BlackRock's Larry Fink calls Abu Dhabi a key hub for global capital

US-based Polen Capital and private credit firm Golub Capital to open offices in Abu Dhabi Global Market

Larry Fink, chief executive of BlackRock. Reuters

BlackRock chief executive Larry Fink has said that Abu Dhabi is a "great place" to attract international capital and finance as the world's biggest asset manager readies to open an office in the emirate.

"Why we're opening an office right now in Abu Dhabi, and we intend to have tens and tens of people in our offices there, is because we look at it as a great place to attract international capital and finance and what we're doing together [in terms of] AI and decarbonisation," Mr Fink said in a pre-recorded interview played at the Abu Dhabi Finance Week event in Abu Dhabi on Monday.

Last month, BlackRock received a commercial licence to operate in Abu Dhabi, as the UAE capital emerges as a global hotspot for finance. The New York-based fund manager, which has nearly $11.5 trillion in assets under management, also plans to obtain regulatory authorisation to operate at Abu Dhabi Global Market (ADGM), the emirate's international financial centre.

Abu Dhabi, which is home to some of the world's largest sovereign wealth funds, has attracted several global financial institutions, asset managers, family offices as well as international funds over the past few years as the emirate becomes a destination of choice for global capital.

On Monday, US-based Polen Capital, which manages assets worth roughly $58 billion, announced that it would open an office in ADGM. Private credit manager Golub Capital, which has more than $70 billion of capital under management, also said it would open an office in the finance hub.

On Monday, CYVN Holdings, an investment vehicle based in Abu Dhabi, signed a partnership agreement with Bahrain’s sovereign wealth fund Mumtalakat Holding Company to acquire McLaren’s automotive business and a non-controlling stake in McLaren’s racing business. The acquisition follows an announcement of a potential partnership between Mumtalakat and CYVN Holdings in October this year.

"Despite all the uncertainty in the global economy, from geopolitics to demographic, technological and climate change, the long term prospects in this market remain very positive," Georges Elhedery, chief executive of HSBC said in a pre-recorded speech.

"Abu Dhabi is home to some of the world's largest sovereign wealth funds ... they have helped transform national wealth into a generational opportunity by providing capital for economic diversification and acting as a magnet for talent," Mr Elhedry said.

Visitors at Abu Dhabi Finance Week in Abu Dhabi. Antonie Robertson/The National

In October, Abu Dhabi was ranked as the world's top city for sovereign wealth fund capital, managing $1.67 trillion in assets, according to a report by industry specialist Global SWF. The UAE capital is home to major funds including Adia, Mubadala, investment and holding company ADQ, Abu Dhabi Fund for Development, Tawazun (including Edge) and the Emirates Investment Authority, it said.

Mubadala, with assets worth $302 billion spanning six continents continues to announce deals. Last week, it agreed to acquire a minority stake in US healthcare technology company Zelis, marking the Abu Dhabi sovereign investment arm's largest deal in the healthcare sector even as it focuses on investments in Asia. In November, it also acquired a 49 per cent stake in the oil country tubular goods (OCTG) business of Spanish industrial solutions firm Tubacex for $200 million.

ADQ is also boosting its portfolio globally. In August, the company said it will acquire a stake in Sotheby’s in a deal that will lead to about $1 billion being invested in the flagship auction house. It also bought a stake in Australia’s infrastructure developer Plenary Group, marking its entry into the country in April.

In October, its real estate unit Modon Holding struck a deal with the British billionaire Nick Candy to focus on delivering a portfolio of "extraordinary real estate developments" spanning high-end residential, commercial and hospitality sectors in the Middle East. In clean energy, Abu Dhabi's clean energy company Masdar has investments in a number of countries across the globe for the development of solar, wind and other projects.

The growing technology sector, which has been receiving a surge in investments, is also supporting the economy. Earlier this year, Microsoft announced a $1.5 billion investment in Abu Dhabi artificial intelligence and cloud company G42 to help it boost G42's global expansion plans.

The Abu Dhabi-based technology company MGX, BlackRock, Microsoft and Global Infrastructure Partners have also launched an AI infrastructure investment partnership that aims to mobilise up to $100 billion to enhance the future of AI.

On Monday, Mr Fink said that Abu Dhabi's abundant energy resources, including oil, gas, nuclear, solar, and wind, provide a solid foundation for artificial intelligence (AI) data centres, which require significant energy. "I believe AI is going to be the next industrial revolution, and Abu Dhabi [is] one of the innovative economies [in] how it's trying to position itself to be one of the magnets for AI research," he added.

Abu Dhabi's economy grew by an annualised 4.1 per cent in the second quarter of this year on the back of boost from the non-oil sector, the latest data from the Statistics Centre, Abu Dhabi show.