BlackRock expands in Middle East with Abu Dhabi license
Blackrock secures Abu Dhabi license for strategic Middle East expansion
BlackRock, the world’s largest asset manager with $11.5 trillion in assets under management, has secured a commercial license to operate in Abu Dhabi.
The move underscores the company’s intent to strengthen its presence in the Middle East, leveraging the region’s growing financial influence and technological investments, reports Cryptopolitan.
Strategic Appointments and Regional Expansion
As part of its expansion, BlackRock appointed Mohammad Alfahim as the head of its UAE business and relocated Ben Powell to serve as the first chief Middle East and Asia Pacific investment strategist for the BlackRock Investment Institute. The company is also seeking additional regulatory approval to operate in the Abu Dhabi Global Market (ADGM), the city’s international financial center.
The ADGM is already home to major crypto and tech firms such as Blockdaemon and Laser Digital, making it a competitive hub for financial and technological innovation in the Middle East. BlackRock’s expansion will enable closer collaboration with Abu Dhabi’s sovereign wealth funds and private investment vehicles, further cementing its regional presence.
AI Infrastructure Takes Priority Over Crypto
While the UAE ranks third globally in crypto adoption, BlackRock’s expansion is focused primarily on AI infrastructure. Charles Hatami, BlackRock’s Middle East head, highlighted the company’s investment priorities in private markets, including artificial intelligence. This aligns with Abu Dhabi’s broader technological ambitions, which include Microsoft’s $1.6 billion investment in AI tech holding company G42 and plans to establish two AI centers in the city.
Despite the emphasis on AI, BlackRock’s iShares Bitcoin Trust ETF has surpassed $33 billion in net assets, exceeding its iShares Gold Trust ETF. However, the company has not disclosed specific plans for cryptocurrency-related operations in Abu Dhabi.
Collaboration and Regional Competition
BlackRock’s entry into Abu Dhabi complements its growing footprint in the region. The company recently received approval to establish its regional headquarters in Riyadh and secured $5 billion from Saudi Arabia’s Public Investment Fund for investments in the Middle East. BlackRock also partnered with Sheikh Tahnoon bin Zayed Al Nahyan on infrastructure projects, including data warehouses and energy facilities.
As Abu Dhabi, Riyadh, and Dubai compete to become the region’s primary business hub, BlackRock’s move positions it strategically to capitalize on these rivalries. With over $1 trillion controlled by sovereign wealth funds in each of these locations, the region presents vast opportunities for both traditional finance and emerging technologies.
“We look forward to continuing our contribution to the region’s economic development,” Hatami stated, emphasizing the importance of Abu Dhabi’s regulatory environment and strategic location. BlackRock’s expansion signals a commitment to not only participating in but shaping the future of the Middle East’s financial and technological ecosystem.
Recently we wrote, that Goldman Sachs, one of the world's largest investment banks, has invested $710 million in bitcoin ETFs.
