TLDR:
BlackRock gets Abu Dhabi commercial license
Plans for regional HQ in Saudi Arabia
Focus on AI and decarbonisation solutions
ABU DHABI (The Thursday Times) — The world’s largest asset manager, BlackRock Inc., has made a decisive step into the Gulf’s financial landscape by securing a commercial license in Abu Dhabi. The US-based investment giant, known for its $11.4 trillion assets under management, will now pursue regulatory approval to operate in the Abu Dhabi Global Market (ADGM), marking a significant move towards strengthening its presence in the region’s capital markets.
BlackRock’s entry into Abu Dhabi, just weeks after its announcement to establish a regional headquarters in Saudi Arabia, signals its dedication to the Gulf’s investment opportunities. In Abu Dhabi, BlackRock intends to target the capital’s robust network of sovereign wealth funds, wealth managers, and other key investment entities. This venture aligns with the asset manager’s focus on AI-led infrastructure and sustainability initiatives, reflecting a broader global trend towards digitisation and decarbonisation, which CEO Larry Fink recently identified as the most significant macro trend.
A deeper Gulf strategy
Earlier this year, BlackRock brought in Mohammad AlFahim as Head of the UAE, underscoring its commitment to local expertise in expanding its footprint. The asset manager also relocated Ben Powell, a seasoned strategist, to focus on regional client engagement as Chief Middle East & APAC Investment Strategist, a newly created role within BlackRock Investment Institute. Powell’s presence in the region reflects BlackRock’s increased attention to the Middle East and its recognition of the UAE and Saudi Arabia as critical financial hubs for accessing capital flows and innovative projects.
BlackRock’s pivot towards Riyadh and the PIF
In May, BlackRock revealed a substantial investment collaboration with Saudi Arabia’s Public Investment Fund (PIF), establishing a new platform backed by up to $5 billion. This partnership, aimed at accelerating Saudi Arabia’s Vision 2030 objectives, aligns with BlackRock’s growing influence in Riyadh. The Riyadh Future Investment Initiative saw Fink emphasize the urgent need for trillions of dollars globally to revamp outdated infrastructure, focusing on sustainability and high-tech transformations.
With these expansions, BlackRock is effectively positioning itself to be a major player in Gulf financial markets, while also strengthening its role in the transition to sustainable, tech-driven investments. The firm’s trajectory in the region points to a long-term commitment, aligning its operations with local growth goals and the Gulf’s strategic shifts toward a future rooted in clean energy and digital innovation.
