and investment platforms. They represent the core of what most UAE investors access when investing in global mutual funds.
| Fund name | 2025 returns | Initial charge | Ongoing charge | Exit charge | Fund type |
|---|---|---|---|---|---|
| BlackRock Global Funds – World Financials Fund A2 (USD) | 43.9% | 5.00% | 1.81% | 0% | Equity (Financial) |
| Invesco Global Consumer Trends Fund A (USD) | 21.3% | 5.00% | 1.87% | 0% | Thematic Equity (Global consumer) |
| JPMorgan US Technology Fund (USD) | 17.2% | 5.00% | 1.72% | 0.5% | Equity (Technology) |
| Allianz Global Artificial Intelligence Fund AT USD | 15.81% | 5.00% | 2.05% | 0% | Thematic Equity (AI) |
| Fidelity Global Technology Fund A USD | 22.62% | 5.00% - 5.25% | 1.89% | 0% | Equity (Technology) |
| Schroder ISF China A A Acc USD | 34.3% | 5.00% | 1.84% | 0% | Equity (China A-Shares) |
| Fidelity Funds - Global Dividend Fund A-ACC-USD | 22.42% | 5.00% - 5.25% | 1.89% | 0% | Equity (Dividend-focused) |
| Allianz Global Intelligent Cities Income Fund AMg USD | 18.46% | 5.00% | 1.70% | 0.05% | Hybrid (Equity + Fixed Income) |
| Pictet–Global Megatrend Selection P USD | 10.06% | 5.00% | 2.00% | 1.00% | Thematic Equity |
Data as of 20th Jan 2026
Offshore US-domiciled mutual funds
These funds are legally mutual funds under US regulation but are not SCA- or DFSA-registered for local retail distribution. UAE investors typically access them via offshore brokerage accounts, discretionary mandates, or international platforms.
| Fund name | 2025 returns | Exp ratio | Transaction fee (online) | Fund type |
|---|---|---|---|---|
| Fidelity NASDAQ Composite Index Fund | 21.11% | 0.29% | NA | Equity Index |
| Fidelity 500 Index Fund | 17.86% | 0.015% | NA | Equity Index |
| Shelton NASDAQ-100 Index Fund | 20.78% | 0.52% | $49.95 USD | Equity Index |
| Voya Russell Large Cap Growth Index Fund | 15.33% | 0.93% | NA | Equity Index |
| T. Rowe Price Global Technology Fund | 27.28% | 0.92% | NA | Equity (Technology) |
Data as of 20th Jan 2026
Access clarification:These funds are not marketed locally in the UAE. Availability depends on platform eligibility and investor classification.
Shariah-compliant mutual funds
Shariah-compliant mutual funds follow Islamic finance principles, avoiding interest-based instruments and investing through structures such as Murabaha, Sukuk, and screened equities. These funds are widely used by UAE investors seeking faith-aligned portfolios.
| Fund name | 2025 returns | Entry charge | Annual charge | Exit charge | Fund type |
|---|---|---|---|---|---|
| Emirates Islamic Money Market Fund | 4.25% | Up to 1% | 0.1 - 0.5% | 0% | Islamic Money Market |
| Arqaam Islamic Income Fund | 7.9% | Up to 5% | 0.15% | 0 - 3% | Islamic Income |
| Franklin Global Sukuk Fund | 6.94% | 5.75% | 1.50% | 0% | Sukuk (Islamic Fixed Income) |
| Templeton Shariah Global Equity Fund | 18.75% | 5.75% | 1.90% | 0% | Global shariah-compliant equities |
| Franklin Shariah Global Multi-Asset Income Fund | 12.97% | 5.75% | 1.75% | 0% | Shariah multi-asset income strategy |
| ADCB Islamic Balanced Fund | 6.95% | Up to 2% | 0.75 - 1.25% | 0% | Balanced equity x income |
| Mashreq Al-Islami Income Fund | 7.2% | Up to 5% | 0.75 - 1% | 0% | Shariah income strategy |
Where to invest in mutual funds
UAE investors can buy mutual funds through two regulated channels: traditional banking & wealth platforms and digital / international investment platforms.
While both allow access to mutual funds, they differ materially in regulation, fund availability, cost structure, and Shariah access.
Traditional banking & wealth platforms
Traditional banking platforms are the most regulated and comprehensive channel for buying mutual funds in the UAE.
These platforms operate under the oversight of the Securities and Commodities Authority (SCA) for onshore distribution, the Dubai Financial Services Authority (DFSA) within the DIFC, and the Abu Dhabi Global Market (ADGM) for certain wealth and fund structures.
UAE banks typically distribute:
- UCITS mutual funds (Luxembourg / Ireland-domiciled)
- Bank-branded and third-party Shariah-compliant mutual funds
- Selected offshore funds via wealth advisory channels
| Platform | What you can buy | Platform / advisory / execution fees (defensible) |
|---|---|---|
| Emirates NBD / ENBD X | UCITS + Shariah-compliant mutual funds | Banks do not publicly list flat execution fees; mutual fund buys are typically integrated with advisory/service charges, which vary by relationship tier. Historically, platform-level fees can range from ~1.5%–3% of transaction value on smaller ticket sizes, declining for larger portfolios (Emirates NBD schedules show mutual fund execution/custody fees averaged ~1.575%–3.15% for smaller trades across asset types) |
| ADCB Select / ADCB Islamic | UCITS + Shariah-compliant mutual funds | ADCB does not publish a fixed mutual fund platform fee; costs are typically embedded in advisory/service arrangements or negotiated with private banking clients. |
| Standard Chartered UAE – Fund Select | UCITS + selected Islamic global funds | SC does not disclose flat platform fees publicly; advisory/service fees and fund TERs apply. SC materials note the ability to invest via Smart Savings Plans with no extra transaction fee beyond fund costs |
| Dubai Islamic Bank (DIB) | Shariah-compliant mutual funds + some UCITS | Fees are typically structured as advisory/service charges integrated with Islamic wealth services; no single flat execution fee is published. |
| First Abu Dhabi Bank (FAB) | UCITS + Shariah-compliant mutual funds | FAB wealth service charges vary by client tier; platform/execution fees are not published as a flat rate. |
| HSBC UAE Wealth | UCITS + selected Islamic funds | HSBC does not disclose a specific mutual fund platform fee publicly; costs are part of overall advisory/wealth fees. |
| Mashreq Bank Wealth | UCITS + third-party Islamic funds | Mashreq highlights “competitive pricing” but does not publish a flat mutual fund execution fee; advisory/service costs apply |
Crucially, bank platforms are the only regulated channel for buying UAE bank-branded Shariah-compliant mutual funds.
What this channel is best for:
- Buying UCITS mutual funds from global managers (BlackRock, Invesco, Fidelity, Pictet, JPMorgan)
- Accessing Shariah-compliant mutual funds (Islamic money market, sukuk, GCC equity)
- Investors who want advisory support, SIPs, and consolidated banking + investing
Digital & international investment platforms
Digital and international investment platforms provide offshore access to mutual funds under foreign regulatory frameworks, typically overseen by regulators such as the UK Financial Conduct Authority (FCA) or the U.S. Securities and Exchange Commission (SEC)
In the UAE, these platforms may hold DFSA or ADGM brokerage licences, but they do not operate as local mutual fund distributors in the same way banks do.
These platforms primarily allow self-directed investors to buy:
- UCITS mutual funds
- Offshore US-domiciled mutual funds (eligibility-dependent)
They do not offer UAE bank-branded Shariah-compliant mutual funds.
| Platform | What you can buy | Platform / custody / execution fees |
|---|---|---|
| Interactive Brokers | UCITS mutual funds; offshore US mutual funds | IB does not charge custody fees and many mutual funds can be traded with zero commission, though charges vary by fund and region. There is no flat platform fee, but other non-trading fees (e.g., currency conversion) may apply depending on account settings. (Brokerchooser data ranks IB mutual fund trading as low fee relative to peers) |
| Saxo Bank | UCITS mutual funds; offshore US mutual funds | Saxo states zero commission and zero custody fees on many mutual funds through its platform, though specific terms vary by country of residence and fund provider. Other account or reporting fees (custody, manual order fees) may apply. |
What this channel is best for
- Self-directed investors seeking global fund access
- Buying offshore US mutual funds not distributed locally
- Lower explicit transaction costs (but no Islamic bank fund access)
Cost structure of mutual fund investing
Mutual fund costs in the UAE are layered, not single-line. Investors typically pay fund-level charges, and may also incur platform or advisory fees, depending on where the fund is purchased.
1. Fund-level charges (built into the fund)
These costs apply regardless of platform and are deducted from the fund’s NAV.
| Cost type | What it covers | Key points |
|---|---|---|
| Ongoing charges (TER) | Portfolio management, administration, custody | Lower for index funds; higher for active, thematic, and Shariah funds |
| Subscription (entry) charge | One-off cost at purchase | Often published as “up to X%”; frequently discounted or waived |
| Redemption (exit) charge | One-off cost on sale | Less common; mainly used to discourage short-term trading |
2. Platform & advisory fees (charged by the distributor)
These fees are not part of the mutual fund and vary by institution and client arrangement.
| Platform type | Typical fee structure |
|---|---|
| UAE banks | Advisory or service fees; rarely a flat execution fee |
| Private banking | Tiered advisory fees based on portfolio size |
| Digital brokers | Low or zero platform fees; execution costs may apply |
An investor can hold the same fund at different platforms and pay different total costs.
3. Execution & ancillary costs (platform-dependent)
More common on self-directed platforms.
| Cost | When it applies |
|---|---|
| Trading commission | Per fund transaction (fund-dependent) |
| FX conversion | Investing in non-AED / non-USD share classes |
| Account fees | Platform-specific, increasingly rare |
How to choose the right mutual funds
Selecting mutual funds in the UAE should be guided by risk alignment, investment horizon, and suitability, rather than short-term performance rankings. While historical returns provide useful context, they are backward-looking and should never be assessed in isolation from risk, fees, and portfolio role.
1. Define your investment objective
Start by clarifying what the money is meant to do. Broadly, mutual funds in the UAE fall into three functional roles:
- Capital growth: Global equity, sector-focused, and thematic funds are designed for long-term wealth accumulation but can experience meaningful volatility over shorter periods.
- Income generation: Sukuk funds, income-oriented equity funds, and multi-asset income strategies aim to provide more stable cash flows, though income levels can still fluctuate with market conditions.
- Capital preservation and liquidity: Money market funds — including Shariah-compliant money market funds — are commonly used for short-term needs, cash management, or as a lower-risk allocation within a broader portfolio.
Understanding the role a fund plays in your portfolio is more important than selecting the highest recent performer.
2. Assess risk tolerance and time horizon
All mutual funds carry risk, including the potential loss of capital. The magnitude and frequency of volatility, however, vary significantly by fund type:
- Higher-risk funds: Sector-specific, thematic, and regional equity funds (such as MENA or China-focused strategies) can experience sharp drawdowns, particularly during periods of market stress.
- Lower-risk funds: Sukuk funds and money market funds generally exhibit lower volatility, though they are still exposed to credit risk, liquidity conditions, and interest-rate dynamics.
As a rule of thumb, longer time horizons provide greater capacity to absorb volatility, while shorter-term goals typically warrant more conservative fund choices.
3. Review total costs and fees
Fees matter — especially over long holding periods. Investors should look beyond headline returns and evaluate the total cost of ownership, which includes:
- Fund-level charges: Ongoing charges or expense ratios, which are higher for actively managed and thematic funds than for index-tracking strategies.
- Platform or advisory fees: Charges imposed by banks or platforms for advisory services, portfolio monitoring, or distribution, which vary by institution and client arrangement.
Even small differences in annual fees can compound meaningfully over time, reducing net returns.
4. Confirm regulatory and Shariah compliance
Before investing, ensure that funds are distributed through regulated institutions and align with your legal and ethical requirements:
- Regulatory oversight: Mutual funds in the UAE should be distributed by institutions regulated by the Securities and Commodities Authority (SCA), Dubai Financial Services Authority (DFSA), or the Abu Dhabi Global Market (ADGM), depending on the platform and jurisdiction.
- Shariah compliance: For Islamic investments, funds should be overseen by a recognised Shariah Supervisory Board and adhere to Islamic finance principles, including prohibitions on interest-based income, excessive leverage, and non-permissible sectors.
Clear regulatory and Shariah oversight is essential for investor protection and long-term confidence.
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