BlackRock Inc., the world’s largest asset manager with $11.4 trillion in assets under management, has obtained a commercial license to operate in Abu Dhabi.
The company also plans to seek regulatory approval to operate within the Abu Dhabi Global Market (ADGM). This international financial center hosts a growing number of financial and crypto firms.
With this expansion, BlackRock aims to deepen its engagement with Abu Dhabi’s sovereign wealth funds, wealth managers, and investment vehicles, focusing on areas like artificial intelligence (AI) infrastructure and sustainable investment solutions.
Abu Dhabi’s Appeal as a Financial Hub: BlackRock’s License as a Strategic Move
Charles Hatami, BlackRock’s head of Middle East operations, highlighted Abu Dhabi’s transformation into a global financial powerhouse, attributing it to:
“Its strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets.”
This aligns with Abu Dhabi’s broader push to compete with Dubai and Riyadh as the region’s primary business hub.
The capital’s proactive efforts have made it a prime destination for global capital markets, and significant investments have been made in AI and digital finance.
BlackRock’s expansion follows broader AI investments in Abu Dhabi, including Microsoft’s $1.6 billion funding for G42, an AI tech holding company.
While BlackRock has not specifically mentioned digital assets as part of its Abu Dhabi strategy, its global interest in emerging technologies, including AI, positions it well within an increasingly crypto-friendly region.
BlackRock has been recently facilitating crypto adoption more than any other institution.
Just recently, BlackRock’s iShares Bitcoin Trust (IBIT) has quickly surpassed the iShares Gold ETF (IAU) in net assets, reaching $33.17 billion as of November 7, less than a year after its launch.
Moreover, the firm’s spot Bitcoin ETF (IBIT) also experienced record-breaking $1.1 billion inflows in a single day, coinciding with Bitcoin hitting a new all-time high of $76,943 this month. The new ATH is currently $93,000.
This surge followed a brief period of outflows and accounted for 82% of the $1.34 billion total inflows across U.S.-listed spot Bitcoin ETFs that day.
BlackRock’s Broader Strategy: Is the Middle East the Next Global Crypto Hub?
BlackRock’s move into Abu Dhabi is part of a wider Middle Eastern strategy, including a significant presence in Saudi Arabia.
Last month, the asset manager announced plans to establish a regional headquarters in Riyadh, supported by up to $5 billion from the Saudi Public Investment Fund (PIF) to focus on investments in the Middle East.
The firm has already collaborated with Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan on major projects, such as financing data warehouses and energy infrastructure.
Moreover, BlackRock has strengthened its leadership team in the region.
Mohammad Alfahim was recently appointed head of the UAE business, and Ben Powell relocated to serve as the firm’s first Chief Middle East and Asia Pacific Investment Strategist.
Notably, BlackRock is broadening the reach of its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the largest tokenized real-world asset (RWA) fund, by expanding access to five additional blockchains: Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon.
The fund was previously limited to Ethereum, and this expansion enables even deeper integration with decentralized finance (DeFi) ecosystems.
This offers institutional investors and protocol treasuries enhanced opportunities for stable yield and collateral use in DeFi trading.
It was tokenized by Securitize and backed by U.S. Treasury bills. The fund has garnered over $520 million in deposits, leading the $2.3 billion tokenized Treasury market.
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