(Bloomberg) -- BlackRock Inc. received a commercial license to operate in Abu Dhabi, the latest sign that the asset manager is looking to deepen its ties across the region.
The company also plans to seek regulatory approval to operate in ADGM, the city’s financial center, according to a statement. The new office will allow it to work more closely with sovereign wealth funds, wealth managers and investment vehicles based in Abu Dhabi, BlackRock said.
“Abu Dhabi has rapidly transformed into a global financial center,” Charles Hatami, head of the Middle East for BlackRock, said in a statement. “Its strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets.”
Abu Dhabi and Riyadh are competing with Dubai to be the Middle East’s main business hub. For BlackRock Chief Executive Officer Larry Fink, having operations in the two countries makes sense: Abu Dhabi and Riyadh each control over $1 trillion in sovereign wealth, making them among the biggest pools of capital in the world.
BlackRock received approval from Saudi Arabia last month to set up its regional headquarters in Riyadh. The $11.5 trillion asset manager has been intensifying its efforts to grow in the kingdom and earlier this year announced it would get as much as $5 billion from the Public Investment Fund to invest in the Middle East and build a Riyadh-based investments team.
While Riyadh has asked international firms to boost their local presence, BlackRock has already teamed up with Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan on one of the largest efforts to date to bankroll the build-out of data warehouses and energy infrastructure.
“We look forward to continuing our contribution to the region’s economic development,” Hatami said, noting the company’s focus in the region is on “private markets, including AI infrastructure.”
The latest move comes after BlackRock appointed Mohammad Alfahim as head of its business in the United Arab Emirates, while Ben Powell relocated to the region to be the first-ever chief Middle East and Asia Pacific investment strategist for the BlackRock Investment Institute.
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