Middle Eastern investors, especially those from the United Arab Emirates (UAE), are increasingly expanding their investment scope in China. A notable example is Abu Dhabi sovereign fund CYVN Holdings’ recent investment of around $740 million in Chinese electric car maker Nio.
So far this year, the oil-rich Gulf country has made multiple investments in Chinese technology companies. Check out the investments in the following infographic:
In addition to the UAE, Saudi Arabia sovereign wealth funds, public investment funds and private companies are also increasing bets on China's technology sector.
On June 11, Saudi Arabia's Ministry of Investment and Chinese electric car maker Human Horizons signed a $5.6 billion deal to collaborate on the development, manufacture and sale of vehicles. In late May, Saudi Aramco-backed Prosperity7 Ventures announced an investment of “tens of millions of yuan” in Hyperview, a Shanghai-based assisted-driving technology company.
A recent CNBC report said Middle Eastern investors are actively seeking opportunities in China and then testing the waters with small investments, with cutting-edge technology, new consumer trends, and biotechnology being popular areas of interest.
Sources at three Chinese companies with US dollar-denominated funds told CNBC that many Middle Eastern investors have discussed deals with Chinese venture capital funds in the past 12 months.
China is the largest trading partner of Arab countries, and the volume of trade exchange between the two sides reached 430 billion US dollars in 2022, a 31% increase from 2021.