BlackRock receives Abu Dhabi commercial license after Saudi approval

BlackRock has received a license to operate in Abu Dhabi and has expanded its business into the Middle East region after receiving approval from Saudi Arabia last month.

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

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

This latest development comes a month after BlackRock received approval from Saudi Arabia to open a headquarters in Riyadh. The asset manager continued to expand its business scope into the Middle East after announcing it would receive up to $5 billion from the Public Investment Fund to invest in the Middle East and build a well-established team in Riyadh.

Additionally, BlackRock has partnered with Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi to finance the construction of data warehouses and energy infrastructure in the region.

In his statement, BlackRock Middle East President Charles Hatami explained various reasons why the firm chose to operate in Abu Dhabi. Considering Abu Dhabi’s status as a hotspot for capital markets, he said 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,” Hatami said, adding that the firm plans to focus on private markets in Abu Dhabi, especially artificial intelligence infrastructure.

BlackRock Chief Executive Larry Fink said it made sense for the investment firm to operate in both Abu Dhabi and Riyadh, as both regions compete head-to-head with Dubai to become the Middle East business hub.

Both regions are famous for having sovereign wealth of over $1 trillion, representing some of the world’s largest capitals.