DUBAI, March 21 (Reuters) - Investment manager Franklin

Templeton has officially launched its operations in

Saudi Arabia after obtaining two licenses from the Gulf

country's bourse regulator, as more companies set up base in the

kingdom.

Franklin Templeton has obtained a Managing Investments and

Operating Funds license as well as an Advising one from Saudi

Arabia's Capital Market Authority (CMA), it said in a statement.

As Saudi Arabia attempts to wean its economy off oil under

its economic transformation strategy known as "Vision 2030",

competition with the United Arab Emirates - the traditional

financial hub of the region - to draw foreign business has

increased.

Riyadh had also set up a deadline, which expired in January,

for foreign firms to establish their regional headquarters in

the kingdom or lose out on hundreds of billions of dollars in

government contracts.

Under the programme, which Saudi Investment minister Khaled

Al-Falih said has attracted 200 foreign companies as of

December, firms enjoy offer tax incentives including a 30-year

exemption for corporate income tax.

"The Middle East is a key region for Franklin Templeton. We

are delighted that Saudi Arabian investors now have local access

to the firm's global strength through its robust global platform

and public and private market offerings," Franklin Templeton

President and CEO Jenny Johnson, was quoted as saying.

Franklin Templeton has $1.6 trillion in assets under

management and its team in Riyadh includes professionals focused

on the region's equity, fixed income and sukuk markets.