American multinational investment firm BlackRock, after consolidating its operational presence in India and China for more than a decade, now eyes partnering with sovereign wealth funds (SWFs) across the Gulf region to ramp up investments in this part of the world.
Ben Powell, Chief Strategist for Middle East and Asia Pacific at the BlackRock Investment Institute, told Zawya that the world’s largest asset manager was “very open-minded” about co-investment opportunities with SWFs in the region.
“We are driven by opportunity, and as the world’s largest investor, we see an advantage over many of our competitors in terms of reach and scale. So, we are very open-minded about increasing our focus on Asian markets. As many know, the India bull story is very real, and we want to be a part of this, be it through co-investments or joint ventures from the region,” Powell told Zawya on the sidelines of the Abu Dhabi Finance Week (ADFW).
With USD 13.52 trillion in assets under management (AUM), BlackRock has expanded its network in the Gulf region over the past two years with the set-up of its regional headquarters in Riyadh in 2023, following the launch of an investment platform with the help of a USD 5 billion anchor investment from the Kingdom’s Public Investment Fund (PIF). In 2024, the Larry Fink-backed fund manager was granted a commercial license to operate in Abu Dhabi, and since then, the venture has expanded its headcount in Riyadh and Dubai, along with opening offices in Kuwait and Qatar.
“The UAE and Saudi Arabia are at the core of deepening the importance of capital markets in the region, and it is increasingly clear the regulatory efforts are very strong in establishing these places as a regional hub, and maybe in time, as a global hub for capital,” Powell remarked.
BlackRock is already looking to double its investments in the Gulf country by 2030, with current investments in the Kingdom standing at USD 35 billion, as the administration accelerates its socio-economic diversification under the ambitious “Vision 2030” agenda.
BlackRock’s 2026 outlook for the Gulf region calls for a push for investments in domains like artificial intelligence (AI) and infrastructure development. While energy remained an important sector in the Middle East for now, Powell said the AI “mega boom” will continue to gather momentum in the coming years. In 2024, BlackRock partnered with Microsoft and launched a USD 30 billion fund to invest in AI infrastructures such as data centres and energy projects. As per the stakeholders, the partnership will likely mobilise up to USD 100 billion in total investment potential, including debt financing.
According to Powell, there is increased potential in tech firms tapping into capital markets to fund the next phase of AI expansion, with a specialised focus on the build-out, as the latter is going to be necessary to help more individuals and companies drive productivity gains.
“This is where the money is flowing and will build up to be a mainstream asset class over the next few years,” the senior official concluded.