BlackRock, the world's largest asset manager with over $11 trillion in assets, has secured a commercial license to operate in Abu Dhabi, enhancing its regional presence.

This expansion follows BlackRock's announcement of a new investment platform in Saudi Arabia, backed by up to $5 billion from the country's Public Investment Fund (PIF).

The firm's strategy includes establishing a regional headquarters in Riyadh, reflecting its commitment to expanding operations in the Middle East.

To bolster its leadership in the region, BlackRock appointed Mohammad AlFahim as head of its UAE operations and Ben Powell as Chief Middle East and Asia Pacific Investment Strategist.

BlackRock aims to strengthen relationships with Abu Dhabi's sovereign wealth funds and focus on investments in AI infrastructure and sustainable projects.

Both Abu Dhabi and Riyadh are competing to become the primary business centers in the Middle East, each controlling significant sovereign wealth.

This dual expansion reflects a broader trend of increasing competition for global capital as both the UAE and Saudi Arabia pivot towards diversified economies.

Charles Hatami, BlackRock's Middle East head, highlighted Abu Dhabi's emergence as a global financial hub, supported by favorable government policies.

BlackRock has initiated partnerships with local entities, including a collaboration with Sheikh Tahnoon bin Zayed Al Nahyan for critical infrastructure investments.

The firm is also pursuing regulatory approval to operate within the Abu Dhabi Global Market (ADGM), a key international financial hub.

BlackRock's strategy positions it to outpace competitors like Vanguard and State Street, who have yet to establish significant operations in the Gulf Cooperation Council (GCC).

This move aligns with other significant investments in AI in Abu Dhabi, including Microsoft's plans to establish AI centers in the region.