BlackRock has now expanded its operations into the Middle East with a license to operate in Abu Dhabi.
The investment management firm intends to file for a regulatory license to open for business in the Abu Dhabi Global Market, located in the center of the UAE capital, according to a Bloomberg article released on November 18.
The main clients of BlackRock’s Abu Dhabi branch will be regionally-based investment vehicles, wealth managers, and sovereign wealth funds.
This most recent event occurred one month after BlackRock received Saudi Arabia’s approval to establish a headquarters in Riyadh.
Following its announcement that it will receive up to $5 billion from the Public Investment Fund to invest in the Middle East and establish a team based in Riyadh, the asset manager has expanded its commercial reach into the region.
Furthermore, BlackRock has teamed up with Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi to fund expanding energy infrastructure and data warehouses in the area.
Charles Hatami, BlackRock’s Head of the Middle East, gave a number of explanations in a statement for the company’s decision to operate in Abu Dhabi.
He claimed that the region’s proactive government policies and dedication to sustainability make Abu Dhabi an attractive site, especially given its prominence as a financial markets hotspot.
“Abu Dhabi has rapidly transformed into a global financial center,” Hatami stated, adding that the company intends to concentrate on Abu Dhabi’s private markets, particularly AI infrastructure.
Larry Fink, the CEO of BlackRock, clarified that the investment firm’s decision to operate in both Abu Dhabi and Riyadh was sensible, given that both cities are vying with Dubai to become the center of Middle Eastern commerce.
Both areas are well-known for having some of the largest capital in the world, with over $1 trillion in sovereign wealth.
