BlackRock and Emirates NBD, a leading Dubai-based bank, are developing a new platform to simplify access to growing private markets for investors in the Middle East.
Collaboration between BlackRock and Emirates NBD
The product will provide Emirates NBD’s high-net-worth clients access to private loans and other assets. It will be built on BlackRock’s Alternative Investments platform, which manages over $450 billion in assets. Previously only open to institutional buyers in the region, private markets are now the fastest-growing part of asset management.
BlackRock’s Focus on Private Markets in the Arab World
Emirates NBD Asset Management and BlackRock will launch the first evergreen products for the UAE wealth market, specifically designed to assist with income and growth plans. BlackRock will utilize its open architectural approach to aid Emirates NBD in offering more private market services, adding marketing, education, training, and technology. Rachel Lord, Head of International at BlackRock, expressed delight in the partnership, noting that it would significantly increase wealth allocations to private markets over the next five years.
Financial Context for Private Markets
Globally, banks lend about 22% of their loans to small and medium-sized businesses, whereas GCC banks provide less than 2% of their loans to such businesses. Meanwhile, large government construction projects require significant capital, reducing bank liquidity. This creates opportunities for private credit, which is more flexible and offers better financing terms than standard bank financing for startups.
The partnership between BlackRock and Emirates NBD strengthens both companies' positions in the private capital market, providing new investment opportunities in the Middle East.
