BlackRock stakes a claim in Abu Dhabi’s finance scene
'Its strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets'
The biggest asset manager in the world has achieved yet another milestone: a license to operate in Abu Dhabi. This strategic move will boost its AI and private market focus all while stretching its scope into the crypto-friendly region.
Stuart Wallace, Bloomberg News’ Head of the Middle East, North Africa, and Russia, announced via X that BlackRock has received a commercial license to operate in Abu Dhabi. This move underscores the asset manager’s intent to expand its presence in the region.
BlackRock received a commercial license to operate in Abu Dhabi, the latest sign that the asset manager is looking to deepen its ties across the region.https://t.co/2vy0pCErWw via @NicolasParasie pic.twitter.com/NKYMmT685Y
— Stuart Wallace (@StuartLWallace) November 18, 2024
Bloomberg reported that the recent approval, which was granted on Monday, shows the asset manager's interest in expanding across the crypto-friendly area.
Charles Hatami, the Head of Middle East operations at BlackRock, noted that Abu Dhabi has become a global financial hub, saying “Its strategic location, proactive government policies, and commitment to sustainable growth make it an ideal location for capital markets.”
Though the asset manager has not elaborated its UAE plans in detail, one thing is sure: BlackRock aims to secure further approval in the Abu Dhabi Global Market (ADGM), which is home to several crypto and financial businesses like Laser Digital and Blockdaemon.
ADGM is “the first, world's first, purpose built framework for blockchain foundation, DAOs or web3 entities, that allows a lot of things, including fun stuff like token issuance,” Dmitry Fedotov, ADGM's Head of DLT Foundations Oversight, told Chainalysis.
It is clear that the UAE remains a digital finance leader, ranking third in Henley & Partners' crypto adoption index as of August 30. According to Statista, Dubai also took the lead as the top financial center across the Middle East and Africa as of September 2024, with Abu Dhabi coming second.
According to Chainalysis, the country's collaborative and proactive regulatory approach to web3 and crypto firms has gained the attention of users. It has also strengthened UAE's position as a DeFi and wider crypto hub.
Global crypto firms Binance, OKX, and Crypto.com have been licensed to operate in the country. With BlackRock's recent go signal from Abu Dhabi authorities, it is just a matter of time for more companies to follow suit.
