Goldman Sachs moves past 1MDB scandal with new office in Abu Dhabi

By Nicolas Parasie

Goldman Sachs Group Inc. is set to open an office in Abu Dhabi, marking a significant step for the US lender that was snubbed by the emirate for its involvement in the 1MDB scandal. 

Goldman Sachs’s new outpost will open in Abu Dhabi Global Market, pending final regulatory approval, according to an internal memo seen by Bloomberg News. The office will add to the bank’s hubs in Dubai, Doha and Riyadh and allow it to deepen relationships with clients, according to the memo.

A representative for the bank confirmed the contents of the memo.

Goldman Sachs had been the go-to bank for many of Abu Dhabi’s top dealmakers, but the fallout from the 1MDB corruption scandal marked its abrupt downfall in the emirate, once one of its most lucrative markets in the region. 

The bank missed out on billions of dollars of deals after being sued by two of its investment funds, but has since been able to draw a line under the scandal. Goldman Sachs was a joint bookrunner on the listing of the state-owned oil firm’s drilling business, which was at the time Abu Dhabi’s largest-ever initial public offering. 

The firm said last year it plans to expand across the Middle East as growing foreign interest and positive economic factors prompt a boom in dealmaking and a flow of funds into the region.