Blackrock Inc. and Emirates NBD Collaborate on Private Market Access

Blackrock Inc. and Emirates NBD, a leading bank in Dubai, are creating a new platform aimed at facilitating investor access to burgeoning private markets in the Middle East.

The innovative product will allow Emirates NBD’s high-net-worth clients to invest in private loans and other assets, utilizing BlackRock’s Alternative Investments platform, which oversees more than $450 billion in assets and is supported by over 1,000 personnel across 50 countries.

Emirates NBD Overview

Emirates NBD stands as one of the largest banks in the MENAT (Middle East, North Africa, and Turkey) region, maintaining a presence in 13 countries and boasting over 9 million registered customers. As of December 31, 2024, its total assets amount to $271 billion.

Marwan Hadi, Group Head of Retail Banking and Wealth Management at Emirates NBD, stated, “Innovation is a cornerstone at Emirates NBD, and we are pleased 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.” He reiterated the bank’s commitment to enhancing investment in the UAE and surrounding areas.

BlackRock’s Focus on Private Markets

Private markets, once exclusive to institutional investors, are currently the fastest-growing segment in asset management. Predictions indicate that alternative assets could reach a valuation of $30 trillion by the decade’s end.

Emirates NBD Asset Management and BlackRock will introduce the first evergreen products aimed at the UAE wealth market to address income and growth objectives. BlackRock plans to leverage its open architecture approach to assist Emirates NBD Asset Management in enhancing its private market services through marketing, education, training, and technology.

Rationale for Middle East Focus

The Middle East boasts a robust demand for private credit, attracting numerous international players. Rachel Lord, Head of International at BlackRock, expressed excitement about the partnership, noting the anticipated increase of wealth allocations to private markets driven by investor sentiment and product innovation.

Financial Landscape of Private Markets

Globally, banks allocate about 22% of their total loans to small and medium-sized enterprises (SMEs), while Gulf Cooperation Council (GCC) banks lend less than 2%. This disparity indicates an unmet need in the market for accessible financing for growing businesses.

Accessing private credit offers advantages such as ease of access, privacy, flexibility, and better capital terms compared to traditional financing, allowing entrepreneurs to maintain equity as they transition from startup funding to bank financing.

The private credit market has seen a surge of interest from global companies, with notable partnerships like Chimera’s $2 billion deal with Alpha Wave and the emergence of Lunate, an alternative asset manager. Mubadala, the largest player, has forged significant partnerships, committing over $5 billion to private loans in the UAE and beyond. New entities are entering the asset class, positioning this partnership as a formidable addition to the evolving market.