Happy Thursday everyone!

Institutional wealth managers, global investment strategists, and workplace technology providers mark major business developments across the Middle East. US asset manager Capital Group secured a license from the Abu Dhabi Global Market’s Financial Services Regulatory Authority to launch asset management operations. In market strategy, BlackRock highlighted Saudi Arabia as a primary regional investment target, pointing to traditional infrastructure, defense, and private credit demands. Meanwhile, Workday opened its Dubai Internet City office alongside research showing UAE workers save 3.6 hours weekly using artificial intelligence but spend 3.4 hours correcting output errors.

Markets

Capital Group Obtains ADGM License to Launch Regulated Operations in Abu Dhabi

🔹 What Is It About 

US asset manager Capital Group, managing $3.6 trillion in assets globally, received a Financial Services Permission from the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority. The license permits the firm to conduct asset management, trading, and investment advisory activities directly from its new Middle East office in Abu Dhabi. Capital Group relocated staff across investment, operations, and client services to establish its first physical regional hub in the UAE capital.

• Securing FSRA License: Capital Group obtained regulatory approval to operate as a full-service investment manager in ADGM.

• Managing $3.6T Globally: The firm brings its $3.6 trillion asset management capabilities to institutional clients across the Middle East.

• Establishing Regional Hub: Capital Group relocated international staff from North America, Europe, and Asia to staff the Abu Dhabi office.

🔹 Why It Matters 

Establishing a licensed base in ADGM allows global asset managers to source capital directly from regional sovereign wealth funds and institutional investors. Moving trading and portfolio management teams to Abu Dhabi highlights the city's role as an international hub for institutional capital. Expanding licensed fund managers increases local liquidity and broadens investment options across regional capital markets.

🔹 What’s Next 

Capital Group executive leads will scale up client-facing operations and expand local team hiring as client demand grows. Regional portfolio managers will evaluate distribution partnerships with institutional investors across the GCC.

• Hiring Local Teams: HR departments will expand headcount across investment, research, and client support divisions.

• Distributing Fund Products: Sales leads will roll out institutional investment strategies to regional institutional partners.

BlackRock Highlights Saudi Infrastructure and Private Credit as Top Investment Priorities

🔹 What Is It About 

Global asset manager BlackRock identified Saudi Arabia as a primary regional investment target, citing its multi-billion-dollar project pipeline across defense, traditional infrastructure, and energy pipelines. BlackRock Investment Institute strategist Ben Powell noted that economic reforms—including non-Saudi property rights and Tadawul foreign investment rules—support private capital deployment. The firm highlighted growing roles for private credit and energy-backed AI data centers as Saudi Arabia works toward attracting $100 billion in annual foreign direct investment by 2030.

• Targeting Project Pipelines: BlackRock highlighted infrastructure, defense, and oil pipeline projects as primary investment drivers.

🔹 Why It Matters 

Highlighting Saudi infrastructure projects signals that international asset managers remain focused on long-term capital deployment in the Kingdom. Expanding private credit options gives state-backed developers alternative financing choices alongside domestic bank loans. Directing capital toward defense, pipelines, and data centers ensures essential energy and technology projects remain funded during shifting market cycles.

• Diversifying Financing Sources: Private credit provides alternative funding structures for large-scale infrastructure builds.

🔹 What’s Next 

BlackRock investment teams will deploy capital into regional infrastructure equity and private credit vehicles. Saudi financial regulators will continue issuing secondary rules for foreign property ownership and privatization tenders to attract international bids.

• Finalizing Property Rules: Regulatory agencies will issue detailed guidelines governing foreign property ownership.

Workday Opens Dubai Office as Study Shows UAE Workers Spend 3.4 Hours Fixing AI Errors

🔹 What Is It About 

Enterprise software firm Workday opened its new office in Dubai Internet City alongside research assessing artificial intelligence usage across the UAE. The Workday report revealed that while 90% of UAE employees use AI weekly to save an average of 3.6 hours, workers spend 3.4 hours weekly reviewing, correcting, or rewriting low-quality output. Despite the time lost on error correction, 33% of UAE companies use AI to handle larger workloads, while 32% redirect time saved into employee training.

• Opening Dubai Office: Workday established a permanent regional headquarters inside Dubai Internet City.

• Tracking Time Savings: UAE staff save 3.6 hours weekly using AI tools but spend 3.4 hours correcting output errors.

• Reinvesting Efficiency Gains: Companies deploy AI time savings into upskilling programs and managing heavier workloads.

🔹 Why It Matters 

High adoption rates combined with time spent correcting output show that enterprise AI deployment requires oversight and staff training to deliver actual productivity gains. Redirecting efficiency gains into employee training helps firms upskill teams rather than relying solely on headcount cuts. Workday expanding its local presence positions the firm to sell enterprise HR and finance software directly to Gulf businesses adopting workplace automation.

🔹 What’s Next 

Workday sales leads in Dubai will deploy enterprise HR and finance platforms tailored for GCC businesses. Enterprise IT directors will implement quality control workflows to reduce error rates and improve output quality from automated software.

👨‍💻From Smashi Business’ Desk

• Emirates NBD customers are reporting disruption to the ENBD X app, with some saying they can't deposit money and that the problems have lasted several days.

• Dubai-born fragrance brand KAYALI will enter China on October 15.

• Saudi-born dining platform SPICE has ruled out offering cashback on shisha or alcohol at partner restaurants as it keeps its rewards model aligned with Islamic principles.

• Uber will invest $50 million in Jordan over the next three years, targeting the country’s mobility ecosystem while supporting economic opportunities, tourism and access.⁠

• Dubai Crown Prince HH Sheikh Hamdan just shared his Etihad Rail ticket on Snapchat as Dubai-Abu Dhabi passenger services prepare to launch on September 30.

🔍In other news…

• Rolls-Royce signs first Saudi licence for high-speed engines

• Man City appeal Premier League financial ruling

• UAE and Oman earn oil revenue windfall from Iran war

• Mena sovereign investment set to fall from 2025 peak

• Saudi Arabia planning Oman pipeline, says Total CEO

🦄 World of Startups

• Echelon: Riyadh AI firm Echelon names East40, RAED Ventures, Avra and Ben Horowitz as backers.

• MNT-Halan: MNT-Halan prices its EGX IPO at EGP 24.50 per share, valuing the 20% stake at EGP 7.84 billion.

• Project Suppliers: Saudi platform Project Suppliers raises $1 million in pre-seed funding to develop AI cash-flow tools.

• MoneyHash × VaultsPay: MoneyHash merchants can now accept VaultsPay’s UAE card and wallet payments without separate integration.

• TiE Women MENA: Five startups win regional TiE Women MENA tracks and advance to the GITEX Global final.

• Sheraa × Nestlé UAE: Sheraa, Nestlé UAE, MAJRA and UAE Food Cluster launch a three-month programme for young founders.

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