Blackstone, the world's biggest alternative asset manager, has announced one of the first investments into the UAE since the start of the Iran war, underpinning the continued investment momentum in the Arab world’s second-largest economy.
Blackstone is investing $250 million in Advanced Digital Gaming Technology (ADGT), a new platform that aims to build payments and compliance infrastructure for regulated digital markets globally, the company said in a statement on Thursday.
ADGT has been formed through a strategic partnership between Blackstone and Abu Dhabi-based investment company Raya Holding and their technology partners – NRT Technology and Sightline Payments.
“We see significant opportunity to deploy capital at scale in the UAE to build companies that can grow both domestically and internationally, despite near-term headwinds,” said Jon Gray, president and chief operating officer at Blackstone.
“The UAE is a global leader in travel and leisure, with emerging strength in technology, and we are excited to support ADGT to capitalise on these powerful trends.”
Headquartered in Abu Dhabi, ADGT plans to initially focus on the UAE, markets in the broader Middle East and Africa region, and select international corridors.
In the UAE, ADGT is already the premier payments and compliance technology provider to the commercial gaming market, which Blackstone said, is set to become one of the fastest-growing regulated markets globally.
ADGT is currently the only licensed platform able to contract directly with both land-based venues and online digital platforms, it added.
Expanding presence
Private equity companies, including KKR Carlyle and global asset managers, have expanded their presence in the Gulf region, especially in the UAE amid rapid economic growth. Inward investment into the UAE has consistently grown over the past few years. However the war, which broke out on February 28, raised doubts over continued dealmaking.
The UAE has taken the brunt of the war triggered by the US and Israel’s bombardment of Iran. Tehran has expanded the scope of the war with retaliatory strikes on its Arab neighbours and has closed the Strait of Hormuz effectively for all but a few commercial vessels.
Vault22, a Dubai-based AI-powered wealth platform backed by Standard Chartered Ventures and Franklin Templeton, also launched in the UAE this week, adding to a stream of financial technology deals that have continued despite the conflict.
However, the latest commitment from Blackstone underpins the continued inward investment momentum for the country, driven by its long-term economic fundamentals.
“With a progressive regulatory framework and strong institutional support, the UAE continues to create an environment where global technology platforms can be built and scaled,” said Sheikh Mohammed bin Sultan, who heads Raya Holding.
“From Abu Dhabi, we are developing a platform designed not only to serve the UAE, but to support the evolution of regulated digital markets globally.”
Deals spree
Blackstone, which manages $1.3 trillion in assets, invests in sectors including property, private equity, credit, infrastructure, life sciences, growth equity and hedge funds.
The firm, which has maintained a presence in the UAE since 2010, partnered with Abu Dhabi-based Lunate in October to invest in regional logistics assets and create a platform dedicated to the sector's development across the Gulf region.
The two companies have established Gulf Logistics Infrastructure Development Enterprise (Glide), which aims to target $5 billion worth of top-quality assets in the six-nation bloc, they said at the time.
Glide aims to develop, acquire and manage grade-A logistics assets and is expected to team up more partners. Blackstone is the largest owner of logistics assets globally, covering about 1.2 billion square feet (111.5 million square metres).
In September last year, Blackstone also teamed up with global private equity firm Permira to invest $525 million in Dubai-based Property Finder.
