As the UAE capital becomes a worldwide financial hub, BlackRock, the largest asset management in the world, has been granted a commercial license to operate in Abu Dhabi.
BlackRock, a New York-based firm that manages assets worth around $11.5 trillion, announced on Monday that it also intends to secure regulatory authorization to conduct business at Abu Dhabi Global Market, known as the international financial hub of the emirate. Charles Hatami, the global head of BlackRock’s financial and strategic investors business, stated that the company will use Abu Dhabi’s strategic location, proactive government policies, and commitment to sustainable growth, to serve its clients in United Arab Emirates and globally.
Abu Dhabi has quickly developed into a major international financial hub and can become a perfect place for capital markets, According to Mr. Hatami
In addition to providing our clients with cutting-edge investment options, especially in private markets, such as artificial intelligence infrastructure and transition-focused solutions, we look forward to continuing to contribute to the region’s economic development.
According to Mr. Hatami, working within ADGM would enable BlackRock to better serve its global clients and interact well with wealth managers, sovereigns, and specialized investment vehicles situated in Abu Dhabi that operate in industries like technology, renewable energy, and infrastructure.
The launch of BlackRock’s activities in Abu Dhabi coincides with the emirate’s ongoing efforts to attract international investors to establish operations there as it expands its financial sector to support capital’s vision for economic diversification.
Stonepeak, a US-based alternative investment firm that manages $71.2 billion in assets, was given regulatory authority in September to establish a base in the ADGM in order to organize and provide advice on investment opportunities in the United Arab Emirates, referred as the second-largest economy in the Middle East.
Additionally, in September, ADGM welcomed its first trillion-dollar asset managers, Chicago investment based Nuveen being one of them and PGIM, the worldwide asset management of the New York stock Prudential Financial to be the second one.Both companies intend to grow their operations and clients presence in the Middle East.
Data from the Sovereign Wealth Fund Institute indicates that BlackRock is the world’s largest asset manager, with AUMs over a third larger than Vanguard’s $8.7 trillion, which comes in second.
The US-based SWFI reports that the cumulative assets under management (AUM) of the top 10 largest asset managers in the world, nine of which are located in North America, exceed $37.1 trillion.
BlackRock’s announcement of plans to set up its regional headquarters in Saudi Arabia and its most recent entry into Abu Dhabi are indications that the business is seeking to expand its activities in the Gulf and the wider Middle East.
Ben Powell, the first top Middle East and Asia-Pacific investment strategist at the BlackRock Investment Institute, was transferred to the UAE in August after BlackRock named Mohammad Al Fahim as its head for the region earlier this year.
Meanwhile, one of the financial hubs with the highest rate of growth in the globe is ADGM, which was founded in 2015. There were 112 fund and asset managers working in ADGM by the end of June, overseeing 141 funds, to name few which includes AXA IM, Eiffel Investment ME, GQG Partners, SS&C Financial Services, and Morgan Stanley and are just few of the well-known firms in the asset management industry that have been awarded financial service providers licenses.
The center registered 231 financial services businesses in the first half of this year, which is 31% more compared to the same period from last year. By the end of June, 2,088 companies had established their bases in ADGM.
According to a report released by ADGM last month, licensed financial service providers increased to 90% from 42% during the first half of the year, and 1,271 new licenses were issued, which is up by 20.5% on an annual basis.
Additionally, fresh initiatives to draw more businesses to the financial center have been revealed. Following the financial district’s expansion to encompass Reem Island, it announced in July that it will lower commercial registration license fees for some categories while increasing them for others as part of its transitional strategy as the financial district increases its expansion to Al Reem Island.
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