Emirates NBD Asset Management and BlackRock have launched two income-focused investment funds, expanding their strategic partnership to a broader range of UAE retail and wealth management clients.
Announced on October 20, 2026, the launch follows the partnership's first year, during which it attracted US$350 million in assets under management.
The collaboration began in March 2025 with a platform designed to provide professional investors access to private credit and alternative investments. Its latest expansion introduces public fund structures aimed at investors seeking regular income and international diversification.
Two Funds, Different Sources of Income
The FundStar Emirates CLO AA Fund, sub-managed by BlackRock, invests in investment-grade collateralized loan obligations (CLOs) backed by senior secured corporate loans across the United States and Europe.
The fund targets an average portfolio credit rating of AA, excludes sub-investment-grade exposure and offers daily liquidity without using leverage to enhance returns. Its floating-rate structure means income can adjust as underlying interest rates change.
The Emirates Systematic Income and Growth Fund, meanwhile, invests across globally diversified income-producing assets using a flexible, benchmark-unconstrained strategy.
BlackRock acts as investment adviser, while Emirates NBD Asset Management oversees portfolio management.
The fund targets 7% annual distributions net of fees, paid quarterly. However, the target is not a guaranteed investment return, and distributions should not be confused with capital appreciation.
Emirates NBD-BlackRock Fund Comparison
Source: Emirates NBD Asset Management, October 20, 2026.
What Does This Mean for UAE Investors?
The development reflects growing competition among UAE financial institutions to offer sophisticated investment strategies previously concentrated among institutional and high-net-worth investors.
For Emirates NBD, the partnership combines its regional distribution network with BlackRock's international investment capabilities, particularly in credit and systematic portfolio management.
Unlike exchange-traded funds, neither newly launched product has been announced as an exchange-listed ETF. Investors access the funds through Emirates NBD's retail and wealth management channels rather than buying them directly on ADX or DFM.
The distinction matters for investors comparing traditional funds and ETFs, particularly regarding pricing, dealing arrangements, investment minimums and liquidity.
The broader significance is the shift toward making institutional-style income strategies accessible to a wider UAE investor base.
With US$350 million already attracted through the partnership, Emirates NBD and BlackRock are positioning themselves to capture growing regional demand for professionally managed income investments beyond conventional deposits and publicly traded bonds.
