Goldman, Carlyle Set to Follow BlackRock With Offices in #Kuwait - Bloomberg

Goldman, Carlyle Set to Follow BlackRock With Offices in Kuwait - Bloomberg

Goldman Sachs Group Inc. is among a cohort of financial firms planning to open offices in Kuwait, according to people familiar with the matter, in a boost to the OPEC member’s nascent efforts to position itself as a regional business hub.

Carlyle Group Inc., Franklin Templeton and State Street Corp. are also looking to set up local offices, the people said, asking not to be identified as the information is confidential. The moves follow BlackRock Inc.’s decision to open up in the country and would bolster Kuwait’s efforts to deepen its financial sector, which has lagged behind Dubai, Abu Dhabi and Riyadh in recent years.

The firms already count Kuwait as a client, and a physical presence would allow them to further strengthen ties with the government and its $1 trillion sovereign wealth fund. Some of those relationships were on display this week, when Goldman helped manage Kuwait’s first international bond sale in eight years.

The Wall Street firm has picked a recent hire — Mohammad Almatrouk, previously a managing director at Kuwait’s public pension fund — to run its local office, people familiar with the matter said.

Representatives for Goldman, State Street and Carlyle declined to comment. Franklin Templeton’s new office will initially support the firm’s institutional business and contribute to Kuwait’s Vision 2035 goals, the firm said in a statement.
Middle East Money

Global firms have been expanding across the Middle East, drawn by deep pools of sovereign capital, and wealthy families in the region who together control more than $1 trillion in assets. While that expansion has so far been focused on Saudi Arabia and the United Arab Emirates, Qatar has moved to lure firms in recent months.

Kuwait, despite ranking as one of the world’s richest countries per capita and boasting vast oil reserves, has been held back by years of policy paralysis and a raucous parliament that was often blamed for blocking economic development and reform.

Still, officials are now taking bolder steps to catch up.

Sheikh Mishaal Al-Ahmed Al-Sabah, Kuwait’s ruler, suspended parliament for four years in 2024, effectively clearing the way for the government — headed and appointed by the ruling family — to pass key bills and push reforms.

More recently, an official at Kuwait’s Direct Investment Promotion Authority said the country is committed to attracting “value-added direct investments, with a focus on developing national competencies and strengthening long-term partnerships.”

BlackRock, which has close ties with Kuwait, became the first mover last month by naming a country head and opening an office. The asset manager counts the $1 trillion Kuwait Investment Authority as one of its largest shareholders, and Chief Executive Officer Larry Fink typically visits the country annually.
In one sign of the importance of the Middle East, a pair of top Goldman executives called the region “one of the most important fundraising opportunities in the world.” The firm opened an Abu Dhabi office in 2023, and was the first bulge-bracket bank to get a regional headquarters license in Saudi Arabia.

Private equity giants like Carlyle have also been deepening engagement with Gulf sovereign funds by hosting workshops and launching training programs for local talent, Bloomberg News has reported.

State Street is looking to launch more exchange traded funds tracking Gulf capital markets, while Franklin has rolled out feeder funds in the UAE and struck deals to invest in Saudi stocks.