BlackRock Secures Abu Dhabi License, Sets Sights on AI and Private Markets

The world’s largest asset manager, BlackRock Inc., has secured a commercial license to operate in Abu Dhabi, marking another strategic expansion in the Middle East, Bloomberg reported Monday. The move follows closely on the heels of the company’s recent approval to establish its regional headquarters in Saudi Arabia.

The $11.5 trillion asset management giant plans to seek additional regulatory approval to operate within the Abu Dhabi Global Market (ADGM), the city’s international financial center. This expansion will enable BlackRock to forge closer relationships with sovereign wealth funds, wealth managers, and investment vehicles based in the UAE capital.

Charles Hatami, BlackRock’s Head of Middle East, emphasized the company’s strategic focus in the region. “Abu Dhabi has rapidly transformed into a global financial center,” he stated. “Its strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets.”

The expansion aligns with BlackRock’s broader regional strategy, particularly in artificial intelligence infrastructure and private markets. This focus complements Abu Dhabi’s growing prominence in the AI sector, exemplified by Microsoft’s recent $1.6 billion investment in local AI tech holding company G42 and its plans to establish two AI innovation centers in the city.

For BlackRock CEO Larry Fink, establishing operations in both Abu Dhabi and Riyadh represents a strategic imperative. Both cities control over $1 trillion in sovereign wealth, representing some of the world’s largest capital pools, as they compete with Dubai to become the Middle East’s primary business hub.

The company has already demonstrated its commitment to the region through significant partnerships, including a collaboration with Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan to finance data warehouse development and energy infrastructure. Additionally, BlackRock recently secured up to $5 billion from Saudi Arabia’s Public Investment Fund to invest in the Middle East and establish a Riyadh-based investment team.

To strengthen its regional presence, BlackRock has made key appointments, including Mohammad Alfahim as head of its UAE business and relocating Ben Powell as the first-ever chief Middle East and Asia Pacific investment strategist for the BlackRock Investment Institute.

The expansion into Abu Dhabi represents BlackRock’s latest move to capitalize on the region’s growing importance in global finance, as the Middle East continues to attract international investment firms seeking to tap into its substantial sovereign wealth and dynamic market opportunities.