BlackRock scouts office space in Kuwait amid inflow of wealth

The Kuwait Investment Authority is one of BlackRock's largest investors and CEO Larry Fink visited the country on Monday to meet the Emir

While hedge funds, law offices and wealth managers are pouring into Saudi Arabia and the UAE, other parts of the Gulf are also attracting interest from international businesses.

BlackRock, for one – the world’s largest asset manager, with holdings of about $11.5 trillion – is scouting office space in Kuwait City as it tries to deepen ties in the region, Bloomberg reports.

The New York-based firm is in discussions with Kuwaiti regulators and could make a final decision as soon as this month, according to the news outlet, which said BlackRock declined to comment.

Kuwait’s state-run KUNA news agency, meanwhile, reported that BlackRock CEO Larry Fink was in Kuwait on Monday and met with Emir Sheikh Mishaal Al-Ahmed Al-Sabah.

BlackRock has close links to Kuwait, whose sovereign wealth fund, the $1 trillion Kuwait Investment Authority, is one of its top shareholders.

Elsewhere in the Gulf, London-based private equity firm Permira plans to open an office in Dubai, issuing a statement on Mondeay that said it will seek fresh strategic partnerships with institutional and private wealth investors in the region.

Permira’s new representative office in Dubai’s financial center is still subject to regulatory approval. Among the major draws to the region are the Gulf’s sovereign wealth funds that control roughly $4 trillion in assets.

Private wealth is also an attraction. Dubai is now home to family offices that control more than $1 trillion in assets, according to Bloomberg.

Saudi Arabia has persuaded hundreds of companies to establish regional headquarters in the kingdom by making it a prerequisite for winning government contracts.

Speaking at the World Investment Conference in November, Saudi Investment Minister Khalid Al-Falih said more than 550 firms had complied with the regulation, pointing to announcements the previous week by Citibank and Morgan Stanley on their expanded Saudi offices.

Setting up headquarters in Saudi Arabia comes with perks, including a 30-year exemption from corporate income tax and access to discounts and support services.

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