BlackRock receives Abu Dhabi commercial license after Saudi approval

BlackRock has received a license to operate in Abu Dhabi, further expanding its business into the Middle Eastern region after gaining approval from Saudi Arabia just last month.

According to a Bloomberg report published on Nov. 18, the investment management company plans to apply to get regulatory approval to set up business in the Abu Dhabi Global Market, at the heart of UAE’s capital.

BlackRock’s Abu Dhabi office will primarily work with sovereign wealth funds, wealth managers and investment vehicles based in the region.

This latest development comes a month after BlackRock secured approval from Saudi Arabia to open up a headquarters in Riyadh. The asset manager has continued to branch out its business reach into the Middle East after announcing it would get up to $5 billion from the Public Investment Fund to invest in the Middle East and build a team rooted in Riyadh.

Additionally, BlackRock has partnered with Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan to bankroll the build-out of data warehouses and energy infrastructure within the region.

In a statement, Head of the Middle East for BlackRock, Charles Hatami, stated several reasons why the firm chose to operate in Abu Dhabi. Considering Abu Dhabi’s status as a hot spot for capital markets, he said that the region’s proactive government policies and commitment to sustainability make it an ideal location.

“Abu Dhabi has rapidly transformed into a global financial center,” said Hatami, adding that the firm plans to focus on private markets, specifically AI infrastructure, in Abu Dhabi.

BlackRock Chief Executive Officer Larry Fink explained that having the investment firm operate in both Abu Dhabi and Riyadh was a logical move, as both regions are competing head-to-head with Dubai to become the Middle Eastern business hub.

Both regions are famous for holding over $1 trillion of sovereign wealth, representing some of the biggest capital in the world.