Vignesh Karunanidhi
BlackRock, the $11.5 trillion asset management giant and spot Bitcoin ETF issuer, has secured a commercial license to operate in Abu Dhabi.
The company has strengthened its regional presence by appointing Mohammad Alfahim as UAE business head. It also relocated Ben Powell as the first-ever chief Middle East and Asia Pacific investment strategist for the BlackRock Investment Institute.
BlackRock’s iShares Bitcoin Trust ETF recently surpassed $33 billion in net assets, exceeding its iShares Gold Trust ETF. Charles Hatami, BlackRock’s Middle East head, emphasized the company’s focus on “private markets, including AI infrastructure.”
BlackRock plans to seek additional approval
BlackRock plans to seek additional regulatory approval to operate in the Abu Dhabi Global Market (ADGM), the city’s international financial center. This expansion will enable closer collaboration with sovereign wealth funds, wealth managers, and investment vehicles based in Abu Dhabi.
The ADGM already hosts several prominent crypto companies, including Blockdaemon, M2, and Laser Digital. Abu Dhabi and Riyadh are competing with Dubai to become the Middle East’s primary business hub. Each of these locations controls over $1 trillion in sovereign wealth.
Last month, BlackRock received approval to establish its regional headquarters in Riyadh. It also secured up to $5 billion from Saudi Arabia’s Public Investment Fund for Middle Eastern investments.
The company has also partnered with Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan on major infrastructure projects focusing on data warehouses and energy facilities.
BlackRock emphasizes AI infrastructure
While the UAE ranks third globally in crypto adoption according to Henley & Partners, BlackRock’s expansion emphasizes AI infrastructure over crypto. This aligns with broader regional technology investments, including Microsoft’s $1.6 billion investment in Abu Dhabi-based AI tech holding company G42 and plans for two AI centers in the city.
The expansion positions BlackRock to capitalize on the region’s growing financial influence and technological advancement, although specific plans for cryptocurrency-related operations remain undisclosed.
“We look forward to continuing our contribution to the region’s economic development,” Hatami stated. He also highlighted the strategic importance of Abu Dhabi’s location and regulatory environment for capital markets development.
BlackRock expects its latest move to strategically position itself in a region increasingly important for both traditional finance and crypto innovation.
