【By Observer Net, Zhang Jingjuan】While Western institutions are still caught up in geopolitical noise and hesitation, Middle Eastern capital has already placed a vote of confidence with real money.

According to a report by Nikkei Asia on the 29th, the Mubadala Investment Company, which manages $330 billion in assets, has released signals that it will increase its investment in Asia, while emphasizing its commitment to China.

"We started paying attention to China about ten years ago... We have a good relationship with the Chinese government and a large network of general partners," said Mohamed Albadr, head of Mubadala Investment Company's Asia region, at the "SuperReturn Asia" event.

Facing the so-called "China market peak" argument, he refuted it, saying, "China is a $20 trillion economy, and there are definitely some high-quality opportunities there at the right price."

Albadr said that China accounts for about half of the sovereign wealth fund's investments in Asia. He stated that the company has a team of 35 people in Beijing and has made "nearly 100" investments in China.

In specific investment cases, Mubadala's actions are representative. Last March, the company jointly signed an investment agreement with PIMCO Investment Group, CITIC Capital, Ares Management's fund (Ares), and Platinum Peony, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), to invest approximately RMB 60 billion in Dalian Xinda Meng Commercial Management Co., Ltd., holding a 60% stake, while Dalian Wanda Property Management holds a 40% stake.

The report states that Mubadala also plans to increase its investment in the Asia-Pacific region from the current 13% to 20% over the next decade.

Mohamed Albadr, Mubadala Investment Company official website

Relevant data directly reflect the rising attention of Middle Eastern capital to the Chinese market. The Hong Kong English media South China Morning Post cited data from the Global SWF, reporting that in 2024, the share of Middle Eastern capital in global sovereign fund investments in China was approximately 60%, amounting to about $6 billion.

A global asset management giant, Invesco, also pointed out in its July global sovereign asset management research that 60% of Middle Eastern sovereign wealth funds plan to increase their investments in China over the next five years.

Cate Ambrose, CEO of the Global Private Capital Association, an independent non-profit organization for emerging market private capital, said that although American institutional investors remain cautious about investing in China, the situation is different in the Middle East, as many countries in the region are moving away from economic dependence on oil.

Ambrose said, "Investments between China and Gulf countries often have a strategic nature. If you want to build a technology ecosystem, be at the forefront of artificial intelligence, electric vehicles, and life sciences, choosing to cooperate with China in these areas is appropriate."

China's technological development provides more possibilities for cooperation. Earlier this year, DeepSeek shocked the world with its technical strength, consuming less data and costing only a fraction of American companies. Investments by companies such as Alibaba and Huawei in AI semiconductor fields have also shown the potential for cooperation to the Middle East.

This attraction has directly translated into the capital market - driven by optimism in areas such as artificial intelligence, the Chinese stock market has performed strongly this year. The Hang Seng Tech Index, which measures top tech companies listed in Hong Kong, has risen by about 40% this year, while the Hong Kong benchmark index has increased by about 35%.

Under the context of Sino-US trade friction, economic interactions between China and the Middle East have received more attention. On August 27th, China's Minister of Commerce, Wang Wentao, met with Saudi Arabia's Minister of Investment, Falih, in Beijing. Both sides focused on implementing important consensus between the two leaders, exchanging views on deepening bilateral trade, investment, and supply chain cooperation.

Wang Wentao stated that China is willing to expand the scale of bilateral trade with Saudi Arabia, improve the level of two-way investment cooperation, and expand cooperation in areas such as new energy, supply chains, and capital markets, promoting the continuous deepening of bilateral economic and trade relations. The Saudi side expressed support for its enterprises to continue increasing investments in China.

It is worth noting that the key cooperation project between China and the UAE - the fourth phase of the Dubai Mohammed bin Rashid Al Maktoum Solar Park, a combined thermal and photovoltaic power generation project, has achieved 24-hour continuous stable power supply. All units are currently in commercial operation, with a cumulative power generation of 6.68 billion kilowatt-hours, continuously supplying clean and stable electricity to Dubai, equivalent to reducing approximately 3 million tons of carbon emissions. This not only promotes the green transformation of Dubai's energy structure but also brings significant economic and social benefits.

At the current stage of adjustment in the global capital flow pattern, the continued increase of Middle Eastern capital in the Chinese market stems from the judgment of high-quality opportunities in the $20 trillion economy, as well as the strategic alignment of both sides' development demands.

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