BlackRock BagsAbu Dhabi’s Operational License For AI And Private Markets

Key takeaways

• Leading investment management firm BlackRock has secured a license to operate in Abu Dhabi, the capital of the United Arab Emirates (UAE).
• This license serves as an expansion move for BlackRock's AI and private markets in the crypto-friendly region.
• Abu Dhabi continues to broaden its stance as an attractive center for growing innovation and digital assets.

BlackRock Secures Operational License In Abu Dhabi For AI And Private Markets

The prominent global investment and asset management company BlackRock has received Abu Dhabi's operational license.

A November 18 Bloomberg report disclosed this newest development regarding BlackRock's expansion moves. The report noted that the license will enable the asset manager to diversify its AI and private markets in the capital of the United Arab Emirates (UAE).

BlackRock also seeks a license to operate in the Abu Dhabi Global Market (ADGM), an international financial hub in the region. This new office will enable the company to work closely with sovereign wealth funds, wealth managers, and Abu Dhabi-based investment entities.

ADGM stands out due to the participation of several crypto-related entities, including M2, Blockdaemon, Laser Digital, and others.

In a statement to Bloomberg, Charles Hatami, BlackRock's Middle East Head, disclosed the company's scope of activities via its expansion to Abu Dhabi. He pointed out that BlackRock will focus on artificial intelligence infrastructure and private markets in the region.

Further, Hatami applauded Abu Dhabi's proactiveness and commitment to innovation, labeling the region as a global financial center." He noted that the region has become an attractive hub with its friendly policies for different companies and businesses.

Hatami stated: Abu Dhabi has rapidly transformed into a global financial center. Its strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets."

BlackRock's latest operational license in Abu Dhabi comes at the heel of another license from Saudi Arabia last month. The asset manager received approval to establish its regional headquarters in Riyadh, Saudi Arabia.

This move aligns with BlackRock's efforts to expand within the region. Earlier this year, the company disclosed its readiness to allocate $5 billion from its Public Investment Fund to invest in the Middle East and develop a Riyadh-based investment team.

BlackRock remains distinctive as the issuer of the largest US-based spot Bitcoin ETF. Its iShares Bitcoin Trust ETF, IBIT, boasts net inflows of over $29.28 billion and total assets worth $42.89 billion as of November 15.

Abu Dhabi Reflects Friendly Environment For Innovative Technology

The UAE has recorded a growing dominance in digital finance. According to an August report from investment migration consultancy company Henley & Partners, UAE ranked third in a crypto adoption index.

The nation's capital, Abu Dhabi, has become one of the regions with a favorable environment for innovative technology and financial growth. This friendly atmosphere has attracted various AI companies and investments.

In April, Microsoft revealed its $1.6 billion investment in an Abu Dhabi-based AI tech entity, G42. Also, in September, Microsoft disclosed its plan to develop two AI centers in the region. This move aligns with the tech company's goal of global AI expansion.

Microsoft highlighted that one of the centers will help AI projects that resolve key societal goals. Meanwhile, the other center will concentrate on creating industry standards for the responsible use of AI.

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