Emirates NBD and BlackRock Expand Strategic Partnership with Two New Income-Focused Funds

Emirates NBD Asset Management and BlackRock have expanded their strategic partnership with the launch of two income-focused funds targeting retail investors in the Middle East. By transitioning institutional-grade strategies into public fund structures, the move signals a significant push to democratise sophisticated alternative investments and systematic yield-generating solutions across the MENATSA region.

What was announced

Emirates NBD Asset Management and BlackRock have introduced two new funds, the FundStar Emirates CLO AA Fund and the Emirates Systematic Income and Growth Fund. This launch marks the first anniversary of a strategic partnership that began in 2025. While the initial phase of the collaboration focused on providing professional clients with access to private assets, this new stage transitions those institutional-grade strategies into public fund structures. This shift is designed to make sophisticated investment vehicles accessible to a wider retail investor base across the Middle East, North Africa, Türkiye and South Asia (MENATSA).

The partnership has already seen significant traction, securing USD 350 million in Assets Under Management (AUM) within its first year. The FundStar Emirates CLO AA Fund is sub-managed by BlackRock and focuses on floating-rate income. It invests in a portfolio of senior secured corporate loans across the United States and Europe, specifically targeting an average credit rating of AA. The fund is designed with daily liquidity and contains no sub-investment-grade exposure or leverage. It draws upon BlackRock’s 24-year track record in the CLO space, where the firm manages over USD 40 billion.

The second offering, the Emirates Systematic Income and Growth Fund, utilizes a benchmark-unconstrained approach to generate yield from globally diversified assets. While Emirates NBD Asset Management handles the ongoing portfolio management, BlackRock serves as the investment advisor, providing systematic investment insights. This fund targets a 7% distribution net of fees, which is intended to be paid to investors on a quarterly basis.

"One year ago, we partnered with BlackRock to redefine how wealth investors in the Middle East access institutional-grade strategies. The success of this initiative in the first 12 months reflects the immense appetite in our region for sophisticated, yield-generating solutions. With the launch of these two new offerings, we are fulfilling our commitment to democratise premium global investments by delivering innovative wealth solutions that empower our clients to build resilient, income-generating portfolios aligned with their long-term financial goals."

Michail Samawi, Senior Executive Officer, Emirates NBD Asset Management

The companies involved

Emirates NBD Asset Management is the asset management division of Emirates NBD, a major banking group operating across the Middle East, North Africa, Türkiye, and South Asia. The firm focuses on providing regional investors with tailored wealth solutions and access to global markets. As part of a larger banking group, it benefits from a deep understanding of local regulatory environments and client needs in the Gulf and surrounding regions.

BlackRock is a global leader in investment management, risk management, and advisory services. The firm is particularly known for its risk management technology and its role in managing trillions of dollars for institutional and retail clients worldwide. In the Middle East and Africa, BlackRock’s wealth and global product solutions team works to integrate global capabilities into local market structures, often through strategic partnerships with regional financial institutions. The firm maintains a significant global presence, providing a wide array of products across all asset classes, including a long-standing expertise in Collateralised Loan Obligations.

What FF News has reported before

FF News has previously covered BlackRock’s efforts to integrate its technology and investment strategies with other market participants. We reported that OTCX Launches Integration with BlackRock’s Aladdin for Interest Rate Swap Trading, which highlighted the firm's influence on institutional trading infrastructure. Additionally, the firm’s expansion into the digital asset space was noted when Ondo Finance and BlackRock Launch Tokenized Intelligent Portfolios for Onchain Investors. These stories reflect BlackRock’s broader strategy of utilizing its Aladdin platform and investment expertise to power diverse financial products, ranging from interest rate swaps to onchain tokenized portfolios, across various global jurisdictions.

What this means

This expansion highlights a growing trend in the wealth management sector: the "retailisation" of complex alternative assets. By bringing CLO and systematic income strategies to a broader base, Emirates NBD is putting pressure on regional competitors to match the depth of global expertise provided by partners like BlackRock. The move suggests that the appetite for yield in the MENATSA region is outstripping traditional fixed-income products. However, it raises questions for the industry regarding how effectively retail investors can navigate the nuances of floating-rate corporate loan portfolios, even those with high credit ratings and daily liquidity. This shift toward institutional-grade retail products may force a broader re-evaluation of risk disclosure and investor education across the regional market.