Emirates NBD, the leading Dubai-based banking group in the Middle East, North Africa and Turkey (MENAT) region, has signed a Memorandum of Understanding (MoU) with BlackRock to create an investment platform that will provide the bank’s wealthy clients with access to alternatives, particularly in private markets, Emirates NBD has reported.
Traditionally only available to institutional investors in the region, private markets represent the fastest growing asset management segment, with alternative assets expected to reach US$30 trillion by the end of the decade.
Evergreen offerings
Emirates NBD Asset Management and BlackRock will launch an initial range of evergreen offerings targeting income and growth strategies on an exclusive basis for the UAE wealth market. Alongside these strategies, BlackRock will adopt an open architecture approach to support Emirates NBD Asset Management’s plans to expand its offering in the private markets by providing additional services such as marketing, education, training and technology.
Through the Emirates NBD Asset Management platform, the long-term goal is to democratize the alternative asset space and offer Emirates NBD clients in the Middle East access to alternatives across all major asset classes. Marwan Hadi, Head of Retail Banking and Wealth Management at Emirates NBD, commented: “Innovation is a cornerstone of Emirates NBD and we are delighted to partner with BlackRock to offer access to best-in-class products in alternative markets through a dedicated platform, while supporting the growing needs of investors in the region. We are deeply committed to creating value through our offerings and developing the investment landscape in the UAE and beyond. a region that has seen strong appetite over the past few years.”
Private Markets Platform
Rachel Lord, Head of International at BlackRock, said: “We are delighted to partner with Emirates NBD as they build out their private markets platform. Driven by investor sentiment and driven by innovative products, technology and regulatory developments, capital allocation to private markets is forecast to grow significantly over the next five years. The combination of Emirates NBD’s distribution capabilities and regional reach, combined with BlackRock’s expertise and global leadership in private markets, will be a compelling proposition for Middle Eastern investors.”
The private markets offerings will be based on BlackRock’s alternative investment platform, which currently exceeds US$450 billion and is supported by more than 1,000 employees in over 50 countries. International players are rapidly entering the private credit space in the Middle East, partnering with private equity funds in the region, including Mubadala Investment Co., Abu Dhabi Investment Authority, ADQ and the Saudi Arabian Public Investment Fund.