Gulf sovereign wealth funds drove a strong resurgence in capital allocation to mainland China and Hong Kong, contributing to $14.2 billion deployed during the first nine months of 2026, according to data from Singapore consultancy Global SWF provided to CNBC. The total represents an increase of almost 190% compared to the $4.9 billion recorded throughout 2025, rebounding from a 54% drop that year caused by geopolitical concerns and economic uncertainty.
Four Middle Eastern funds accounted for nearly 70% of total sovereign capital injected into China and Hong Kong during the period. Saudi Arabia's Public Investment Fund led deployments with $6 billion, followed by the Abu Dhabi Investment Authority (ADIA) with $2.5 billion. Abu Dhabi's Mubadala Investment Company committed $800 million, while the Qatar Investment Authority (QIA) contributed $600 million.
Allocations have focused heavily on technology, robotics, artificial intelligence, biotechnology, advanced manufacturing, and domestic consumer sectors. Andrew Wang, head of consumer private equity at Mubadala, told CNBC that China offered attractive valuations and expanding domestic consumption, noting Mubadala's September minority investment in Luckin Coffee as part of an approximately $1 billion deal alongside Centurium Capital.
Other international sovereign investors also stepped up activity, including Norway's sovereign fund and QIA participating in Alibaba's $10.2 billion share offering in August, while Singapore's Temasek and Indonesia's Danantara pursued opportunities across biotechnology, AI hardware, and industrial partnerships. Despite the rebound, Global SWF noted China and Hong Kong remain smaller sovereign destinations than the United States, which drew $132.4 billion, and Europe and the UK, which received $44.6 billion over the same nine-month period.
Sources
- Middle East News · 2026-10-22
