Bloomberg: Abu Dhabi Funds Plan to Restructure Their Strategy in China

SadaNews - Abu Dhabi is considering plans to merge the Chinese assets of two of its investment funds into a new entity, paving the way for a fundamental restructuring of its investment strategy towards the world's second-largest economy.

The proposed investment entity will be jointly owned by "L’imad Holding" and "Mubadala Investment", according to sources familiar with the matter. This approach would help reduce competition between Abu Dhabi's investment entities for the same opportunities, as the emirate aims to enhance its investment presence in China, according to sources who requested anonymity due to the confidentiality of the information.

The organizational structure and strategy are still under discussion, and no final decisions have been made regarding the merger.

Representatives from "Mubadala" declined to comment, while neither the Ministry of Foreign Affairs in Abu Dhabi nor the emirate's media office responded to requests for comment.

This step could place a pivotal economic relationship under the oversight of two prominent entities within Abu Dhabi's financial and influential ecosystem.

"L’imad" is overseen by Abu Dhabi Crown Prince Sheikh Khaled bin Mohammed, son of UAE President Sheikh Mohammed bin Zayed, who assumed more responsibilities in national security and the economy last year. In contrast, "Mubadala" is led by Khaldoon Al Mubarak, who has managed Abu Dhabi's key relationships, including its relations with China, for years.

Al Mubarak was among the executives who accompanied the Crown Prince to China this week, where meetings were held with President Xi Jinping.

Investment Expansion in China

"L’imad" invests in China through the sovereign investor "ADQ", which it acquired this year, while "Mubadala" has injected over $20 billion into more than 100 investments in China since 2015. The two entities have close ties, as Al Mubarak and his deputy at "Mubadala" serve on the board of "L’imad".

Abu Dhabi, which manages a sovereign wealth estimated at around $1.8 trillion, has been one of the most prominent global investors in recent years. Historically, its funds' investments, which also include the "Abu Dhabi Investment Authority", have been concentrated in the United States and Europe, with the emirate committing to inject over $1 trillion in America and billions in countries like France and Italy.

In contrast, relations with China have seen parallel expansion, despite Washington's discomfort regarding some deals. The non-oil trade volume between the two countries exceeded $100 billion for the first time in 2025.

Earlier this year, Al Mubarak stated that "Mubadala" had historically invested limited amounts in Asia but is now expanding its investment presence, citing strong performances in South Korea, Japan, and China during 2025. This direction aligns with the fund's $385 billion strategy, set in 2024, to double its exposure to Asia to about 25% by the end of the decade.

The Crown Prince's visit came amid a two-week truce between Washington and Tehran in a war that the UAE has borne the brunt of Iranian attacks.

"L’imad" Deals Enhance Investment Influence

However, the conflict has not deterred Abu Dhabi from its determination to make deals, as key entities have invested billions of dollars in alternative asset management, private credit, technology platforms, and the hospitality sector. This week, "L’imad" signed a $2.3 billion deal in Jordan, underscoring its role in bolstering the emirate's strategic relations.

"L’imad", which means "the pillar" in Arabic, made headlines last year after participating, along with influential Gulf funds, in supporting Paramount Skydance's acquisition bid for Warner Bros. Discovery. Abu Dhabi also included ownership of McLaren Automotive and its stake in Chinese electric vehicle maker Nio into the fund.

The fund's board includes prominent figures in Abu Dhabi, such as Jassim Al Zaabi, who is considered one of the most influential non-royal figures within the emirate, even though the fund is still in its establishment phase.