Abu Dhabi sovereign wealth fund Mubadala has taken a stake in China’s Luckin Coffee as part of a $1 billion investment alongside private equity firm Centurium Capital. Mubadala has been one of the world’s most active sovereign wealth funds, a run that has continued despite the Iran war.
The Luckin investment, which will give Mubadala a significant minority stake in China’s biggest coffee chain, adds to growing economic ties between the two nations. Mubadala has invested more than $20 billion in China across more than 100 deals since 2015.
Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed visited Beijing in April for talks on expanding bilateral economic and diplomatic relations. While Chinese investment flows are growing, the US still accounts for 44% of Mubadala’s $385 billion of assets under management and US tech firms have become crucial to the UAE’s ambitions to be a global AI leader.