HomeBusinessWall Street giants split time between trillion-dollar golf hubs

Wall Street giants split time between trillion-dollar golf hubs

(Bloomberg) — Larry Fink of BlackRock Inc. was one of the headliners at the annual Davos-style investment conference in Saudi Arabia in October. Days later, he appeared on a social media post by Abu Dhabi’s $1.5 trillion man, Sheikh Tahnoon bin Zayed Al Nahyan.

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The $11.5 trillion asset manager that Fink manages recently received approval to set up its regional headquarters in Riyadh. It is also working with Abu Dhabi’s royal family on one of the largest efforts yet to finance the build-out of data warehouses and energy infrastructure.

The largest firms on Wall Street operate in different geographic areas, and top executives often fly to multiple countries while visiting a region. But Riyadh and Abu Dhabi, which are competing to become the Middle East’s top business hub, offer unique opportunities: The cities each hold more than $1 trillion in state assets, making them among the world’s largest sources of capital.

Sheikh Tahnoon – one of Abu Dhabi’s two deputy rulers, the United Arab Emirates’ national security adviser and brother of the president – ​​had conversations with many executives who also spoke at the FII, according to reports on the X Profile of the royal family.

That list included Morgan Stanley CEO Ted Pick, Blackstone Inc. CEO Steve Schwarzman. and Ruth Porat of Alphabet Inc., which is working with Saudi Arabia on an artificial intelligence hub. Meanwhile, Goldman Sachs Group Inc. CEO David Solomon also stopped by Abu Dhabi shortly after his company announced its new office in Riyadh, according to a person familiar with the matter.

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The two cities have launched a series of initiatives in their quest for greater global relevance. Riyadh is asking international companies to increase their local presence or risk losing sales. That has prompted the likes of General Atlantic and Goldman to strengthen their operations in the kingdom.

Others are reluctant to make Riyadh their main hub because their employees prefer the UAE lifestyle. To sweeten the deal, Abu Dhabi has also introduced a range of perks, including a lifestyle support program for new backers.

But many companies looking to raise money or close deals, driven by ambitious diversification programs, are trying to keep a foot in both camps.

For example, BlackRock said the new base in Riyadh will help the company expand its operations across the Middle East and not just the kingdom. Goldman maintains a significant presence in both Dubai and Abu Dhabi, and Barclays Plc, which is considering re-entering Saudi Arabia after a decade, said it plans to expand its team in the UAE as well.

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