BlackRock Investments has secured a license of operation in Abu Dhabi. According to its statement, the asset management firm has obtained the license to provide commercial services in the country. The company is planning to extend its services to the region through the appointment of Mohammad Alfahim as its business head in the country.
Ben Powell is also expected to assume the position of chief investment strategist of the BlackRock Investment Institute in the Middle East and Asia Pacific, the first ever for the firm. The company’s Middle East head Charles Hatami noted that the company is set to focus on the private markets, including artificial intelligence technology.
BlackRock wants additional approval in the region
BlackRock is looking at plans to increase before its approval in Abu Dhabi, opening it up to a bigger audience. According to its statement, it wants to operate in the country’s global market (ADGM) also known as its international financial center. The approvals will allow it to collaborate with wealth funds, managers, and other investment vehicles in the country.
The ADGM is already home to prominent crypto firms, including Blockdaemon and Laser Digital. Presently, Abu Dhabi is contesting with Dubai over the crown of the Middle East’s primary business hub. Both locations boast about $1 trillion in sovereign wealth.
This present license is coming after the firm’s previous one in Riyadh, which according to its statement, was obtained last week. The license will enable BlackRock to set up a regional headquarters in the location. Aside from the license, it secured a $5 billion fund from Saudi’s public investment fund for Middle East development.
BlackRock also announced a partnership that will focus on several infrastructure projects including data warehouses and energy facilities with Sheikh Tahnoon bin Zayed Al Nahyan in Abu Dhabi.
Artificial intelligence technology over crypto
According to Henley and Partners, the UAE is third in crypto adoption, however, BlackRock is focusing its expansion on AI. This mirrors the moves of other firms, with Microsoft also making a sizable investment of $1.6 billion in AI tech firm G42, amid plans to build AI centers in the city.
With the expansion, BlackRock will focus its resources on the country’s growing financial influence and technological advancement. Meanwhile, there are unconfirmed reports that the company could be pursuing a crypto-based business in the country later.
“We look forward to continuing our contribution to the region’s economic development,” Hatami said. He also discussed the importance of the region’s location and its regulatory environment for market development. The firm is looking forward to integrating itself into the nerve center of the country, making itself the go-to for both traditional finance and crypto innovation.
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