BlackRock has recently obtained a license to do business in Abu Dhabi, marking a significant expansion into the Middle East region. This new development comes after the company received approval from Saudi Arabia just last month. The investment management firm is now planning to seek regulatory approval to establish its presence in the Abu Dhabi Global Market, located at the heart of the UAE’s capital.
The Abu Dhabi office of BlackRock will primarily focus on working with sovereign wealth funds, wealth managers, and investment vehicles that are based in the region. This move follows the company’s recent approval from Saudi Arabia to establish a headquarters in Riyadh. BlackRock has been actively expanding its reach in the Middle East, with plans to receive up to $5 billion from the Public Investment Fund to invest in the region and establish a team in Riyadh.
In addition to these developments, BlackRock has also partnered with Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi to support the development of data warehouses and energy infrastructure in the region. Charles Hatami, the Head of the Middle East for BlackRock, highlighted several reasons why the firm chose to operate in Abu Dhabi. He mentioned that the region’s status as a key player in capital markets, as well as its government’s proactive policies and commitment to sustainability, make it an ideal location for the company.
Hatami emphasized that Abu Dhabi has quickly become a global financial center and that BlackRock intends to focus on private markets, particularly AI infrastructure, in the region. BlackRock’s CEO, Larry Fink, pointed out that having a presence in both Abu Dhabi and Riyadh makes strategic sense, as these regions are competing with Dubai to become the premier business hub in the Middle East.
Abu Dhabi and Riyadh are well-known for holding over $1 trillion of sovereign wealth, making them significant players in the global capital markets landscape. With its recent approvals and partnerships in the region, BlackRock is positioning itself as a key player in the Middle Eastern financial markets, leveraging the unique opportunities presented by these growing economies.