BlackRock steps up Gulf investment
The world's largest asset manager is investing and hiring more in the region, and estimates $50 billion to $100 billion of Gulf money that would have gone abroad could be spent locally.
BlackRock, the world's largest asset manager, is intensifying its investment efforts in the Gulf region, aiming to capitalize on the vast state wealth of the area following the ongoing Iran conflict. Despite the region remaining in a state of uncertainty, BlackRock's chief investment strategist for the Middle East and Asia-Pacific, Ben Powell, remains confident in the region's potential for growth.
Powell attributes this confidence to the stability and positive business environment in the Gulf, citing factors such as human capital, financial capital, and energy resources. He anticipates that the region will continue to be a significant exporter of capital, with potentially $50 billion to $100 billion of Gulf state investments staying within the region over the next decade.
This shift is driven by the Gulf states' strategic capital spending of $2.1 trillion through 2030, with a focus on societal and economic resilience in energy, infrastructure, and AI sectors. BlackRock's Global Infrastructure Partners is also part of a $30 billion infrastructure partnership in Abu Dhabi, expanding its footprint in the region alongside other global investors.
Despite record flows of capital into Gulf sovereign wealth funds, BlackRock remains cautious, emphasizing the need for redundancy in the face of rising global geopolitical tensions.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
