- Goldman Sachs is preparing to establish a presence in Abu Dhabi, a significant move for the US bank. According to an internal memo viewed by Bloomberg News, the new office will be located in Abu Dhabi Global Market, subject to final regulatory approval. The memo stated that the addition of this office will enhance the bank's connections with clients and supplement its existing hubs in Dubai, Doha, and Riyadh.
- Abu Dhabi's leading dealmakers previously relied on Goldman Sachs, but the bank's relationship with the emirate was tarnished by the 1MDB corruption scandal, resulting in a significant loss in business. However, Goldman Sachs announced plans last year to broaden its presence in the Middle East due to an increase in foreign investment and favorable economic conditions driving dealmaking and investment flows in the region.
Why it matters
Goldman Sachs lost out on billions of dollars in deals due to lawsuits from two of its investment funds. However, the bank has since put the scandal behind it. Goldman Sachs served as a joint bookrunner for the initial public offering of Abu Dhabi's state-owned oil company's drilling business, which was the largest-ever in the region at the time.