#AbuDhabi Wealth Funds Weigh New Entity for China Investment Strategy - Bloomberg #UAE

Abu Dhabi Wealth Funds Weigh New Entity for China Investment Strategy - Bloomberg

Abu Dhabi is considering plans to consolidate Chinese assets housed within two of its wealth funds under a new entity, setting the stage for a radical overhaul of its investment strategy for the world’s second-largest economy.

The proposed investment vehicle will be jointly owned by the two wealth funds, L’imad Holding Co. and Mubadala Investment Co., according to people familiar with the matter. This would help avoid multiple Abu Dhabi vehicles competing for the same deals as the emirate looks to boost its exposure to China, the people said, declining to be identified discussing confidential information.

Details on structure and strategy are still under discussion, and no final decisions have been made on the consolidation. Representatives for Mubadala declined to comment, while Abu Dhabi’s ministry of foreign affairs and the emirate’s media office didn’t respond to requests for comment.

Such a move would bring a critical economic relationship under the ambit of two influential names within Abu Dhabi’s circles of money and power.

L’imad is overseen by Abu Dhabi’s Crown Prince, Sheikh Khaled bin Mohammed, a son of United Arab Emirates President Sheikh Mohammed bin Zayed who has taken on more prominent national security and economic roles over the past year. Mubadala is helmed by Khaldoon Al Mubarak, who has handled key relationships for Abu Dhabi, including China, for years.

Al Mubarak was among executives who accompanied the crown prince to China this week for meetings with President Xi Jinping.

L’imad has exposure to China via sovereign investor ADQ, which it absorbed this year, while Mubadala has deployed over $20 billion across more than 100 investments in China since 2015. The two entities have close links — Al Mubarak and his deputy at Mubadala are both part of L’imad’s board.

Abu Dhabi, home to about $1.8 trillion in sovereign wealth, has emerged as one of the world’s most consequential investors in recent years. Its funds — which also include the Abu Dhabi Investment Authority — have historically skewed toward the US and Europe. The city has committed to invest over a trillion dollars to America and tens of billions more to countries like France and Italy.

Ties with China have deepened in parallel, despite unease in Washington over some deals. Non-oil trade between the two nations surpassed $100 billion for the first time in 2025.

Earlier this year, Al Mubarak said Mubadala had historically been under-invested in Asia but is now expanding its footprint, citing strong performance in South Korea, Japan and China in 2025. The push aligns with the $385 billion fund’s plan, laid out in 2024, to double Asia exposure to about 25% by the end of the decade.

The crown prince’s visit came amid a two-week ceasefire between the US and Iran in a war that saw the UAE bear the brunt of the Islamic Republic’s attacks.

But the conflict hasn’t slowed Abu Dhabi’s appetite for dealmaking, and key entities have deployed billions across alternative asset managers, private credit, technology platforms and hospitality. This week, L’imad struck a $2.3 billion deal in Jordan, underscoring its role in advancing the emirate’s strategic relationships.

L’imad, which means “the pillar” in Arabic, made headlines last year after joining influential Gulf funds in backing Paramount Skydance Corp.’s hostile bid for Warner Bros. Discovery Inc. Abu Dhabi has also folded into it the owner of McLaren Automotive and its stake in Chinese electric-vehicle maker Nio Inc.

The fund’s board includes senior Abu Dhabi executives like Jassem Al Zaabi — viewed by some as one of the emirate’s most influential non-royals — though it is still being built from the ground up.

Mideast Stocks: #UAE stocks gain on hopes of US-Iran peace talks; #Dubai at 6-week high

Mideast Stocks: UAE stocks gain on hopes of US-Iran peace talks; Dubai at 6-week high

UAE stock markets ended higher on Friday, gaining for the second week, with Dubai at ​a six-week high ⁠and outperforming its regional peer Abu Dhabi, on prospects of peace ‌in the Middle East. U.S. and Iran are likely to hold peace talks over ​the weekend in Pakistan, while a 10-day ceasefire between Lebanon and Israel has taken ​effect. Hopes of ​peace have driven a global stock rally, while oil, a key component of the Gulf's economies, was pinned below $100 a barrel.

Brent ⁠crude was down 3.13% at $96.28 a barrel by 1144 GMT. U.S. President Donald Trump expressed confidence that an agreement with Iran could soon be reached to end the conflict, and urged the Tehran-aligned Hezbollah group to hold ​its fire.

Any ‌credible path to ⁠easing maritime ⁠risks in the Strait of Hormuz would likely bolster regional risk appetite and support economic ​growth, said George Pavel, general manager at ‌Naga.com Middle East.

Dubai's main share index rose 1%, ⁠led by gains in heavyweight real estate and financial stocks. It gained 4.8% for the week, its biggest in more than nine months. Top lender Emirates NBD Bank jumped 2% on Friday, while blue-chip developer Emaar Properties rose 1.1%. 

Abu Dhabi's benchmark index edged up 0.03% and logged a weekly rise of 0.8%.

The index was supported by a 0.5% increase in Aldar Properties after the company announced the delivery of 9,000 ‌value rental homes in Mohamed Bin Zayed City and Baniyas, ⁠with a gross development value of 2.8 ​billion dirhams ($762.32 million).

UAE's largest lender First Abu Dhabi Bank also rose 1.6%.

The index gains were tempered by a 0.5% decline in its largest firm, International ​Holding Company, ‌and a 0.6% fall in UAE's third-largest lender Abu ⁠Dhabi Commercial Bank .