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[BUSINESS] · China, Saudi Arabia, United Arab Emirates, Qatar · 4 sources

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Middle Eastern sovereign wealth funds drive 190% surge in China investments

Sovereign wealth funds have significantly increased their investments in mainland China and Hong Kong, with inflows reaching $14.2 billion during the first nine months of 2026. This represents a 190% increase compared to the total investment recorded throughout 2025, a year that saw a 54% decline due to geopolitical tensions and economic concerns.

Middle Eastern investors are the primary drivers of this resurgence, accounting for nearly 70% of the total sovereign inflows. Saudi Arabia’s Public Investment Fund led the group with $6 billion, followed by the Abu Dhabi Investment Authority with $2.5 billion. Other significant contributors include Abu Dhabi’s Mubadala, which invested $800 million, and the Qatar Investment Authority, which contributed $600 million.

Investors are increasingly targeting sectors such as biotechnology, advanced manufacturing, consumer businesses, and artificial intelligence. Specific activities include Mubadala’s minority stake in Luckin Coffee and participation in Alibaba’s share offering by the Qatar Investment Authority and Norway’s sovereign wealth fund. Analysts suggest that lower valuations and China’s established manufacturing and research infrastructure are making the market increasingly attractive.

Entities

Abu Dhabi Investment Authority · China · Mubadala · Public Investment Fund · Qatar Investment Authority

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