BlackRock, a leading multinational investment firm and issuer of the spot Bitcoin exchange-traded fund (ETF), has obtained a commercial licence to operate in Abu Dhabi, signalling its intent to strengthen its foothold in the region. The approval, granted on November 18, underscores the firm’s interest in tapping into the UAE’s dynamic financial landscape.
BlackRock Pursuing a Role in Abu Dhabi’s Financial Hub
In addition to its commercial licence, BlackRock is seeking regulatory approval to operate within the Abu Dhabi Global Market (ADGM). This international financial hub has attracted numerous crypto-focused companies, including Blockdaemon, M2, and Laser Digital. While Abu Dhabi is renowned as a crypto-friendly destination, BlackRock’s immediate focus in the region appears to lie outside digital assets.
Charles Hatami, BlackRock’s Middle East head, emphasised the firm’s commitment to private markets and artificial intelligence (AI) infrastructure rather than digital currencies. Hatami described Abu Dhabi as a “global financial centre,” highlighting the government’s proactive policies and strategic growth initiatives as key drivers for investment.
BlackRock’s entry into Abu Dhabi aligns with the emirate’s growing focus on artificial intelligence. Earlier this year, tech giant Microsoft announced a $1.6 billion investment in G42, an Abu Dhabi-based AI holding company, to bolster AI innovation locally and globally. The company has since committed to establishing two AI centres in the capital, focusing on solving societal challenges and setting industry standards for responsible AI usage.
A New Milestone for BlackRock’s Bitcoin ETF
Beyond its Middle Eastern expansion, BlackRock continues to make waves with its flagship crypto product, the iShares Bitcoin Trust ETF. As of November 8, the ETF’s net assets surpassed $33 billion, overtaking the firm’s gold-focused iShares Gold Trust ETF. This development underscores growing investor interest in Bitcoin as a store of value and a portfolio diversifier.
Abu Dhabi’s latest collaboration with BlackRock reflects the UAE’s status as a global financial and technological hub. The nation ranked third globally in a crypto adoption index published by Henley & Partners on August 30, further solidifying its reputation as a leader in digital finance.
While BlackRock has yet to disclose specific plans for its UAE operations, its move signals a strategic alignment with the region’s ambitions in AI and finance. As Abu Dhabi continues to attract top-tier firms, its role as a global financial and technological powerhouse seems poised to grow.
