Aiming to also obtain a licence to operate in the Abu Dhabi Global Market (ADG), which is an international financial hub, BlackRock plans to grow its contribution in the crypto-friendly region. By securing this licence, the company works towards solidifying and deepening its engagement with Abu Dhabi’s sovereign wealth funds, wealth managers, and investment vehicles, centring on areas such as AI infrastructure and sustainable investment solutions.
The current announcement comes after BlackRock introduced its retirement income solution, LifePath Paycheck, in defined contribution plans. The solution was set to deliver a new method for retirement income, providing assured funds through target date funds, an investment strategy that automatically adjusts to a targeted retirement year. Participants could access this income from age 59 via annuity contracts from Equitable and Brighthouse Financial.
According to a statement provided to Bloomberg, BlackRock intends to focus on private markets and AI infrastructure, with the move falling in line with larger AI investments in Abu Dhabi. However, at the time announcement, the company did not provide any details on its plans for the UAE beyond securing a licence to operate in the region. In addition, officials from BlackRock mentioned that Abu Dhabi now positions itself as a global financial centre, with them highlighting the region’s government for being proactive and committed. BlackRock’s expansion into Abu Dhabi can be attributed to the region’s strategic location, optimised government policies, and allegiance to sustainable growth, which makes it fitting for capital markets.
Furthermore, UAE recently announced that cryptocurrency transactions were set to be exempt from value-added tax as of 15 November 2024. The policy changes also applied retroactively to transactions from 1 January 2018. The exemption explained that digital assets, including the exchange and transfer of ownership of cryptocurrencies, would not be subject to the standard 5% VAT.
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